How Cloud ERP Can Reduce Your Energy Costs

How Cloud ERP Can Reduce Your Energy Costs

With spiralling energy costs, businesses are having to find creative ways of cutting their electricity and fuel consumption.

Switching from an on-premises ERP to a cloud ERP provides one such option. It’s a shrewd move that could see your energy costs slashed.

The Overlooked Costs of On-Premises Software

Until recently, companies have probably not been overly focused on the running costs of their on-premises software.

If you use such software, you probably hadn’t even investigated your precise expenditure on electricity for running the servers 24/7, along with lighting and the vital air-conditioning that keeps everything at the required temperatures.

But perhaps the recent heatwaves we’ve had, together with the escalating energy costs crisis, might have prompted you to reconsider things.

Energy consumption is a large overhead. And needing to keep your server room at a constant 18 degrees so that your equipment functions optimally requires a lot of power.

With no price cap on business energy costs, the current price rises threaten to increase your power bill massively. Some suppliers have doubled their prices in the past year.

So, if you want a wake-up call, check to see how much you’re spending on constantly running your servers, server room and air-conditioning. You will clearly see how much this level of power consumption is impacting your bottom line. By switching to a cloud-based ERP, you could eliminate those costs.

The Energy Costs of Cloud ERP are Minimal

By running cloud-based ERP, you don’t need the infrastructure of on-site servers in a dedicated server room – nor the power for lighting and air-conditioning.

NetSuite ERP is cloud-based and runs on the Oracle data server network. Twelve data centres across the world serve the needs of more than 31,000 companies and manage their combined six petabytes of data – one petabyte is one million gigabytes. NetSuite clients make more than 1.5 billion application requests every day, so the systems have been designed to accommodate these massive requirements and have built-in additional capacity to cope with usage spikes.

When you switch to cloud ERP from NetSuite, you don’t have to pay to run a server room. Cutting out the electricity to power the servers, lighting and climate control will dramatically reduce your energy costs.

NetSuite estimates that its customers can “reduce their overall server room electric consumption by 99%, resulting in an average cost reduction of $10,300 per year.”

You’ll also reduce your maintenance expenditure, since both major upgrades and minor updates are done in the background for you. You won’t need to allocate precious IT labour to managing servers and on-premises software, either.

Nor will you have to worry about regularly upgrading your servers to keep them current and as powerful and energy efficient as possible.

According to NetSuite, savings of as much as $100,000 a year can be made by combining energy cost savings with the reduction in software maintenance costs and the elimination of the hardware costs, along with its maintenance and infrastructure.

Switch to the Cloud, Ditch the Costs

Moving your ERP software to the cloud minimises your hardware needs, reduces energy consumption and saves you money.

If you’re worried about energy price rises this winter, switch to the cloud. With our NoBlue Now programme, qualifying companies can even be up and running with a standard version of NetSuite ERP within 30 days of signing the contract. For more information, contact us today.


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Stephen Adamson


[email protected]

(+44) 115 758 8888
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