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Difference Between On-Premise and Cloud ERP Solution

December 10, 2021

Difference between on-premise & cloud erp solution

Do you want to gain a better purview over your business operations? You need better Enterprise Resource Planning or ERP solutions. Both SAP business one & SAP S/4 HANA can provide you with it. But it becomes necessary to decide whether you should opt for on-premise deployment or a cloud-based option. Both SAP business one & SAP S/4 HANA provides excellent functionalities. For instance, better evaluation of company financials, better workflow management with optimal HR capabilities. Besides, it also has better inventory management. However, before you select any ERP solutions, think. You will need to evaluate whether you need to deploy an on-premise or as a cloud-based solution. Some of the differences between an on-premise and a cloud-based ERP solution are as follows:

1. Better accessibility

When you install SAP business one & SAP S/4 HANA, your business managers must have continuous access to the systems. Accessibility is essential to ensure the smooth functioning of your business organization. If you need to make any changes to the workflow and make any upgrades, you can do it as per your requirement. Thus, cloud-based ERP solutions offer greater accessibility. Your business managers can easily access the solution from mobile devices. This is essential if you want to have a better purview of the daily business activities of your business organization. However, the on-premise solution has limited accessibility compared to the cloud-based solution. Your business managers will have to be in the presence of the servers to make prompt business decisions. This can lead to delays and can affect your business operations. If you are looking for increased accessibility, you will have to opt for a cloud-based ERP solution.

2. Customized solutions

When looking for customized solutions designed for your company, you should choose an on-premise ERP solution. Designing an on-premise ERP solution is necessary after you posited your company requirements. But a cloud-based ERP is designed based on the industry requirements. The upgrades are also carried out based on the industry changes. This can prove to be problematic in the case of data management. Opt for an on-premise ERP solution. Why? If you want to secure your data and ensure that upgrades are carried out only according to your requirements. Do you want to stay updated about the latest changes in the ERP solutions? Or want to ensure that your SAP business one & SAP S/4 HANA solutions are as per industry standards? You will need to opt for cloud-based ERP solutions.

3. Deployment speed

Both cloud-based and on-premise ERP solutions have a certain deployment speed. This is because you will need to provide your requirements. Your service provider will develop the ERP tools as per your requirements. However, the on-premise solutions take longer. The reason being the systems needs upgrading. The hardware requires setting up at a center when it comes to deployment speed. Therefore, you will have to think of procuring and upgrading the entire IT infrastructure. When it comes to the cloud-based ERP solution, these do not require any infrastructural changes. As a result, you do not need to make any installations.
Along with that, scaling in the cloud-based ERP solutions are pretty easy. As your business expands, you can choose to add more tools to the platform. This will make it easier for you to carry out business operations. You will also gain better purview of your business. In addition, you can easily upgrade the cloud-based ERP solutions. As a result, you do not have to worry about data loss, data migration, and security threats.

Both cloud-based and on-premise ERP solutions have their specific advantages and disadvantages. During deployment, the essential thing that you should consider is your financial investment. The on-premise ERP solution will require significant financial investment on your part. Compared to it, a cloud-based ERP solution requires much less investment. However, you will get a complete purview of all your business operations. You will also get greater accessibility, excellent security, and complete flexibility to add more users to the system. In addition, you can train more employees and continue to add to the system as your company expands. Thus, depending upon your requirements and the investment you are prepared to make, you should choose whether you need a cloud-based ERP solution or an on-premise one.

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