ERP (Enterprise Resource Planning) systems are classified into three types: On-Premise ERP, Cloud-Based ERP, and Hybrid ERP. On-Premise ERP is installed on a company's servers and managed by its IT staff, offering greater control but often resulting in higher maintenance costs. In contrast, Cloud-Based ERP is hosted on the vendor's servers and accessed via the internet, providing flexibility, scalability, and lower upfront costs. Lastly, Hybrid ERP combines both models, allowing companies to keep some processes in-house while utilizing cloud solutions, thus balancing control and flexibility.