What is a cloud purchase order system?

Bogdan Büchner

To fully explain and describe what a cloud purchase order system is, it is crucial to split that phrase in two. First you would look at cloud technology, and then you’d move onto purchase order system.

First up

Cloud Technology. Cloud technology has been described as “A Model for delivering information technology services in which resources are retrieved from the Internet through web-based tools and applications, rather than a direct connection to a server. Data and software packages are stored in severs,” according to investopedia.com. In other words, cloud technology is a type of software that is sent to and hosted on external cloud storage facilities. This software is neither installed or opened up on the traditional on-premise servers.


Purchase Order System. When taking a look at businessdictionary.com, you will see that a purchase order system is described as “an Internet of other network in which a firm can generate purchase orders, and link to approved vendors, which enables the direct purchase of goods and services.”

When you add these terms back together, a cloud purchase order system is when a software solution is created to produce electronic purchase orders that are then hosted on storage facilities that are completely external and not found in-office.

The Popularity of Cloud Purchase Order Systems. Today, many different firms are taking part in the procurement of cloud purchase order systems because they have the power to automate the whole purchasing process. This doesn’t just pertain to large firms. Small firms are also choosing to use cloud purchase order systems. With this newfound popularity, the cloud computing industry is now worth as much as $150 billion in the United States and is expected to get as high as $205 billion in the United States by 2018.

There are a bunch of different reasons why cloud purchase order systems have gotten so popular lately. Routine updates, flexibility and nimbleness are a few reasons. However, the most important reason for this surge is cost. When firms use cloud-based technologies there is no cost applied here for the infrastructure and upkeep that most businesses have to face. Of course, cloud-based software does have a cost, but it’s just not as much as you would find otherwise.

A lot of times to use a cloud technology, it has to be delivered on the software as a service subscription model. With this model, users have to pay a certain amount of money to partake in it. Usually, this is a monthly fee. These subscription costs are so much cheaper, though, than the costs firms would have to pay for the traditional software that is applied in these cases as well as maintenance prices added onto that.


There are a variety of benefits that come with the e-procurement of a cloud purchase order system. However, the biggest and most influential benefit is spending visibility. A cloud purchase order system will give businesses a place to see all of the electronically created purchase orders generated in the system itself. This makes for an easy reference. Thanks to this, the executives of the firm can see the financial situation of their business at all times. By being able to see the company’s spending, decision makers can see exactly how much money the business is spending, what exact department in the company is spending that and what is ultimately being bought. Mix this spending visibility with a much more affordable cloud technology solution and a business is in ideal shape. A cloud purchase order system can aide any type of firm, big or small.

Curious to find out more?

Schedule a live demo with one of our sales representatives today.