Finding the right EDI solution can be considered a complicated process, as one needs to weigh the pros and cons of on-premise and cloud-based systems in order to make the right decision. As explained below, opting for cloud is -in this case as well- the recommended approach. So, let us take a look at some main selection criteria.
Transaction volume – Management
If your business does not have a specific volume of EDI transactions and operates in a volatile environment or industry, or if you want to penetrate new markets, you will need the flexibility and management skills of a cloud-based solution provider. In such cases, cloud is the ideal approach, since you can easily outsource anything and everything you cannot handle internally.
Expenses and budget
This is the most important benefit that the transition to a cloud-based model has to offer. A cloud EDI solution will minimize your need for specialized IT personnel, without requiring any initial investment. The subscription model enables you to pay only for what you use. You should seriously consider from the start the cost that you’re willing to pay, in case your requirements change or increase in the near future.
Scalability, flexibility, compliance
This may be the biggest advantage that a cloud EDI solution can offer to many businesses. Most providers have extremely flexible cloud infrastructures. If your business is rapidly developing and therefore needs to exchange more documents with its partners, a cloud service will offer you the flexibility you need to scale up your EDI capabilities, quickly and safely, and also in compliance with the international regulations.
Data protection and safety
For many business executives, this is the most important criterion when deciding between an on-premise and a cloud-based solution. Many businesses cannot even consider the idea that their valuable data will be stored “outside the walls”. Nevertheless, this mentality is becoming less and less popular among executives in the last couple of years. It must be noted that cloud services are extremely secure, thanks to their advanced encryption, which ensures that all data is protected, both at rest and in transit.
So, what is the right EDI model for your business? The answer may not be so simple to start with, but there are certain indicators and factors that will help you make the right decision. If your business is developing and penetrating new markets and regions, finding new partners and operating on a global level, you will discover that the flexibility and scalability of the cloud model are exactly what you’re looking for.