Traditionally, ERP solutions have been deployed “on-premise”, that is at the site where they will be used. Thanks to the growing popularity and availability of the cloud, you now have a choice. You can choose to have your ERP solution available “on-demand”, in the cloud. There are differences and advantages and you will want to consider which deployment is best depending on the size, type and scope of your business.
With the traditional on-premise ERP solution, you own the infrastructure, hardware and operating system, as well as the software and database servers. You also are responsible for maintenance and support. You provide the IT expertise to keep it all functioning for your users and you decide when and if you want to pay for upgrades.
Benefits of On-Premise ERP
Some businesses prefer the benefit of having their ERP on-premise. That allows you to invest the money at the start as a capital expenditure. Ongoing payments will be for maintenance and IT support. For large companies with many users, this initial expenditure may not be a problem. Also, with on-premise ERP you have total control over how your system is managed, how it is implemented and when it is upgraded.
On-demand ERP refers to various cloud ERP subscription models, the most popular being software-as-a-service (SaaS). With on-demand, you do not shoulder the expense of infrastructure and hardware and you are not responsible for an IT team to keep everything operating smoothly. You will have a monthly subscription and updates will be automatic.
Benefits of On-Demand ERP
Some businesses prefer the benefits of having their ERP “in the cloud”. Cloud ERP may not require any capital expenditure to get you started. The monthly hosting fee will be considered an operational expenditure which is often more affordable at the beginning for a start up or small or mid size business. Cloud ERP is also mobile, meaning that it can be accessed from anywhere that there is an internet connection and on a variety of personal devices. You do not have to worry about managing your system as new releases and upgrades are included in the service.
Which ERP Model is Right for Your Business?
Each business, even within the same industry, is unique. So your choice of ERP deployment needs to be well suited to your particular needs and considering your resources. We can help you to evaluate your options.
At Socius, we have had extensive experience with both on-premise and on-demand ERP deployments. We have developed a tool to aid you in determining which option is the best fit for your company. Just answer a few questions and we’ll give you an
To learn more about ERP deployment options,