Collaboration and coordination of business processes through ERP software is the key to staying competitive these days. While functionalities remain the same, many purchasing organisations struggle to make a choice of choosing between an on-premise solution or offloading business critical functions to the cloud. For every business trying to make a decision of deployment requires understanding the fundamental differences and each difference comes with a whole host of reasons that justifies going with on-premise or cloud-based software.
This article provides you different pros and cons of each ERP deployment type to guide through the decision.
On-Premise Solution
On-premise solution is a traditional deployment method where servers are connected, and operating systems are installed along with other hardware for a one-time license fee. It is operated within the company’s datacenter maintained by the IT department. It is considered as a company’s capital expenditure.
| Pointers | Pros | Cons |
|---|---|---|
| Cost Model | Cloud options give an advantage of predicting costs and is a much cheaper investment for a company.It does not require any additional hardware installation, hence cost savings can be made. . | Over the course of time, the cost may be up more than an on-premise solution. |
| Security | Service provider offers greater stability as he retains all the security of a company’s data.He also provides continuously timely updates for better protection. | Security is expensive and has to be maintained 24×7 which some providers fail to provide. |
| Customisation | – | Cloud solutions comes with very few customisation options. |
| Compliance | Cloud providers have a dedicated team of compliance who constantly meet and maintain obligatory laws and regulations. | – |
| Implementation | It comparatively takes less time to implement as a result of less customisation. | – |
Cloud Solution
Cloud solution is one that a service provider offers within their datacenter with a mandatory internet connection and are contracted for a certain time-period maybe monthly or annualand customised specifically for an individual need. It is usually considered as a company’s operating expenditure.
| Pointers | Pros | Cons |
|---|---|---|
| Cost Model | It requires only one-time investment and zero additional subscription costs. | High upfront investment can be difficult for a company to manage.It involves paying for hardware installations and on-going support and future hardware upgrades |
| Security | Since security is critical; it provides more infrastructure control and data-security. | – |
| Customisation | On-premise solutions offer maximum customisation options of adding plug-ins as one may see fit. | Customisation over on-premise method can delay overall implementation. |
| Compliance | – | Since it is run by a company itself, strict compliance with all the laws and regulations has to be taken care of. |
| Implementation | An organisation can have complete control over implementation process. | Normally, on-premise implementation takes longer than the other type. |
From a cost standpoint, SMEs with tighter budgets can leverage cloud-based ERP services and get enterprise-class solutions. The cloud- based will also provide scalability as your business expands. The traditional on-premise option stores data internally on a local server and is perceived to provide added security with business intelligence housed behind an internal firewall. Talk to our expertds to-day to help up choose what the best option is for your business.Give us a call on +44 – (0) 203-872-5140 or e-mail at info@silvertouchtech.co.uk to get a smart and affordable IT solution dor your business
SAP provides both on-premise and cloud-based deployment options for SAP Business One. Get your free demo and an e-book on Business Management Made Simpler.
