May 4, 2020

Difference between On-premise & Cloud ERP Solution?

ERP stands for Enterprise Resource Planning. It refers to software that automates and integrates company’s core business, enabling help them focus on effectiveness and simplified success. ERP is used to plan and manage all the core supply chain, manufacturing, services, financial and other processes of an organization. ERP software can be used to automate and simplify individual activities across a business or organization, such as accounting and procurement, project management, customer relationship management, risk management, compliance and supply chain operations.

There are basically two types of ERP Solution available

On-premise ERP – On-premise enterprise resource planning (on-premise ERP) refers to a company’s decision to source ERP software in-house and maintain it at a physical office, rather than ordering it for delivery over the Web or using vendor-supplied, hosted ERP systems. It is implemented in-house and maintained in a physical office space. On-premise isn’t accessed through the internet and cannot be used outside of a physical work space. On-premise ERP systems usually require large upfront and ongoing investments to purchase and manage the software and the related hardware, servers, and facilities necessary to run it. If your company doesn’t have a large or experienced IT staff, you may also have to also invest more time and money in additional personnel and train them. Even more importantly, on-premise systems require that your IT team spend a significant amount of their time and budgets ensuring your system is up-and-running when you need it, including maintenance of hardware, server rooms, and more. When its time for your ERP system to be upgraded, IT must then redeploy the system across the various users’ computers and re-implement various customizations and integrations that your business installed on your previous software.

Cloud ERP – Cloud-based software is hosted on the vendor’s servers and accessed through a web browser. For cloud-based ERP, initial costs are typically much lower because you simply implement the software to your requirements and then access it through your computer’s internet connection. The cloud ERP provider hosts and maintains all of the IT infrastructure for you, ensures the system is always running, that the data is secure, and that product enhancements are rolled out painlessly to your solution without breaking your previously implemented customizations. Ultimately, this all allows your IT resources to focus on innovating and helping grow the business more effectively, rather than spending a disproportionate amount of their time on maintaining and managing your on-premise systems. Cloud ERP also offers a predictable, pay-as-you-go subscription model that can make cash flow management and planning much easier.

Contributor – Author is an experienced Technical Content Writer who writes on wide variety of topics including IoT, AI, ERP, Cloud Computing & more. You can also hire him for Amazon Copywriting Services.