Cloud v/s On-premise ERP Software – Which One’s the Best?
Tags: productivity, erp, clouderp
Published: 2020-09-21 10:32:26

Enterprise Resource planning software has been helping the emerging businesses with the streamlined and managed business processes since a while. However, according to some recent stats, it seems like the ERP vendors and [ERP service providers](https://www.uneecops.com/erp/erp-services/) have doubled the return on investments in Cloud-based solutions and SaaS (software as a service) solutions over the last decade. The reason accounting for the same is the increasing trend for Cloud solutions for the benefits that it renders. 

With increasing demand for accelerated processes in order to decrease the time to market and gain greater agility and efficiency in managing and analyzing business data, there has been a drastic shift from traditional [ERP systems](https://www.uneecops.com/erp/) to the Cloud-based ERP systems.

Yet, there exists the never ending debate on on-premise v/s on-Cloud solution. Both the solutions have their unique set of advantages and both possess the equivalent efficiencies. However, to get you a clear understanding on the same, we’ll compare the two ERP software based on definite criteria and post that will learn how to make the most of the software by implementing it right.

Let’s get going…

#Cloud ERP Solution v/s On-premise ERP

**Ease of Installment:** On-premise ERP systems as we know, require a significant capital investment in-terms of infrastructure, hardware maintenance and IT support to look after the smooth functioning of the system. 
Cloud ERP however offers greater ease of installment as there is no additional infrastructure and hardware related issues involved. The software is deployed on Cloud in close monitoring of the support team of the Cloud hosting service provider. Cloud ERP is indeed a relief to the companies that lack skilled IT teams in the premises. 

**Ease of Accessibility:** Cloud ERP system is operated via the internet, thus, it enables users to access business information anytime and anywhere they wish to, simply by browsing. This however is not possible with the on-premise system. 
The best part about on-premise ERP is that though it restricts the remote access to information, but, in case of internet/connectivity issues, on-premise systems continue to function smoothly as no internet is required to operate the same (within the office).
 
**Cost of Purchasing:** Cloud ERP software doesn’t require infrastructure and hardware maintenance cost, however, it does involve data transfer and migration cost. But, the ease of switching the licenses in Cloud ERP software is comparatively easier than the on-premise systems. On-premise systems work on a fixed license package with defined number of users, however, scalability may be possible in some cases but the ease to scale is more in Cloud-based ERP software.

**Ease of Customization:** While it is a fact that you own the on-premise system and thus, it is fairly possible to customize the software as per your requirements, [Cloud based ERP software](https://www.uneecops.com/erp/sap-business-one-cloud/) can be customized too. Although the level of personalization may differ, you may also avail the add-ons provided by the vendors to add more functionality to the software.

Having learnt the difference between the two ERP systems, it is quite clear that though on-premise systems are no less, yet Cloud ERP software offers some unconventional benefits to the users that are otherwise not possible with the on-premise ERP systems. 

Now, to leverage the benefits offered by Cloud ERP software, it is important to get it installed correctly. To help you with the same, here are some of the important tips that you must consider while carrying out your Cloud ERP implementation. 

##Tips to Remember for ERP Implementation

**Develop a Concrete Implementation Strategy**

Each implementation is unique to the company type and is based on their specific requirements. Thus, there’s a need to prepare a roadmap to the implementation process addressing the common issues that might arrive during the process. Important things like data migration, integration with the other platforms and add-ons must be considered beforehand. 

**Unite your Resources and Cloud Hosting Service Provider**

No one can relate to the challenges as much as the users themselves. These users are the best resources to be approached while working on the customization of the solution. The solution then developed would then be able to live up to the expectations of the users and be capable of managing the daily challenges.

**Be Open to Implement the Change in the Organization**

Cloud ERP software is implemented to mitigate the challenges related to business management, but it does create some changes in the business processes as well. Thus, you need to be open to adapt the changes and train users to learn the new modes of working. The new change will certainly help you grow your business and embrace the journey towards success. 

That’s all for the important tips to remember apart from the regular ones on selecting the right Cloud ERP software. Hope this information on Cloud-based ERP software was useful for you and will help choose the right ERP deployment method.