Enterprise Resource Planning (ERP) packages are used to integrate business processes of an organization through shared information flow. Majority of the large organizations within India have either implemented or are implementing ERP software. With the increasing market competition and globalization, Small and Medium sized Enterprise (SME) are keen to deploy them, but the high cost involved in implementation of these packages is a major hurdle to go ahead with this decision. The solution is to go for cost effective ERP solution. ERP on Cloud is one of the viable options, as there is no initial hardware or software infrastructure investment needed making it a cost effective solution.