Aremi

ERP (Enterprise Resource Planning) is the term used to automate a company’s workflow. ERP, being an automated solution, it connects all the departments within the organization. You can enhance your company’s operational efficiency, controlling costs, and thereby increasing profits by using ERP solutions. When you are selecting an ERP solution for your business, you get to choose between on-site ERP and cloud ERP solutions. The critical difference between both of these solutions is how the software is deployed and accessed. On-premise ERP software is installed on PCs and servers that belong or are leased by the company. On the other hand, cloud-based ERP is deployed on the cloud and accessed through a web browser, which means that the servers are either owned or leased by the vendor and not the organization. Also, cloud-based ERP systems are Software as a Service (SaaS). I have tried to distinguish the ERP solutions based on some crucial parameters, which are: Cost and time: On-Premise ERP solution requires the right amount of capital to buy and manage it. As you need to deploy the software at your office premises, you need to hire the right people to manage the system beforehand. However, setting up the infrastructure and unfurling an on-premises ERP system is a time- consuming and cost-intensive process. On the other hand, cloud-based ERP systems are pre-deployed with extensive set up on the cloud. The subscription fee for the installation of ERP software includes hardware and software costs. This implies that the installation cost of cloud-based ERP is much less than that of on-premise ERP. You need to pay operational costs with cloud-based ERP, which means that you only pay for as long as the services are utilized. Another advantage of cloud-based ERP is that they take less time to deploy. Customization and Mobile Access: Customization and mobile accessibility are vital aspects of an ERP system. An on-premise ERP system delivers extensive customization, but this could delay the implementation process. Your existing system becomes inactive as the ERP vendor introduces new software updates and enhancements frequently. The On-premises ERP is not easily accessible for real-time data monitoring by your company’s workforce and stakeholders. A cloud-based ERP system customizes your data according to your business’s requirements. This customization is deployed by the Value Added Reseller (VAR). Your cloud-based ERP system will be updated automatically with the new updates and security patches. Moreover, the end-user can get the advantage of the Cloud ERP system through native mobile apps. Data Security and Ownership The organization covers all the data security and controls over them in case of on-premise ERP. However, at times due to lack of implementation of the adept data supervision protocols, malicious attacks occur. On the cloud-based ERP system, all the data monitoring is done by the vendor and can be accessed via a web browser. The organization has to go with the encryption method to enhance and safeguard data security. The cloud service provider will update your system automatically, therby ensuring you work in a safe and secure environment. Integration and Expandability: Integration is one of the most intimidating factors to consider while selecting an ERP solution. In contrast, expandability depends on your ERP’s flexibility with the eventual expansion of business operations and the number of users. In case of the on-premise option, you need to focus on integrating the latest version with the existing legacy system. If you miss something in between the integration process, the software may go void. On the other hand, in cloud-based ERP systems, the service provider will take the complete responsibility of the integration process, delivering an effortless work experience for the client as well as end-user. Cloud-based ERP solutions allow an exceptional level of flexibility regardless of the increase in the number of operations and users. Probably, the on-site ERP system does not offer the same authorization for the number of users. Training and Support: The On-premises ERP system requires comprehensive training and technical assistance for the employees. On the contrary, for a cloud-based ERP solution, the service provider will assist the technical panel in the company to handle the IT functions and supports in fixing the technical aspects. Conclusion: The best five aspects mentioned above summarize that cloud-based ERP software drives more business expansion and effective automation. Recently, cloud-enabled ERP solutions have become a remarkable solution for a company’s workflow automation.