One of the most integral steps in choosing an ERP system for any business is deciding between traditional on-premise and cloud-based deployment.
As its name implies, an on-premise or on-site ERP system is installed locally on an organization’s computers and servers and subsequently managed by company IT professionals. Cloud ERP systems, meanwhile, store all software and related data on the internet. In this case, it’s the ERP vendor who manages the system, and customers can access it through web browsers or dedicated apps in turn.
Understanding the advantages and disadvantages of each ERP deployment model is a good place for business owners to start discerning the optimal choice for their company. Read on for a detailed rundown of the pros and cons of cloud-based and on-site ERP.
Pros and Cons of Cloud ERP Systems
Cloud ERP systems are currently enjoying an unprecedented rate of adoption among businesses. The following benefits, in particular, mostly account for the mounting popularity of cloud solutions:
These many benefits don’t mean a cloud solution is the right choice for every company, however. Certain drawbacks may cause certain businesses to reconsider choosing a cloud-based ERP system, such as:
Pros and Cons of On-Site ERP Systems
On-site systems were once the default ERP option for businesses the world over, and many companies prefer them to this day. Features of these systems that generally find favor with businesses include:
While some companies may view certain features of on-premise systems as highly beneficial, others might see the same features as major drawbacks. The following challenges, for instance, are heavily associated with on-site ERP:
At the end of the day, the right ERP deployment model for you will depend on the size, industry, and specific needs of your business. If you’re unsure which system is the better choice, consider seeking advice from a capable partner like ANSI, one of the foremost business solutions providers in the Philippines. Contact us today and we’ll happily help you elevate your enterprise with state-of-the art ERP systems.