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Cloud ERP explained simply

Published Jul 14, 2025
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What is cloud ERP?

Cloud ERP refers to an enterprise resource planning system (ERP system) that is based on cloud technology. Companies access their ERP system directly via the internet instead of via a local server.

In this article:

How does cloud ERP work?

Cloud ERP runs on the servers of an external data center. Access to the ERP system and therefore control of all operating processes is possible at any time and from any location via Internet access. Data that is processed in a cloud ERP is automatically synchronized with the installed ERP software in real time. Cloud ERP can be operated in the public cloud and in the private cloud.

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Yaveon 365: cloud ERP for the process manufacturing industry 

Standard functions are good, but they won't get you to your goal: maximum automation for more time. The Yaveon 365 cloud ERP helps you achieve this.

What is the difference between cloud ERP and on-premises?

On-Premises

  • Data is stored on the company's own servers and computers
  • ERP becomes the property of the company upon purchase
  • Companies maintain their software themselves
  • The necessary IT infrastructure must be set up for the ERP system
  • The company's IT department is responsible for updates
  • Additional functions can be added manually at a later date, interfaces to third-party systems are developed manually
  • On-premises installation is carried out manually on all affected computers

Cloud ERP

  • Installation takes place on external servers
  • Company rents cloud ERP
  • Maintenance and updates are handled by the ERP provider
  • No need for own infrastructure
  • Functions can be easily added and interfaces configured
  • Can be used on any end device via an internet connection

What are the benefits of cloud ERP?

  • The scope of services is scalable
  • Modern cloud ERP providers focus on maximum security
  • Data backup for disaster recovery
  • Modern and intuitive user interface
  • Precisely predictable costs due to the rental price
  • Commissioning possible in a short time
  • Maintenance is completely taken over by the ERP provider
  • Updates are installed automatically
  • Thanks to access from anywhere, work is possible regardless of location and time
  • Enables faster response times and thus a competitive advantage
  • Data is available in real time and always up-to-date

Who is a cloud ERP suitable for?

Cloud ERP is particularly suitable for companies that have few resources for their own IT infrastructure and want to outsource maintenance and servicing. Cloud ERP is also suitable for companies that want to be able to work from any location and at any time, with little effort required for installation. Companies that want to scale their ERP solution flexibly are also in the right place with cloud ERP. In many cases, these are small and young companies that are growing, as a cloud ERP enables dynamic working.

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This is the cloud ERP for the process industry

Yaveon 365 meets the strict requirements of the regulated environment and is seamlessly integrated into Business Central.

How secure is a cloud ERP?

Concerns about data protection and data security persist, but modern ERP providers offer all measures to provide secure and reliable cloud ERP. If a cloud ERP is operated in a German data center, security is usually far higher than when using an on-premises system at the company's premises. The reason why providers offer maximum security here is the German Federal Data Protection Act (BDSG). It is particularly strict and applies to all cloud computing providers in Germany.

Cloud ERP in regulated industries

The implementation of cloud ERP systems in the pharmaceutical and medical technology sector presents specific challenges:

  • Software validation and updates: regular updates by the cloud provider require ongoing process validation of the systems in order to meet regulatory requirements such as GxP and FDA standards.
  • Data security and GDPR compliance: As highly sensitive data is stored in the cloud, the highest security standards and compliance with the GDPR must be guaranteed.
  • Scalability and flexibility: Cloud ERP systems must be designed in such a way that they can react flexibly and scalably to changing operational and regulatory requirements. Every adaptation or expansion must be carefully validated and fully documented to ensure compliance with legal requirements.
  • Data migration and system availability: The migration of existing data to the cloud requires particular care in order to preserve data integrity. In addition, the availability of the system for critical processes must be ensured at all times.

These points underline the need to carefully select and implement cloud ERP systems to meet the specific requirements of the industries.

Yaveon 365: Cloud ERP for the process manufacturing industry

Yaveon 365 is the right ERP solution for companies in the batch-controlled process manufacturing industry. It aims to make the business processes of these companies more efficient and transparent. Yaveon 365 offers the following special features in connection with cloud ERP use:
  • Validation: companies in regulated industries must validate their ERP systems in order to comply with regulations. Yaveon ProBatch provides features and documentation to support this validation process.
  • Scalability and flexibility: Yaveon 365 can respond flexibly to changing business requirements. Companies can quickly deploy additional resources as their needs grow without having to invest in physical servers.
  • Compliance: The solution supports compliance with industry-specific regulations such as the EU GMP guidelines (Good Manufacturing Practice) or FDA requirements.
  • Specialization for the process industry: Lot tracking, recipe management and integrated quality management are specially optimized for companies in this industry.
  • Integration: Seamless integration into the Microsoft Dynamics 365 ecosystem and other systems for central data synchronization.
  • Security: High security standards through data encryption, regular backups, automatic updates and automated tests.
Autor Stefan Klammler

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