The Advantages of Cloud and On-Premise ERP Systems

The basic difference between cloud and on-premise ERP is that on-premise ERP is installed locally on the company’s hardware and managed by an in-house IT team. On the other hand, cloud ERP is deployed on vendors’ data centers and is provided as a service.

Cloud ERP:

Users pay on a subscription basis to use this ERP model. And cloud platform allows you to access business data from anywhere, through any device, and at any time, given the internet connection on the device. Data is hosted remotely and its security is well taken off by the vendor.

Benefits of Cloud ERP:

• Cloud ERP gives access to real-time insights
• Lower operating cost
• Scalability: can be scaled according to the needs of the organization
• It gives you the flexibility to work from anywhere, given the internet-connected device
• 24/7 service support

On-premise ERP

While purchasing on-premise ERP, the company purchases the software license as per the number of users accessing the system. It will be deployed on your company’s hardware and servers and managed by the internal IT team. Software licenses are usually one-time purchases.

Benefits of On-premise ERP

• Data control is in the hand of your internal IT team
• Vendor expectancy is low
• On-going cost is limited
• Customizations can be done easily

Choosing the right cloud ERP for your business needs time, effort and investment. ERP deployment model is one of the important factors to consider before evaluating multiple options. So, what’s your take? Cloud vs on-premise ERP?

Original Source: medium.com