When searching an ERP solution for your business, you will be given 100’s of products to select. As you decide your options, one of the key decisions you will need to make is whether to select a Cloud ERP Software or On-premise ERP Software.
The basic difference between the both the options is: On-premise ERP Software is deployed locally in your company and then managed by your IT staff while cloud ERP software also called Software-as-a-Service (SAAS) is provided as a service. In SAAS ERP model data are managed centrally by the ERP software vendor and accessed through the internet using a web browser and mobile apps.
Small and medium businesses are adopting Cloud-based ERP Software, but there are several reasons why a company might choose a traditional, On-Premise ERP solution.
This post elaborates the advantages and disadvantages of Cloud ERP Software and On-premise ERP software. And how you can decide which is suits best your company.
Cost :
Cloud-based ERP Software (SAAS) is generally priced as a monthly or annual subscription, with additional cost for training and support. The advantages of this pricing model are your software expenditure can be OPEX instead of CAPEX. Minimal initial investment and easy to forecast. You can avoid hardware such as servers and maintenance cost. All the backups and maintenance will be taken care by the vendor.
On-premise ERP software is a one-time investment for the license (perpetual license), usually license is based on the size of the company and number of users. Generally, On-premise ERP software will be CAPEX. Selecting the right implementation partner with Industry (domain) knowledge and experience are the key factors. There are many ERP failure stories and court cases are filed against implementation partners because of poor implementation.
Brainsphere IT Solutions provides both on-premise and cloud ERP software solutions, check out our Products page for more information about our solutions.
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