On-premises, or on-prem, ERP solutions get a bad rap. With modern cloud systems available that offer greater flexibility, accessibility, and scalability than on-premises ERP, it’s no wonder that so many organizations are making the switch to the cloud.
Cloud ERP also comes with a more affordable implementation price, which might make you wonder: why would anyone opt for on-premises ERP?
Before discounting on-prem entirely, let’s review what on-premises ERP is, its benefits, and why some organizations make the switch to the cloud.
What is On-Premises ERP?
On-premises ERP systems are installed and run on the premises of an organization, rather than being hosted in the cloud or on a remote server. The organization is completely in control, and responsible for, its own data, rather than outsourcing some of that responsibility onto the vendor.
Advantages of On-Prem
On-premises ERP systems aren’t inherently bad. In addition to offering total control over one’s data, they have the potential for high levels of customization, and can be designed to be very secure against security breaches.
While some ERP consultants only support cloud ERP, our team at Datix knows how to handle on-prem solutions. As a one-stop shop, we can support you with your data management, ERP infrastructure, security needs, and more. Learn what Datix can do for you.
Why On-Prem Gets a Bad Rap
Although there are benefits to on-prem ERP systems, they are often treated as the software of the past by modern manufacturers. This viewpoint has some valid points, and a few misplaced biases supporting it.
Many companies spend far too long holding on to legacy ERP systems that no longer support their organization, and these systems are often on-premises setups. Legacy ERPs lack reporting ability and data transparency, making it nearly impossible to understand how the organization is doing, manage inventory, spot problems, or make informed decisions.
Because legacy ERP systems are so cumbersome, firms assume that any similar system will be just as bad, so they avoid on-premises in the future. Modern on-prem systems shouldn’t be judged blindly by their legacy counterparts, but it is true that there are some fundamental challenges that come with any on-premises setup.
On-prem ERPs are less easy than cloud ERPs in many ways. With a cloud ERP, the vendor takes care of a lot of the work when it comes to data management. While on-prem ERPs have a lot of security protection because they are a closed system, your IT team or ERP partner still needs to be responsible for actively monitoring the system for threats and staying aware of the latest security risks. In addition, updates could become a major headache with an on-prem setup if you employed customizations because these are apt to break and require reimplementation. The fact that on-premises ERP systems have these challenges, in addition to a large upfront cost, usually makes businesses look elsewhere when they need a new ERP.
Should you Switch to the Cloud?
Certainly, there are a lot of advantages to cloud ERP solutions. You can access your system remotely through mobile devices like a phone or tablet, experience the latest ERP functionalities, and update or scale your system easily. There are a lot of great attributes to cloud ERP, and it is often less expensive upfront than an on-prem implementation, but that doesn’t always mean it is the ideal setup for your organization.
Every organization is unique and has different priorities. If you want to have complete control over your system and your data, and ensure you have the safest solution possible, then on-prem may be right for you.
If an on-prem setup seems like too much work and you would rather gain the benefits of cloud ERP, then a cloud implementation is probably best. You can even go with a hybrid ERP setup if you wish (compare on-prem vs. cloud vs. hybrid ERP here).
No matter what you choose, Infor CloudSuite Industrial (SyteLine) is a flexible ERP that can be implemented as either an on-prem or a cloud option. In either case, you get to utilize a manufacturing-specific industry solution that offers data transparency, an intuitive shop floor interface, and extensive inventory and vendor management. As an Infor Gold Channel Partner, we offer Infor CloudSuite consulting or other ERP services to those looking to make a change.
An ERP consultant can make the transition to a new system easier. With Datix, we offer a business-first approach to each of our clients, meaning we take the time to understand their needs before recommending a solution to them. Discover how to maximize your outcomes with Datix.
Wrap Up
No matter what ERP setup you select, it’s better to have help from a trusted consultant. The experts at Datix can support you every step of the way throughout your ERP implementation so that you stay on time, on budget, and achieve your goals. Schedule a call to take the next step with your ERP.
About Datix
With over two decades in the industry, Datix is the ERP consultant of choice for manufacturers and distributors. We believe in “being the best with the best” and look for partners who match our commitment to solving real issues and doing what it takes. Our in-depth analysis of our clients and their business needs allows us to maximize their software investments to the fullest.
