When Sticking with On-Premises ERP is the Right Choice

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Cloud-based ERP (Enterprise Resource Planning) solutions are continuing to revolutionize the way many businesses operate. And with good reason, many are choosing to migrate their on-premises solutions to the Cloud. In fact, if your system is still on-premises, you may be in a dilemma about whether to make the move.

However, you should know that Cloud ERP is not “one platform fits all.” While Cloud ERP does offer advantages, an argument can also be made for retaining your system on-premises. Here are some areas to consider:


When your ERP solution is housed and operated on-premises, your team is responsible for the security of your data and processes; everything is kept in-house. If you move to the Cloud, your Cloud provider will be responsible for providing protection, and you will have to trust that they are using the most up-to-date safeguards and protocols. The most successful Cloud providers are those that can ensure the tightest security.

But what if your organization requires specialized security to meet specific regulations or requirements? Or what if your business is such that allowing data to leave your premises is not acceptable? In that case, on-premises ERP and in-house security specialists are the right choice.

Speed and accessibility

Most businesses in the US have adequate and reliable internet, but that may not be the case universally. If you or your clients are in an area with slow internet and spotty cellular data options,  moving your data and processes to the Cloud could cause delays, mishaps, and business disruption. Inability to get to your data when you need it is not an acceptable option.

If you don’t have adequate internet or you deal with other businesses that don’t have sufficient internet speed and reliability, it is probably best to keep your critical business processes on-premises.  If you want to maintain consistency with specific processes while improving mobile accessibility for other tasks, you should consider a hybrid Cloud approach (more on that below).


Customizations and integrations

Customization and integration for cloud-based systems is a complex topic. It has become much easier to integrate Cloud solutions with on-premise solutions or files, as well as to develop custom functionality for Cloud solutions.

However, if your on-premises solution is already highly customized and your integrations are working well for you, you may choose to continue working with your existing platform as long as it meets your needs.

Again, in a case such as this, a hybrid Cloud solution may be what you need for taking advantage of the Cloud’s mobility benefits while maintaining your customizations.

A hybrid Cloud

One solution for businesses that want some of the advantages of Cloud-based ERP, while keeping the above benefits of their on-premises infrastructure, is a hybrid Cloud approach.  The hybrid approach, half in and half out of the Cloud, is also a way to ease toward a full Cloud solution that you may choose if your needs or circumstances change. It’s also a way for your teams to become familiar with a new approach and, perhaps, new software.

Every business has unique needs, and there are countless ways that technology solutions can be tailored to help your organization meet its goals. The important thing is to choose what works best for your situation, your employees, and your business objectives. It can be a bit overwhelming, but a knowledgeable, experienced ERP Partner such as OTT can help you evaluate your needs and goals and choose the right solution and platform.

Want to learn more about on-premises or Cloud ERP solutions for your business?

Contact our experts at OTT and ask about our proven 5-step methodology to assess, analyze, plan, implement, and measure outcomes for your organization’s technology investments.

Please contact Eric Sheehan for more information: ESheehan@OTT-inc.com or 651.262.2622

By OTT, Inc., ott-inc.com






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