Enterprise Resource Planning (ERP) services have become a huge business in the industry today. With the expansion and increased availability of services, there are a lot of myths and half-truths floating around. These falsehoods could be deliberately spread by their detractors, or mistakenly spread by those who would otherwise support it.

Cloud software programs are a key success factor for businesses, so it is necessary to clear up some of these misconceptions. In no particular order, here are five critical ERP facts relating to management, life-cycle costs, or security.

1. Cloud ERP is NOT cost-prohibitive

One of the primary myths in relation to cloud ERP programs is that they are completely cost-prohibitive for businesses. The thought is that it is too expensive for a company, even a large one, to adopt ERP systems, or that in the long-run the upkeep costs would disrupt their operations.

In reality, costs across the ERP industry are rapidly falling as the marketplace expands and cloud vendors are facing competition. These cost savings are passed on to the end user. And since cloud programs reduce the amount of physical space and workflow requirements, over the life-cycle of a project it has a large return on interest.

2. Cloud ERP is NOT Hard to Manage

Another common myth is that cloud ERP services are too complex and challenging to control. A lot of companies believe that using the programs takes up too much of their time or can be difficult to manage instead of using “tried and true” methods, or that the services are not a good fit for their requirements.

That is far from the truth. By aggregating front and backend services and centralizing data points, it is easier than ever for a company to manage their services using cloud programs. And as the programs and marketplace evolve, they can be easily customized to fit a business’ needs.

3. Moving from an On-Premise to a Cloud Services is NOT Difficult

Companies also have the misconception that moving from a physical program to one based on the cloud is difficult and time-consuming. Or that during roll-out the system would not be compatible with what they are using. For the “sunk costs” theory, there is also the belief that what they have already invested is worth it and that it would be more wasteful to switch.

This belief stems from earlier programs which did present challenges during rollouts. Today’s programs are more efficient than ever, and cloud vendors have a vested interest in making programs user-friendly for launches. This ensures that there is a minimum of issues when launching projects. It is also vital to ignore the sunk costs practice; it can be a better investment in the long run to renovate systems that are not functioning properly.

4. Cloud Automation will NOT Replace Jobs

Another of the myths is that moving to data automation will result in a whole industry field getting reduced due to becoming obsolete in job functions. Or that the growth is unsustainable and there could be a bubble burst in the industry.

Again, it couldn’t be farther from the truth. The rising ROI and level of customization for cloud programs means that, for the foreseeable future, such services are actually transformative and will result in new job functions. And even if certain functions do become obsolete, the positions will open up for new practices and careers.

5. Cloud Services are Secure

A final key myth is that ERP programs are completely insecure, allowing hackers open access to their information. Part of it is the belief that everything for the service is stored together and can be easily accessed, moved, or deleted entirely.

This is one of those misconceptions that is simply not true. The encryption for cloud services is industry-leading. And while nothing is truly impenetrable for determined “black hats”, the level of care and protection offered for company’s data by cloud vendors is top-notch. Some vendors offer around-the-clock safeguarding, while others employ enhanced encryption and off-site data backup.