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Computers and Technology

Cloud v/s On-Premise ERP, Which One you Need?

The longstanding debate on on-premise or in Cloud ERP software is not over yet. It has been more than 25 years now since the internet has come into existence, yet the leaders are seen debating over which system to deploy or which one to be relied on. Both the solutions have their particular set of pros with no cons. However, there are some added benefits that each of the solutions has over that makes it a perfect fit for different types of companies.

So, if you too are struggling between the two thoughts of which solution to buy or whether to move the existing solution to Cloud or not, then this blog is for you. We will here discuss a few things that are worth noting to make a decision. Although, the ultimate decision rests in your hand because each company and its requirements are different, and their expectations with the ERP software are different too; yet, the blog will help you in many ways.

So, get set to make your mind.

  • Time of Deployment

Where traditional on-premise systems can take around more than a year to fully get deployed, Cloud based solutions can be deployed easily and are ready to go live within three to six months. This not just saves time of deployment but also the cost as in Cloud ERP software, there is no hardware and maintenance costs involved like that in on-premise systems.

  • Customization

The extent of customization is more in on-premise systems than in on-Cloud systems. However, the overall customization process can be complex and expensive, plus, if you ever need to reverse the change or add something new to the existing on-premise system, you often have to change the entire set up to incorporate the nominal change. Cloud ERP software, however, are easier to customize and are flexible to adapt to any further changes in the future. 

  • Data Control 

Cloud Solution is provided by either the ERP Software company or the third party cloud hosting service provider, in either of the cases both the cloud and the company data is managed by the other company and not you. This somewhere limits the data control on the business information. However, some extent to personalization is also provided, but that could not be matched to on-premise systems.

Although, this customization can be beneficial for you in multiple ways like adapting to the new changes made in the functionality of the system, reducing the cost of the IT maintenance and hardware of the system, etc. 

  • Unification

ERP software is all about the integration and unification of the core business processes. However, while using the existing on-premise ERP software, adding a new system could be troublesome. The IT team probably has to redesign the entire integration system to incorporate one system.

This is however, more easier to do in a Cloud based system, as everything is handled by the Cloud hosting service provider, which gives enough flexibility to add/remove applications from the software. Also, implementing the updates in Cloud based ERP software solution is much easier than in its on-premise counterpart. 

So, these were the major differentiating grounds for on-premise and on-Cloud ERP software, hope this information was useful for you and you have probably made your mind about the system.

Now, to help drill down your search in various ERP software companies for the best possible solution in these categories, we would recommend SAP Business One for on-premise solution, and for SAAS, you can probably go for SAP Business ByDesign, which is a complete cloud-based, affordable and efficient solution for all your business requirements. 

Raju Shahi

Raju Shahi is a tech blogger and digital marketer with several years of experience in the industry. He likes to help businesses stay informed and up to date with established and emerging technologies like ERP, IoT, AI, Cloud, and others...

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