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Cloud vs. On-Premise ERP: Which Wins? Factors to Consider

Written by Laura Schomaker

September 15, 2022

Considering transitioning your on-premise ERP solution to a cloud-based one? Or are you looking at ERP for the first time and wondering who wins out in Cloud vs. On-Premise ERP? They can both offer advantages, but there are some factors to consider in advance. Here are a few of them.

Remote Workers

Increasingly, workers are shifting to hybrid work environments. This means that an on-premise solution may limit, shutting down collaboration and frustrating access to real-time data. Cloud helps ensure that ERP users are all always on the same page. On this front in the Cloud vs. On-Premise ERP battle, cloud reigns supreme.

Cost

Another crucial factor to consider is the cost associated with either approach. Typically, on-premises requires significant upfront investment in software and hardware, while cloud-based ERP involves ongoing subscription fee costs. If you’re fine with ongoing operating expenses to maintain your ERP, look to the cloud. If you prefer an upfront investment with occasional maintenance costs, an on-premise solution may be the way to go.

Data Sovereignty and Regulations

For some industries, regulations are the name of the game, limiting your options with some software solutions. If you are in a highly regulated industry or in finance where data sovereignty is a concern, on-premise can give you more control to ensure that you are doing right by your business and your customers. Cloud-based solutions though are increasingly secure, so you might get a ‘best of both worlds’ answer that enhances access and collaboration while still supporting your security needs.

Implementation

Finally, consider how quickly you want a solution in place. Implementation is much faster with cloud-based ERP. By working with a skilled ERP consultant, you can be up and running in no time at all. On-premise solutions can take longer to design and implement, so make sure you have the time to wait.

Ready to see what ERP can do for you, or do you have more questions about cloud vs. on-premise ERP? Contact us today to set up a consultation.

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