Is On-Premises Software Going Away in the Next ERP Lifecycle?

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With the recent hype around the online and Software as a Service (SaaS) options, you may think that on-premises ERP software could be phasing out. But the short answer is ‘it’s not going anywhere’. BUT this is a blog and should be longer than one sentence, right? So here’s why we believe on-premises is here to stay, alongside SaaS and online versions:

  1.  Bandwidth Capabilities: Mid to large sized companies just cannot trust that online ERP can hold the amount of data they need for all their business needs. This makes on-premises the ideal solution because you can add another server if you need to accommodate more data as you grow.
  2. Security Concerns: Although software vendors push the fact security enhancements have come a long way for online software, companies are still a bit leery. On-premises calms those concerns because people know it’s in-house and under their control, putting their minds at ease.
  3. The Hybrid Option has its Perks: Pairing up on-premises software with online or SaaS software sometimes creates a match made in heaven. Companies are hesitant to put their mission critical financial data in the cloud, but feel differently about other things, such as customer service notes. If a company has their finances on-premises and their CRM online, it can result in multiple benefits for everyone involved AND it saves money.

Although SaaS and Online ERP are getting more popular and capabilities are enhancing in the bandwidth and security areas, on-premises ERP software has its place in the technology market and is here to stay.

We would love to hear your thoughts about the future of on-premises. Please comment below and let us know what you REALLY think.

By Sikich, St. Louis Microsoft Dynamics GP partner

Sikich is a Chicago Microsoft Gold Certified Partner serving the Midwest specializing in the implementation of Microsoft Dynamics GP, Microsoft Dynamics NAV, Microsoft Dynamics SL and Microsoft Dynamics CRM.

2 thoughts on “Is On-Premises Software Going Away in the Next ERP Lifecycle?”

  1. Totally agree with you. A lot of business right now are really considering to with SaaS. But you cant also count out the On-Premise Software. Its more secured to use this method compared to Saas since you are really in control with on-premis software.

  2. I agree that for a large enterprise, on-premise software will not go away and what you have suggested is an interesting idea.

    However, for small and medium enterprises, cloud will gain ground as there are benefits to this approach:
    - Many clients can share the same database but can customize by client as required which will reduce TCO.
    - collaboration between clients (tenants) can happen to the benefit of all.

    This is what we are aiming to achieve with our software (

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