On-Premises or Cloud: Which ERP Works for You?

It’s no secret that an effective, flexible, function-rich ERP (Enterprise Resource Planning) solution is the key to the productivity and success of many businesses. In years past, there was only one choice of ERP deployment, and that was on-premises. Now that cloud computing has taken the business world by storm, you might wonder if on-premises ERP is still your best option.

According to an article on Forbes.com, organizations worldwide are showing increased confidence in moving their business processes to the Cloud.

Still, despite its popularity, versatility, and noticeable advances, Cloud ERP is not for every business

Evaluating your ERP needs

There are several factors to take into consideration if you are weighing the pros and cons of cloud-based ERP vs. your existing on-premises system:

You’ll want to consider your organization’s size and scope, the makeup of your customer base, your regulatory responsibilities, your resources for a possibly large or complex data migration, and the implications for your IT team. Your move to the cloud will be only as effective as the people and tools you have in place.

Advantages of moving to the cloud

Computing in the cloud can afford businesses increased agility. Cloud-based solutions can easily be configured to the unique needs of your company, increasing your options and opening the way for more creative approaches to your business processes. For companies who are in a financial position and have the time to migrate their processes to the cloud, new opportunities can open up. Startup businesses will appreciate the lower initial cost of cloud ERP. And for small to mid-sized businesses, the savings in capital expenditure and operational costs can give you more to invest in your growth.

The cloud has greatly matured in recent years. Solutions have been built from the ground up to operate optimally in the cloud. Advanced data security and cyber security help your team save time, reduce risk, and work more effectively. With access to IT devices and programs formerly available only for larger organizations, small and mid-sized businesses can now become more competitive in the marketplace.

With cloud ERP, companies can also enjoy a wide variety of options for IT solutions, choose solutions that scale well, and have their choice of service providers. The management provided by an off-site team lends an added level of confidence to IT infrastructure. And with the cloud and cloud provider guarantees, businesses often experience considerably less downtime.

Advantages of remaining on-premises

As you decide whether to migrate to the cloud or keep your ERP solution on-premises, it will be wise to perform a risk analysis for your business. Take into account the collaboration needs of your firm, as well as financial operations, training operations, and auditing.

If yours is a heavily regulated industry, it may not be beneficial to migrate all of your operations to the cloud. Also, if your company has more than five hundred employees, the size and scope of a migration will be more complex.

Of course, you’ll also have to consider the financial implications of a move. The cost of switching to the cloud will vary greatly depending on the nature of your business, how much infrastructure you require, and whether you plan to move completely to the cloud or take advantage of a hybrid option.

Choosing a partner that will lead you through the process and offer a cost-efficient solution is essential. Your partner should meet with you to facilitate the planning stages and design a solution that accommodates your present business and also your goals for the future.

If you are not fully prepared for a move, you may decide that it’s best for your company to maintain an on-premise solution. Either way, a competent, experienced partner can help you get the most value from your ERP solution, be it on-premises or in the cloud.

If you are considering a move to the cloud and would like to know more about its implications for your business, contact our experts at Appsolute Consulting Group.
By Appsolute Consulting Group, appsolute.com

1 thought on “On-Premises or Cloud: Which ERP Works for You?”

  1. The advantages of having a Cloud-based ERP is significant compared to On-premise ERP because of its cost and efficiency. I have been using NetSuite Philippines for a year now, the software is reliable and their after-sales support is hospitable.

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