Making the Move to Cloud-Based EDI Solutions

Whether you’re new to EDI or currently using an on premise based infrastructure solution, you may be considering the switch to a cloud based solution. 

The term ‘cloud’ is used to describe when something is accessed/run over a network connection and is no longer required to be stored locally. Cloud based solutions have gone from being seen as an unknown area to a mainstay in day-to-day tech (like Gmail or Facebook.)

But while making the move to cloud-based EDI solutions makes sense, it shouldn’t be done without careful consideration. This article can help guide you on what to think about before you adopt a cloud solution and how you should go about making the shift.

What you need to think about before adopting cloud-based EDI

Businesses are increasingly turning to cloud-based EDI to replace traditional infrastructure. Here’s why embracing the cloud can deliver significant advantages:

1. Replace On-Premise Infrastructure

Cloud EDI eliminates the need for costly hardware investments and maintenance. It’s designed for seamless integration with ERP systems such as SAP, and Oracle EDI integration capabilities as well. This makes cloud adoption not only cost-effective but also highly compatible with enterprise software.

2. Scalability on Demand

Unlike on-premise systems, cloud-based EDI lets you expand or contract your capacity effortlessly based on demand—especially helpful for businesses with seasonal fluctuations. This flexibility avoids expensive, underutilised hardware upgrades.

3. Reduced Risk & Outsourced Expertise

Shifting to cloud-based EDI reduces the need to maintain a large IT team or in-house EDI specialists, as providers manage updates, testing, and support around the clock—lowering both risk and operational overhead.

4. Continuous Backup & Disaster Recovery

Cloud platforms offer built-in redundancy and automated backups, ensuring your data stays protected and recoverable, without manual intervention. This approach safeguards against hardware failure, cyberattacks, or other disruptions.

5. Access Anytime, Anywhere

With cloud-based EDI, authorized users can securely access the system from any location, even via mobile devices—making monitoring and management far more modern and flexible than onsite-only setups.

When You Should Consider an EDI Managed Support Provider

Choosing to move your EDI system to a cloud-based solution is a major step, and leveraging a managed support provider can smooth the transition. Consider enlisting expert assistance if you encounter any of the following scenarios:

1. Complex Integrations

If your operations involve intricate system connections—such as ERP, CRM, WMS, or custom workflows—a managed provider brings the technical know-how to ensure seamless, reliable integration.

2. Limited Resources

Smaller IT teams or businesses with constrained technical capacity can offload the technical complexity to a provider, freeing you to focus on core strategy and business growth.

3. Scalability and Flexibility

A managed provider enables your EDI system to dynamically scale—handling spikes in transaction volume, onboarding new partners, or adapting to evolving business needs without infrastructure strain.

4. Ensuring Compliance

Compliance standards (e.g., ANSI X12, EDIFACT, HIPAA, AS2) are always evolving. Managed providers stay current, ensuring your EDI setup remains compliant and reducing the risk of costly penalties.

5. Ongoing Support

With continuous monitoring and 24/7 support, a managed provider resolves issues swiftly, minimizes downtime, and ensures smooth system reliability—without overburdening your team.

6. Security Assurance

Managed providers invest in advanced security measures—such as encryption, secure data centers, and regular updates—to ensure your transaction data remains safe and compliant.

Why Act Now?

Over 59–85% of businesses in the supply chain sector already use EDI, highlighting how critical it has become for efficient, modern operations

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Vendor Lock-In & Data Portability: What You Need to Know

Transitioning to a cloud-based EDI solution offers immediate gains in flexibility and efficiency—but it’s also vital to plan for long-term freedom and control.

1. Vendor Lock-In Risks

Cloud providers may use proprietary platforms, APIs, or data formats that make switching vendors or migrating systems difficult and expensive. Evaluating portability options upfront helps protect against being tied to a single supplier long-term.

2. Data Portability & Exit Planning

Ensure the provider supports easy export of your EDI data and configurations, so you can switch systems or retrieve data without hassle. This is crucial for maintaining control and adaptability as your business evolves.

Why It Matters: Cloud Cost Overruns & Flexibility

A recent report found that 69% of IT leaders experienced budget overruns in their cloud expenditures during 2023 due to inadequate cost forecasting and monitoring—underscoring the need to stay flexible and avoid lock-in.

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FAQs

1. What are the main benefits of migrating to cloud-based EDI solutions?

You get scalable capacity to meet fluctuating transaction volumes, lower upfront and maintenance costs, robust security with encryption and compliance, seamless integration with ERP/CRM systems, and access from anywhere.

2. What are the main benefits of migrating to a cloud-based EDI solution?

Most migrations wrap up within a few weeks to a few months, depending on your existing system’s complexity and partner onboarding needs.

3. Will my historical EDI data still be accessible after migrating?

Yes, many cloud EDI platforms offer archival or migration tools so you can retain full access to legacy data.

4. Can cloud-based EDI integrate with existing ERP and CRM systems?

Absolutely. Cloud EDI solutions are designed for API-driven integration, making it easy to connect with ERP, CRM, and other core systems.

5. What challenges should businesses anticipate during migration?

Typical issues include detailed migration planning, coordinating with trading partners, managing data integrity, and avoiding downtime—all solvable with phased rollouts and testing.

6. Will migrating to a cloud-based EDI solution reduce IT maintenance burdens?

Yes, moving to the cloud shifts updates, patching and infrastructure upkeep to the provider, lightening the load on your internal IT team.

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Discover cloud-based EDI solutions with Data Interchange

Choosing a provider that can tailor their solutions to meet your specific needs, and offer comprehensive support, can transform the way your business operates and enhance your overall efficiency. This strategic partnership can lead not only to an easier transition but also to sustained operational success.

At Data Interchange, we hold decades of experience in EDI best practices and technology. We use our expertise to curate best-in-class EDI solutions and offer custom support that’s personalised to your business.

Whether you’re considering a shift to cloud-based solutions or need any other help in navigating the world of EDI, we’re here to support you.

Just book a call with one of our experts.