Reliability is one of the key factors to consider when choosing an ERP solution for your business. But how do you measure and compare the reliability of cloud-based and on-premise ERP systems? In this article, you will learn about the main aspects of reliability, the advantages and disadvantages of both deployment models, and some tips on how to assess and improve your ERP reliability.
Reliability is the ability of a system to perform its functions consistently and accurately, without failures, errors, or downtime. Reliability is essential for any ERP system, as it affects the quality of data, the efficiency of operations, the satisfaction of users, and the profitability of the business. Reliability can be measured by various indicators, such as availability, performance, security, scalability, and maintainability.
The reliability of ERP systems can be measured by uptime, data backup, and disaster recovery performance. Cloud ERP often offers high uptime due to redundant data centers, while on-premise systems rely on local infrastructure, which may be less reliable. Cloud solutions also provide automated backups and disaster recovery, while on-premise solutions require manual setup, making cloud ERP more reliable in these aspects. However, specific reliability metrics should be tailored to the organization's unique needs and constraints.
Reliability goes beyond the promise of 99.9% of uptime, or ease of update, or fast processing. Reliability is about the consistent delivery of what was agreed, and how fast the system recovers when a failure happens (because we know it happens). It is a common practice of the implementation companies not to provide warranty on customizations developed to the ERP after a version update. That has nothing to do with availability, performance, security, scalability, or maintainability. It's just something extra that you paid for and the other part willingly accepted to do for a fee on a "reliable" system, following certified procedures, yet there's no way to guarantee that it will work after the system gets updated. Where's the reliability?
Reliability is a main factor which will have a huge impact on the credibility of the system in front of the business users and other stakeholders.
Reliability in terms of support must be 2-fold - internal and external. Having an internal resource who can perform troubleshooting is a proactive strategy to ensure reliability. Of course, a firm commitment on the timeliness and availability of resources must always be obtained from the ERP partner.
Cloud-based and on-premise ERP systems have different reliability characteristics, depending on how they are hosted, managed, and updated. For example, cloud ERP systems are usually more available than on-premise ones, as they are hosted on multiple servers and data centers with backup and recovery mechanisms in place. Additionally, cloud ERP systems can offer better performance than on-premise ones due to the resources and capabilities of the cloud provider. In terms of security, cloud ERP systems can provide higher security than on-premise ones, as they are protected by the cloud provider's security standards. Moreover, cloud ERP systems are more scalable than on-premise ones as they can easily adjust to changes in demand or usage. Finally, cloud ERP systems are easier to maintain than on-premise ones as they are updated and upgraded by the cloud provider without requiring any intervention from the user.
While the cloud infrastructure availability should be better as they are more scalable to demand, but be aware of the release cycles. Rapid release cycles can mean decreased reliability.
The cloud based ERP mostly comes with predefined business process to which the business users needs to be ready to adjust the processes.
The advantage of "auto" upgrades can be challenging to ERP users that require customization. Often the upgrades are not as fully vetted as legacy on prem solution when the development and release are in full control.
To assess your ERP reliability, you need to monitor and analyze your system's performance and functionality, using various tools and methods. Reliability metrics such as uptime, downtime, error rate, response time, throughput, and availability ratio can be used to track and compare your system's reliability over time or against industry standards or benchmarks. Reliability testing is a process of testing your system's reliability under different conditions and scenarios. This can help identify and fix any reliability issues or risks before they affect your system's functionality or quality. Reliability audits are a process of reviewing and evaluating your system's reliability based on best practices, guidelines, or frameworks such as ISO 9001, ITIL, or COBIT. This can verify and validate your system's reliability and help identify and implement any reliability improvements or recommendations.
For reliable ERP performance, you need to implement and adhere to some best practices and strategies. Select an ERP solution that meets your business needs and goals, taking into account the size, complexity, industry, functionality, compatibility, cost, and value. Additionally, decide whether a cloud-based or an on-premise ERP system is more suitable for your business, considering the availability, performance, security, scalability, maintainability, trade-offs and risks of each model. Partner with a reliable and reputable service provider that can deliver and support your ERP system. Verify their credentials, reputation, track record and service level agreements. Finally, keep your ERP system updated, upgraded and optimized by performing regular maintenance activities such as backups, patches, audits and tests. Apply any reliability enhancements or fixes that are available or recommended.