The Enterprise Resource Planning (ERP) structure of an organization forms the basis of data collection and analysis which determine a series of business decisions taken regarding the product cost, marketing strategies, and service delivery.

What’s an ERP?

On-Premise ERP involves the installation of servers (for data collection and processing) within the physical locus of the office.

In the Cloud-ERP structure  the vendor’s cloud computing platform is used to process the data of the company.

On Premise V/s Cloud ERP

Differentiating between Cloud and On-Premise ERPThe factors considered while differentiating: The Physical Cost

The Time Limits

Maintenance

Performance

Security

Regulatory Measures

Data Recovery and Restoration

The Physical Cost: Hardware Cost On-Premise ERP requires the

ownership of hardware, its upgrading cost along with the indirect cost of training of an IT team.

In Cloud ERP, the hardware and training costs are eliminated but license cost has to be paid.

The Time-Limits: Uptime and ProductivityIn On-Premise, you will have to

find out the amount of time the system will be available for the applications.

In Cloud ERP systems, a minimal of 99.9% uptime is provided.

Maintenance: Updating & Upgrading of the System In On-Premise ERP, the time taken for

upgrading the system will involve the IT teams’ re-arranging the system throughout the users’ networks.

In Cloud ERP, the upgrading is executed by the vendor such that no system changes have to be resolved.

Performance: Versatility and Accessibility Added to the presence of all-time

system availability, the Cloud ERP is a dynamic model which squeezes or expands depending on the running needs of the company. 

In a cloud-based ERP, the client has access to real-time data through the intranet or internet. 

Security During the movement from On-

Premise to Cloud ERP, the most nagging issue is of the level of security available .

The verdict inclines towards declaring that Cloud ERP is almost the same as On-Premise ERP structures.

Regulatory Measures Security-standard systems in

place are intended to ensure the safety of cloud companies.

These certifications include SSAE-16 Type-II and ISAE-3402 Type-II.

Data Recovery and Restoration The key benefit of Cloud ERP is the

availability of entire backup of your data which is safe in storage, often at multiple locations.

In case of any issues with the On-Premise ERP, recovery and restoration of data is almost impossible.

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