Cloud ERP vs. On-Premise ERP: Which is the best choice for you?

Which is the best option for you – Cloud ERP or On-Premise ERP? The answer is…it depends. Choosing the best ERP deployment option can be tricky.

But worry not; we are here to guide you through the challenging process and help you make an informed decision.

Let’s take a comparative look at the difference between On-Premise and Cloud ERP.

Cloud ERP vs. On-Premise ERP Comparison:

Parameters Cloud ERP On-Premise ERP
Cost Generally charged at a monthly or annual subscription basis. There are additional fees for implementation support and training. Requires little or no capital investment. Generally charged as a one-time license fee. It is more of a capital expenditure. There are additional fees for Implementation support, updates, and training.
TCO (Total Cost of Ownership) Though Cloud is positioned as a low-cost investment, but over a 2-3 year period, the TCO of a Cloud based ERP System starts to outrun the On-Premise model. Once you cross 2-3 years the On-Premise ERP Systems starts to cost less.
Deployment Method Cloud ERP servers are deployed by your ERP vendor. You don’t have to buy any server or cloud space separately. Monthly Fee/User includes these charges. Your server is kept on your premises or at an ISP (Internet Service Provider).
Security Data security rests with the vendor. This is one of the biggest drawbacks as many organizations may not be able to make peace with this idea. While the vendor promises the best of security. Data security is largely within your control and you can make it as safe as possible depending on the investments you want to make.
Customization Cloud vendors offer no or very little customization in general. Can be customized as per your needs.
Implementation cycle It takes less time for implementation largely because of the fact that it does not allow customization. Implementations take longer time as they implement a customized ERP solution as opposed to a standard solution in Cloud.
User acceptance Lower, as the users are required to adapt to processes offered by Cloud ERP. Higher, as the system is customized to your needs.
Hassles of managing IT Infrastructure. No hassles. All hassles are taken care by Vendor. The servers these days are extremely reliable and even if you decide to go for on-premise there is hardly any support cost for managing IT infrastructure in an on-premise model.

In the end, just remember to not let any pre-conceived notions affect your judgment. Take time to go through the list again and choose the best ERP option that suits your needs. Try looking for an ERP vendor that provides both implementation types, so that you have the flexibility to choose between both the options Cloud ERP or On-Premise ERP.

To gain a better insight and information about the best ERP option for your business, write to our marketing team at ESSIndia’ best-in-class ERP software, ebizframe, provides you the liberty of choosing between Cloud and On-Premise ERP System, as per your needs.

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