What’s the Difference Between Cloud ERP and On-Premise ERP?

ERP Solutions

With many challenges confronting distributors, manufacturers, and retailers, finding ways to increase profits is now more important than ever. Choosing the right ERP solution is one of the best ways to boost the bottom line while streamlining internal processes and increasing productivity.


If you’ve done your homework, you probably already know that you can opt for an on-site ERP solution or a cloud-based system. But what are the differences between the two? There are some key considerations that can help you choose the ERP software that’s right for your organization.


Cloud ERP Systems Offer Shorter Time to Implementation

One major difference between on-site and cloud-based ERP solutions is the time required for implementation. An on-premise ERP solution comes with a much bigger time commitment to get the system up and running. That’s because you must obtain and deploy the computers and servers needed to run the software.

Cloud-based ERP software runs on off-site servers, in secure data centers. With no additional hardware to buy or set up, the time it takes to implement a product like Microsoft Dynamics 365 is much shorter than that of an on-site ERP alternative.


More Predictable Technology Costs with Cloud ERP

Another issue that comes with on-site ERP systems is unpredictable expenses. Maintaining computers and servers or replacing equipment after a server crash can mean mounting charges for your business. Cloud-based solutions, on the other hand, offer more consistent costs. There is no software or hardware to maintain, so you can avoid the hassles and unexpected outlays that occur with on-premise ERP technologies.


Improved Security with Cloud-Based ERP Solutions

Security is crucial for any business, and companies now face more threats than ever before. Employees working on unsecured Wi-Fi networks or with mobile devices are just some of the risks. The fact is, most IT departments don’t have the resources to manage such security threats. But the good news is that cloud-based ERP solutions offer enterprise level security, freeing up your IT team to focus on other important work. That’s simply not true for on-site ERP systems.


Learn more about the differences between cloud-based and on-site ERP solutions by contacting I.B.I.S., Inc., a Sonata Software Company. Call (770) 368-4000 today!

Dominic Telaro

Article written by

CFPIM, CIRM | Vice President Industry Solutions | APICS Fellow and Certified in Integrated Resource Management Over 35 years of Manufacturing, Distribution, Supply Chain Operational, Software and Consulting experience. His professional career has been in Manufacturing and Distribution from shop floor roles through to implementing ERP, DRP and Supply Chain solutions and on to leveraging this rich experience to consulting, product management, product development and software sales. He has held positions as VP of Industry Solutions, VP of Product Development, VP of Sales and Marketing and Global Practice Leader for companies like IBIS Inc., IBM, Janis Group, Metamor, Marcam Corp. and more. Presently he is responsible for the Supply Chain Industry vertical at Sonata Software with Microsoft Dynamics 365 for Finance and Operations as a core technology solution expertise. Dominic publishes many blogs and articles for the industry and has been a guest speaker for multiple industry events

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