What is a Cloud Purchase Order System?

To properly analyze the concept of a cloud purchase order system, it’s instructive to split the term in half – cloud technology and purchase order system.

First things first: cloud technology.

According to investopedia.com, cloud technology is “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 servers.

At its core – software that is delivered and hosted on external cloud storage facilities, and not installed and accessed via traditional on-premise servers.

Next up: purchase order system.

According to businessdictionary.com, a purchase order system is “in 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.

So, to sew these terms back up again, a cloud purchase order system is simply a software solution designed to generate electronic purchase orders that are hosted on external storage facilities (not in-office).


Cloud purchase order systems are becoming increasingly popular among firms (large and small) looking to automate the purchasing process. In total, the cloud computing industry is valued at north of US$150 billion and is expected to hit US$205 billion by 2018.

There are a host of reasons for that increase in popularity – routine updates, nimbleness, flexibility – but chief among those reasons is cost. Cloud technologies remove the cost of expensive infrastructure and maintenance typically borne by businesses. That’s not to say that cloud-hosted software doesn’t come with a price tag – it does.

Often, cloud technologies are delivered on the Software as a Service (SaaS) subscription model, which requires users to pay, typically, a monthly fee to use the software in question. But those subscriptions costs are a fraction of the expensive price tag and maintenance cost that comes with traditional software installed on premise.


I could go on for days about the benefits of a cloud purchase order system. But, for your sanity and mine (I kid, I kid), I will focus on what I believe is the most powerful benefit of a cloud purchase order system: spending visibility.

A cloud purchase order system will catalogue all of the electronically created purchase orders made in the system for easy reference. As a result, managers/executives/decision makers can see, at all time, the financial health of the organization.

With clear visibility into company spending, managers will know how much is being spent, which department is spending what and what goods or services are being purchased most often.

Couple that with a more nimble and affordable cloud technology solution, and that’s a powerful combo. A cloud purchase order system can truly help a firm of any size – the reasons listen above are just the beginning.

Procurify‘s cloud based e-procurement solution provides on the fly purchase order creation and stores them in the cloud, so that they are accessible anytime, anywhere, as long as you have an internet connection. Learn more about how Procurify benefits organizations with their cloud based procurement software here.


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