An on-premise ERP is installed and operated from a company's own servers and computers. A cloud-based ERP is hosted by the software vendor and accessed by navigating to the provider’s website. You can then view and manage everything via web application.
On-premise ERP systems can be more expensive to set up and maintain than cloud-based ERPs, but they offer more control over data security and privacy. With an on-premise system, you would need an in-house maintenance team to keep your systems running.
Cloud-based systems are typically more scalable and easier to set up and use and have more flexible pricing plans than on-premise ERPs. Also, the amount of time needed to set everything up and get familiar with the software is a lot less compared to on-premise systems. What's more, with a cloud-based system, all the batches and updates are taken care of by the service provider, which can help to reduce downtime.