October 5, 2014
Whether to go for the cloud-based or on-premises ERP solution is the question which most people ask? Erpisto ERP is getting popular day by day as different vendors provide the best and sophisticated alternatives as compared to the on-premises ERP implementations. Cloud-based ERP offers plenty of advantages and only few disadvantages which makes it a perfect choice for most businesses. Small and medium sized businesses which don’t have many resources to support conventional on-premises solution can make best use of the cloud-based ERP solution.
Advantages of Cloud Based ERP Solution
Some of the advantages of cloud-based ERP solution are:
Cloud based ERP system takes less time to get implemented as compared to on-premises solution. The reason is that the cloud system is already set up and you just need to get plugged into it. However it is important to note that reengineering of the business processes takes same amount of time no matter you choose to implement cloud or on-premises ERP.
Cloud-based ERP solution cost less than an on-premises solution as you share the server hardware, overhead and all other costs with different customers on the vendor system.
Easy to Install
ERP system is set up at the vendor’s site so it is easy to install your ERP system. Staff can guide you throughout the installation as they are familiar with the system. However, downside to this is lack of flexibility as you are limited in how much a customization can be done to the basic ERP system.
No worry about the upgrades or patches
When you opt for the cloud-based ERP system then you don’t need to worry about the upgrades or any other maintenance as it is taken by the vendor. Disadvantage to this is that you have to upgrade on vendor’s schedule and this can be a problem if you have customized your cloud-based ERP system.
Controlled staffing costs
Staffing costs can be controlled as you share the cost of highly skilled IT staffers with vendor’s other customers. You can also avoid the problem of under-utilized staff who don’t have to spend time in maintaining ERP system which is beneficial for small businesses.
Cloud-based ERP systems charge monthly for their services and this let you make the right predictions for the costs unlike an on-premises system. Cost of cloud-based ERP solution can vary according to the size of your system. Large scale enterprises prefer on-premises system while small and medium scale enterprises usually go for cloud-based ERP.
Choice of a cloud-based or on-premises system is not an easy one and you need to carefully weigh your needs against the benefits and costs of both system before going for the right one.