Cost Optimization Strategies for Cloud ERP Deployments in Manufacturing Enterprises

Paul Praveen Kumar Ashok ()

International Journal of Computing and Engineering, 2021, vol. 2, issue 2, 11 - 21

Abstract: Cloud-based Enterprise Resource Planning (ERP) systems have become essential for manufacturing enterprises seeking agility, scalability, and global integration. Despite their advantages, cloud ERP deployments often face rising operational costs due to underutilized resources, complex licensing models, and inefficient workload management. This paper investigates cost optimization strategies tailored for manufacturing enterprises adopting cloud ERP platforms. I identify key cost drivers including infrastructure provisioning, software licensing, data storage, and third-party integrations across various deployment models such as public, private, hybrid, and multi-cloud environments. By applying cloud financial management principles (FinOps) and real-time monitoring tools, I develop a framework for workload rightsizing, license rationalization, automated scaling, and cost governance. The study draws on real-world case studies from mid- to large-scale manufacturers using platforms like SAP S/4HANA, Oracle ERP Cloud, and Microsoft Dynamics 365. My findings highlight how strategic deployment planning and continuous optimization can lead to cost reductions of 20–35% without compromising ERP performance or compliance. The paper provides actionable insights for CIOs, IT leaders, and financial controllers to align ERP operations with business value while maintaining transparency and accountability in cloud spending.

Keywords: Cloud ERP; Cost Optimization; FinOps; Hybrid Cloud; ERP Cost Drivers; ERP in Manufacturing (search for similar items in EconPapers)
Date: 2021
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