On-Premise Vs Cloud ERP – What You Need To Know

If you are considering the use of an ERP system for your business, chances are you will be faced with so many options. When you consider that option, one of the important decisions you should make is whether you will be using a cloud ERP or ERP that is installed on your computer (on-premise)?

on premise vs Cloud ERP

The basic difference between on-premise and cloud ERP is very clear, on-premise ERP is installed on your computer and server devices that are then managed by your IT staff, but cloud ERP or commonly known as SaaS (Software As a Service) where all data is managed over the internet and accessed by using a web browser.

The type of deployment you choose will greatly affect your business. Here are some key factors needed to consider in the use of on-premise or cloud erp software.

Ownership Costs

On-premise ERP systems typically require substantial costs and continued investment to purchase and manage related software and hardware along with the servers and facilities required. If your company does not have an experienced IT staff, you may need time and money in addition to its personnel and training.

In addition, the on-premise system requires your IT team to spend a lot of time and budget to make sure your system works properly. Not to mention if you have to do maintenance, special room server and so forth.

But for cloud ERP systems, the required cost is generally lower because you only implement the software as needed which can then be accessed via a computer with internet connection.

Cloud ERP provides the host and keeps all IT infrastructure for you to ensure the system works properly, the data is secure and product developments can be launched without much effort and without breaking customizations that have been applied before.

System upgrades and developments

On-premise software erp can also be customized, but this customization is tied to existing deployment software and can not be easily re-implemented with the latest version. As long as your ERP vendor delivers updates and new developments, your previous implementation will be removed when upgrading and your IT team will have to customize from scratch again.

In contrast to cloud ERP is continuously upgraded by the provider so you can always use the latest software more sophisticated than previous versions. Due to its cloud-based usage, your previous customization implementation will automatically be merged with the new update so you will not need to re-customize it.

Improved System Performance and Accessibility

Cloud ERP often provides better performance than on-premise. Cloud ERP also offers performance optimizations that can be adapted to your needs. If there is a spike in your business, the ERP cloud will automatically adjust and dynamically assign additional resources to handle the spike.

From the above, cloud ERP can be used as your choice. And one of the existing cloud ERP is Acumatica Cloud ERP which has modules that can support the development of your business ranging from finance, accounting, distribution, manufacturing, inventory and so forth.

Make sure you choose the right ERP system for your business in order to support business development for the better