In this research paper, we have developed a new cloud-based Enterprise Resource Planning System using the Linked Servers technology. Our focus is on Small and Medium Scale Enterprises (SMEs), seeking for ways of assisting them enjoy the huge benefits of Enterprise Resource Planning and the internet cloud. Our ERP system can integrate key business processes into a single software solution, and enables seamless flow of information from heterogeneous data sources across all functional areas of the organization and beyond. The new system was developed using the prototyping methodology, considered as best suited for a project of this kind due its advantage of active user involvement throughout the development process. Using the questionnaire as our major data gathering instrument, user requirements were gathered from selected SMEs across the south-east geopolitical region of Nigeria to aid our design. A thorough Requirement Analysis was carried out to ensure proper design of the prototype system, and, using the system development life cycle approach, we carried out design of the architectural frameworks for the cloud based ERP system, to illustrate basic layout of application deployment and the synchronization mechanism for data exchange between vendor servers and the central server. Result obtained from our study shows that the new ERP software solution provides improved operational efficiency and customer satisfaction. We recommend the creating of enabling environment by appropriate government authorities, and a systematic implementation of the findings of this research paper by corporate business owners. Keywords: Internet-cloud, ERP, Vendor servers, SMEs, Data integration.