On Premise vs. Cloud ERP

When selecting a new enterprise resource planning (ERP) system, one of the most critical factors in your decision will be whether you choose to deploy it on-premise or in the cloud.

Cloud-based ERP systems are more common than ever before. Today, nearly every ERP vendor offers some form of cloud deployment option, and some have ditched their on-premise offerings altogether.

But there are still several reasons why a small or midsize business might choose a traditional on-premise system, which, until recently, was the norm in the ERP space. Which one is right for your organization? Well, only you can make that decision, but this rundown on the pros and cons of each should make it easier.

  • Cloud-based software is hosted on the vendor’s servers and accessed through a web browser whereby, there are many exceptions to this rule, in general, cloud software is priced under a monthly or annual subscription, with additional recurring fees for support, training and updates.

Here’s a breakdown of the pros and cons:

cloud erp pros and cons

  •  On-premise software is installed locally, on a company’s own computers and servers and is generally priced under a one-time perpetual license fee (usually based on the size of the organization or the number of concurrent users). There are recurring fees for support, training and updates.

Here’s a breakdown of the pros and cons:

on-premise erp pros and cons

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