ERP in 2026: Why are cloud solutions dominating the market?

The implementation of cloud-based enterprise resource planning software has seen steady and accelerating growth in recent years, with no signs of slowing down. This trend is entirely justified. Cloud ERP solutions offer significant strategic advantages over on-premise systems, such as:

– business process optimization;

– increased operational flexibility;

– higher overall company efficiency.

The long-term advantages make cloud ERP software a logical and sustainable choice for organizations that aim to maintain and develop their competitive advantages in 2026 and beyond.

On-premise vs. cloud

ERP is short for Enterprise Resource Planning – a software for planning enterprise resources. It is multifunctional business management software developed as an integrated set of modules. Its main purpose is to unite and coordinate the key functional areas of an organization’s activities into a comprehensive and effective system.

ERP software can be:

• On-premise – installed and maintained in the company’s infrastructure;
• Cloud ERP – accessible via the Internet, managed by a provider, and offered as a service.

One of the main advantages of modern cloud ERP software is that they are hosted on the provider’s servers and are used entirely via the Internet. This ensures secure and constant access to key business processes from any device and location – whether teams are working from the office, remotely, or on the move. The platform combines finance, supply chain, sales, human resources, and operational functions into a single environment, providing a comprehensive view of data and supporting informed decision-making.

Read more: Quadrant Beverages and Oracle NetSuite: Behind the scenes of the largest ERP project implemented by Balkan Services

Unlike on-premises ERP solutions, which require proprietary IT infrastructure and significant upfront investments, cloud ERP software are typically offered on a subscription basis. The provider takes responsibility for hardware, maintenance, security, and regular software updates. This model significantly reduces initial costs and the need for specialized IT expertise, making ERP solutions more accessible to organizations of all sizes. Freed from managing the technical infrastructure, companies can focus their efforts on real business value—increasing productivity and optimizing processes.

On-premises ERP systems often prove insufficiently flexible to meet the dynamic requirements of modern business. Expensive customizations and disruptive upgrades not only increase maintenance costs but also hinder timely updates. As a result, many organizations continue to work with outdated software versions, which limits their ability to adapt to new market realities and business models.

Cloud ERP solutions overcome these limitations by leveraging the power of internet technologies to provide greater flexibility, scalability, and resilience to change. They enable companies to grow without technological barriers and respond more quickly to new opportunities.

What are the key advantages that make cloud ERP the preferred choice for more and more companies?

10 key reasons to choose a cloud ERP software:

1. Lower capital costs

Implementing and managing cloud ERP software does not require investment in proprietary hardware or expansion of the internal IT team—the vendor provides and maintains the entire technology infrastructure. The initial costs of cloud ERP solutions are usually significantly lower than those of on-premises software, as subscription fees cover hardware, software, security, regular updates, and technical support.

With on-premises ERP systems, organizations bear full responsibility for purchasing and maintaining hardware, managing security, and paying annual maintenance fees.

The cloud model eliminates these capital expenditures and converts IT costs into predictable operating expenses, facilitating financial planning and budget optimization.

2. No hardware infrastructure required

With cloud ERP systems, the entire technology infrastructure is provided and managed by the vendor, allowing companies to avoid both initial investments and ongoing hardware costs.

In contrast, on-premises ERP solutions require the construction and maintenance of complex, expensive infrastructure—enterprise-class servers, cooling, archiving and data storage software, network equipment, and other specialized components —as well as significant electricity costs.

Cloud ERP software eliminates these requirements. All that is needed to access the system is a device with an internet connection, an up-to-date web browser, and standard computing power. This makes the solution accessible from most modern computers and mobile devices, providing flexibility, mobility, and lower operating costs for the business.

3. Regulatory compliance

It is important for ERP software to comply with the ever-changing regulatory framework, which often poses a serious challenge for locally based solutions—especially when organizations use older software versions.

In such cases, additional resources are required before new compliance requirements can be implemented.

Cloud ERP software offered by leading providers are designed with a proactive approach to regulatory compliance. They integrate built-in compliance with national, regional, and international standards and regulatory requirements related to accounting, taxation, and personal data protection. Regulations such as HIPAA, GDPR, GAAP, and other key frameworks are embedded directly into the software, with regular automatic updates ensuring ongoing and up-to-date compliance without additional administrative burden on the business.

4. Faster and easier implementation

Organizations that choose cloud ERP solutions typically achieve real operational readiness significantly faster than those that choose to implement on-premises software.

