An ERP is a software package with various functionalities that integrates all the departments of any organization and creates a centralized database for the smooth running of a business. In simple terms, the main difference between an on-premise and cloud-based ERP is that when the software is installed on a computer at your workplace connected to a local server then its called on-premise software whereas the cloud-based software is delivered to users via vendor’s server and can be accessed from anywhere using your internet browser.
Recent days show an increase in the number of organizations (small or medium-sized ones) rapidly moving to cloud-based ERP systems due to their various benefits. Listed below are the main advantages that a business experiences by adapting to cloud-based ERP.
Low Operating Cost :
On-premise ERP requires more of your budget in terms of hardware set-up, installing the software, and maintaining it regularly with the help of IT staff. But cloud software is purchased as a subscription based on no. of users and charged accordingly as monthly or annual plans which are more affordable and budget friendly.
Faster Implementation & Increased Security :
Another major difference and benefit of Cloud ERP is its faster implementation as companies need not spend more time between their busy working schedule. The software is provided by a vendor who takes care of all other maintenance and regular updates. They also offer a solid security of your data taking complete responsibility so you need not worry about it.
More Flexible and Scalable :
Since the software can be accessed from anywhere and at any time with readily available data, it is easy for the decision-makers or other employees to take timely actions, preventing so many hassles. As the cloud ERP can be quickly integrated into various new functionalities, it is much more scalable to adjust to new business requirements.
Quick Upgrades :
Another major advantage of cloud-based software is that it can get quick upgrades and thus keeps you updated with new technologies which results in a more streamlined business process than any traditional on-premise software that takes much time for it.
Service Support :
The solution provider offers faster technical support in terms of any issues and makes sure that the software gets updated from time to time. Whereas in on-premise software you will have to pay separately for after services they would need.