Are you thinking about implementing an ERP system and hosting on premise or do you already have one in place but are considering migrating to the cloud? In this article, we aim to explain the benefits and drawbacks of each solution. In the past year, the demand for cloud services has sky rocketed and so has the price we now pay for servers and licensing, we were recently approached by a customer who purchased a new server and other hardware for an eye-watering amount and it got us thinking, is this still the best way of hosting an ERP system?
Firstly what's the difference? Well on premise hosted ERP refers to installing and operating the ERP software from the company's physical infrastructure, whilst cloud hosting refers to hosting the ERP software on a third-party server accessible via the Internet. Ultimately which option is right for you will depend on several factors, including the organization's size, budget, industry, and specific requirements.
On Premise Hosted ERP Benefits:
- Once you own a server there are no recurring costs, in the case of MIETrak Pro you then own the software and the infrastructure it's installed to.
- You have complete control over your data and ERP environment.
- You can regulate your own security measures and configure backups.
On Premise Hosted Disadvantages:
- Initial setup and maintenance costs can be significant, especially for a small business.
- Choosing the right server can take some time, it's important when making such an investment that it not only meets your current needs but is capable of accommodating your business growth too.
- You will likely need to employ an IT company or specialist to facilitate server maintenance and security.
Cloud Hosted ERP Benefits:
- Facilitates remote working and business continuity
- No large upfront expenditure is involved at MIE we offer our cloud services at an affordable price, billed quarterly.
- Cloud providers also own the burden of any maintenance and upgrades
- Allows for effortless scalability
- Faster to implement
- As cloud providers usually specialize in securing & protecting Data they often offer better built-in security measures. The high level of security needed to ensure your data is encrypted and backed up as well as cyber security infrastructure can be hard for a small or medium-sized business to achieve.
Cloud Hosted ERP Disadvantages:
- Reliance on Internet Connection. In the case of connectivity issues or outages, the organization's operations may be affected.
- Recurring subscription fees, particularly when considering long-term investments.
In summary the choice will depend on your business and future business plans for example, if you have a desire to become paperless then the cloud is a good fit, giving you full business transparency wherever you are. If on the other hand, you are running a smaller operation and intend to keep it that way, investing in an on-premise solution would soon recuperate what it originally cost.
Here at MIE Solutions, we provide our ERP software either on-premise or cloud-hosted, and are more than happy to discuss on an individual basis the best option for your organization. We pride ourselves on our honest and open approach as ultimately our customer's success is paramount. To discuss your ERP requirements either: Call us on- 01527576444 or Email- [email protected]