This is due to the holistic nature of cloud platforms, which eliminates the need to manage hardware logistics—from purchasing and configuration to ongoing maintenance.

An additional advantage is the lower workload on employees during implementation. Cloud ERP systems are designed with intuitive user interfaces and modern user experiences, reducing training time and speeding up adoption. The ability to implement simultaneously in multiple locations and geographic regions further optimizes the process by reducing the need for travel and associated costs for implementation teams.

Read more: ERP systems and EURO – how do you prepare them? (UPDATED)

5. Higher reliability in daily operations

Cloud ERP software providers typically guarantee extremely high levels of availability – often up to 99.999%– meaning less than 8 minutes of unplanned service interruption per year. Maintaining this level of reliability requires significant investment in infrastructure, monitoring, and expert support—resources that most organizations find difficult to provide in-house.

Thanks to economies of scale, cloud ERP providers such as Oracle NetSuite ensure stable and uninterrupted software operation, minimizing the risk of outages and increasing the predictability of daily business operations.

6. Secure and fast recovery in critical situations

The high reliability of cloud ERP solutions is complemented by built-in disaster recovery mechanisms. The platforms are designed to provide protection and rapid data recovery in rare but critical situations such as fires, floods, theft, or other incidents.

Daily automatic backups included in the SaaS subscription allow cloud ERP providers to restore the system quickly and with minimal impact on business.

With on-premises ERP solutions, the responsibility for planning and executing disaster recovery strategies remains entirely with the customer, often leading to higher risk and additional costs.

7. Easier upgrades and integrations

Since cloud ERP providers maintain a single, centralized version of the software, configuration and customization processes are significantly simplified. All customizations and integrations are preserved and carried over automatically with each update, eliminating the risk of functionality loss and minimizing downtime.

This approach makes upgrades fast, predictable, and virtually unnoticeable to end users. Companies can always stay with the latest version of the software without postponing updates due to concerns about high costs or operational disruptions. As a result, cloud ERP integrates more easily with both existing systems and emerging technologies and digital platforms.

8. More comprehensive and flexible access to information

Cloud ERP software centralize data from all key business functions into a single database, providing authorized users with a comprehensive, up-to-date view of the organization’s activities.

Access to the system at any time and from any location makes cloud ERP a particularly effective solution for teams with a hybrid or remote working model. The only requirement is an internet connection, which eliminates the need for complex VPN configurations or restricted web portals. This gives companies strategic flexibility in hiring and retaining highly skilled professionals, regardless of their geographic location.

Learn more: How to calculate the return on investment in an ERP software? (part 1)

9. Support for sustainable growth and scalability

Cloud ERP solutions are designed to grow with the business, making them particularly suitable for companies with growth ambitions.

Organizations that implement a cloud ERP system early on in their development can subsequently expand its scope seamlessly by adding user licenses, functional modules, and additional storage capacity.

Remote access to the system further facilitates geographical expansion. Companies can enter new markets or expand their operations into other regions and countries without having to create and maintain separate ERP software. Even small teams or individual specialists can start working in a new branch relatively quickly, rather than waiting for the lengthy installation and configuration processes typical of local systems.

10.  Easy integration with new and complementary technologies

Cloud ERP platforms are built on a unified, modern technological foundation, creating a favorable environment for the development and implementation of additional applications, extensions, and integrations. This makes it easier for partners and external suppliers to create innovative solutions that build on the core ERP functionality.

With the software industry’s growing focus on cloud technologies, more and more partners and developers are directing their investments toward cloud ecosystems rather than traditional on-premises systems. This guarantees companies that choose cloud ERP access to a richer technological ecosystem, faster innovation, and longer-term sustainability of their IT strategy.

Source: Official website of Oracle Netsuite

Choosing a cloud ERP software is a strategic step, but the real value for the business comes from how it is implemented, adapted, and developed over time. This is where Balkan Services’ expertise plays a key role. With years of experience in implementing Oracle NetSuite ERP, the company helps organizations not just implement software but build a sustainable, scalable, and effective business platform tailored to their processes, industry, and goals.

Balkan Services’ approach combines a deep understanding of business processes, technical expertise, and consulting thinking, ensuring that every ERP solution is a real working tool for growth, transparency, and better management. Through precise analysis, personalized implementation, and long-term support, the team transforms cloud ERP from a technological investment into a competitive advantage for its clients.

In a world of dynamic markets and growing business demands, Balkan Services has established itself as a reliable partner that combines modern cloud technologies with proven expertise and commitment to results.