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On-Premise ERP vs. Cloud ERP

By February 15, 2020No Comments5 min read
Cloud ERP Vs On-Premise ERP solutions

Technology is changing rapidly with time. There are various options available to businesses now for running their applications. Most companies think that cloud solutions are perfect for them. However, you need to consider many factors before choosing the cloud ERP.

Cloud technology’s popularity is increasing with time. It offers agility and scalability to companies. However, there are many factors that you should consider before migrating to the cloud. This is more important for the companies that are implementing an Enterprise Resource Planning or ERP solution.

ERP system will help you in handling the competition. It will help you in integrating all the different functions in one system. You can keep these processes in the cloud or on the on-premise server. In this article, we are going to discuss Cloud and on-premise infrastructure. This will help you in choosing the right infrastructure for your ERP system.

Definition of On-Premise ERP:

On-premise ERP is the traditional way to use software programs. In this, you need to pay the total cost of the ERP solution. You will receive the full licensing of the system. Thus, you can run it on your company server.

If you are working in the healthcare and financial sector, then this solution is perfect for you. This will help you in protecting your data. Thus, you don’t need to worry about data breaches. Data security is the main reason for using on-premise ERP systems.

Features of On-Premise ERP:

  • Software Functionality: You need to update your solutions. Also, they will install all the security patches in your solution. Due to this, on-premise ERP is less scalable. You need to invest more money in buying more resources.
  • Deployment: The licenses will be installed on your company server. Thus, these installations won’t depend upon your network connection. However, you need the expertise to maintain your servers. Thus, you need to hire professionals for managing your server.
  • Costs: On-premise solutions can be more expensive. You also need to cover other expenses like software maintenance and security management. However, you don’t need to worry about any additional subscription fees.

Definition of Cloud ERP:

In this, you will pay a monthly fee to providers for using their software. You can use the internet for accessing these tools. It is the responsibility of the software vendor to manage data integrity. Also, they will update your tools.

Also, your application will run on an offsite location. Thus, you don’t need to worry about any infrastructure expenses. You can regularly take back up of your important data. Also, you will pay only for the resources that you are using. Thus, Cloud ERP solutions are more cost-effective. If you want to expand your business, then the Cloud solution is perfect for you. You can use cloud technology for connecting with more customers.

Features of Cloud ERP:

  • Software Functionality: If you are using cloud technology, then you can easily build your solutions. Also, it is very easy to add new users to your system. This will help you in scaling up your business. If you want to expand your business overseas, then Cloud ERP is a perfect option for you.
  • Deployment: Technical Deployment is very easy in cloud ERP. Also, you don’t need to hire any experts for deploying your applications. Thus, deployment is also less expensive.
  • Costs: SaaS is a more cost-effective method when compared to the on-premise solution. Most companies prefer paying monthly payments for their technology needs. This will help you in creating a perfect IT budget. Also, you can save a lot of money on IT management.

Factors to consider before choosing the ERP solution

There are many different factors to consider before choosing an ERP solution. These factors will help you in selecting the right ERP for your company. Most companies think that only costs are an important factor. However, there are many more factors that can affect your choice.

  • Bandwidth: You should evaluate the capability of your network infrastructure.
  • Future needs: Scalability is another factor that you need to consider. If you are thinking to expand your business, then Cloud ERP is perfect for you.
  • Staff: If you already have an IT department, then on-premise ERP is a good option for you.
  • Budget: This is definitely the most important factor for most companies. Many people prefer paying a monthly subscription. If you are using cloud ERP, then you can easily create your budget.
  • Resource Utilization: Cloud ERP is a clear winner in this factor. This will provide more flexibility to your enterprise. Thus, you can easily access your data.
  • Implementation: Your cloud ERP can have single-tenant or multiple tenants. This can increase the complexity of the implementation process. But, it will protect your data from attackers. Thus, it is a good option for increasing your data security.
  • Control: This is going to be an important factor for many companies. If control is more important for you, then on-premise solutions are perfect for you. There are many sectors where data security is more important. Thus, it is best to use on-premise ERP solutions. It will ensure that you don’t depend on your internet connection. If you have a slow internet connection, then you can’t access your cloud ERP.


The final decision will depend on your organization’s needs. If you want more control, then on-premise ERP is better for you. There are many advantages to using cloud ERP solutions. Thus, costs are your main priority, and then you should go for cloud technology.

If you have a large organization, then on-premise ERP solutions are perfect for you. You already have a large infrastructure for such solutions. However, cloud software is perfect for small and medium-sized businesses. They will help you in saving a lot of money.

Every successful enterprise needs a healthy data ecosystem. You must have a scalable and reliable infrastructure. This will help you in beating your competitors. If you want more information regarding ERP solutions, then you can contact Bleuwire.

Contact us today to learn about Bleuwire™  services and solutions in how we can help your business.