Cloud vs On-premise ERP systems
One of the crucial decisions you will have to make when choosing a new ERP system will be whether to go for cloud ERP or on-premise.
Cloud-based ERP systems are becoming more popular. Almost all major ERP companies offer a cloud version. But still, it was normal for a small business to opt for traditional ERP, due to many reasons. It is entirely up to you to choose one between cloud or on-premise ERP.
This article will make it easy for you to choose one between cloud or on-premise ERP.
Pricing
In the case of cloud-based ERP, the software is hosted on the vendor’s server and can be accessed through your web browser anywhere in the world.
When it comes to on-premise ERP, the software is installed locally on your computer.
Normally, a cloud ERP is priced with a monthly or yearly payments, along with yearly charges for training and supports.
On-premise ERP also comes with yearly charges for support and training, but it is generally charged a one-time payment. This is also dependent on the number of users using the system.
Therefore, on-premise systems are costly when compared to cloud ERP systems.
Apart from the price, when you buy a lifetime license for an on-premise ERP, you are stuck with it for a few years at least. Monthly or yearly subscription plans make it more comfortable for you because, in the future, if you want to move to something different, you are free to move.
Security
Security is among the major concerns raised by business owners when considering cloud ERPs. This has changed in the past few years and buyers have become less skeptical about it.
Most of the ERP vendors have strict policies regarding your data. If you still have concerns, you can consider hiring a cyber-security and run an audit.
Most of the cloud servers have a backup plan enabled so that you don’t have to worry about losing your valuable information.
When it comes to data security at on-premise ERP, the business owner has full responsibility for data security. Therefore, businesses need to follow strict security protocols.
Customization
In terms of customization, on-premise ERPs are less customizable, in general. Because most Cloud ERP systems follow business practices and customization is not required.
Whereas in on-premise ERP, customization possibilities are very less. Most of the on-premise ERP systems come with the basic business processes which are enough for a small business.
However, if you need a customized solution for your business, it is best to go for a cloud ERP solution.
ERP Products like StackFX can be customized according to your needs and is loved by many business owners for this particular reason. Most of the customization can be done without changing the code which saves a lot of time and additional costs.
Implementation time
As you don’t have to set up a new network or hardware at your business for implementing a cloud ERP, this usually takes less time. On-premise ERP will require you to add new hardware and additional human resources for setting up.
Even when you need some customization in the ERP, it will take more time since the system cannot be accessed remotely.
You will need a good broadband connection at your business to operate on a cloud ERP. Since it is common for businesses to have this, this doesn’t have to be a concern.
Integration and stability
Integration with third-party applications is one of the major concerns while choosing a new ERP system. When you choose an On-premise ERP, you have to pay more attention and spend more time on this integration process. You also have a higher chance of breaking the system if you don’t do it properly.
Whereas integration in cloud ERP will be done by the service provider and you won’t have to worry about any of the procedures.
Scalability is another thing to consider. Your ERP system must be flexible with the eventual growth of your business. Cloud ERP systems offer great flexibility no matter what the number of users or processes are.
