Comparison of Cloud Based ERP vs. On-Premises ERP Systems

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Comparison of Cloud Based ERP vs. On-Premises ERP Systems

You want complete choice and flexibility when selecting the best ERP for your business. There are benefits and draw backs of  cloud based ERP systems and traditional on-site ERP systems.  Cloud based ERP Systems can have low upfront costs, lower operating costs, rapid implementation and scale-ability.

Cloud based ERP’s also offer improved system availability and disaster recovery. However, subscription expenses will be an added cost over time and security risks and confidentiality concerns have been reported. Also, cloud based ERP systems may be more challenging to customize and integrate with existing IT infrastructure your company already has.

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On-premises ERP systems are more secure and companies may want to maintain control of their data and customer information.  Steamlined operations with the ability to customize a system are top reasons a company would opt for this type of system. Additionally, an on-premises system will allow your company to keep your IT needs in-house. Some organizations may not wish to outsource their IT functions to a third party and would be more comfortable maintaining the system internally. Support and maintenance plans are always an option that a software service provider can offer.

An on-premises ERP may have more functional elements to satisfy the “functionally rich” back office needs of your company.

Your business has unique needs and there is not a one-size solution by any means. Take time to plan and determine the requirements of your ERP system.


References: Benefits and Drawbacks of Cloud-Based versus Traditional ERP Systems

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