ERP: Cloud vs. On-Premise Systems

There’s been a lot of talk about cloud versus on-premise software but the fact remains that either option has its pros and cons. By understanding this, one can determine how both cloud and on-premise software can fit into their organization.

Simply put, the benefits and limitations fall into four main categories. These include cost, deployment and scalability, user access, and security. 

To break it down we have created two tables for you. Similar to what has been created by Dynamix Solutions, the first table lists out the pros regarding the four categories for cloud and on-premise software and the second table lists out the cons of said categories.

The Pros: Cloud vs. On-Premise

The Cons: Cloud vs. On-Premise

However, in addition to the tables we have provided for you, we would like to include a couple more advantages and disadvantages to either option so you can make an informed decision.

When it comes to on-premise systems, which is essentially an in-house server, you are obtaining physical control over your backup, keeping your data in-house, ensuring that a third-party can’t access your information, not relying on the Internet, and cutting costs, which benefits smaller companies. However, the opportunity costs include needing a capital investment in infrastructure and hardware, needing IT support, requiring physical facilities and space, and last but not least, making yourself vulnerable and susceptible to data loss due to the lack of recovery guarantees.

When it comes to cloud services, there is no need for capital or onsite hardware expenses, you can add storage as needed and pay for solutions on-demand, can backup and restore anything from any device due to the Internet connectivity, and your data can be backed up in the cloud in 15 minute intervals, minimizing your chances of losing data. But with the benefits reaps the limitations, and these include the limit to how much data can be stored in the cloud due to the availability and cost and not being able to access your data if the Internet goes down.

We understand that cloud-based servers are becoming increasingly popular due to their multi-tenant infrastructure that allows complete customization and accessibility to end users through the internet, but it’s important to see what will best benefit your organization.

Ultimately, the decision is yours and you’re going to pick the server that betters your company. Our recommendation is to run a trial on both options. However, after weighing the differences between server and cloud systems, we have to agree with Dynamix Solutions that the cloud system is essential for any successful business that wants to succeed and secure critical data long-term. The pros and cons of the cloud outweigh those of on-premise servers if your company values mobility, highly secure services, and efficient technological aptitude.

To learn more about either option, Visma.net has provided a full guide to the ins and outs of what you need to consider prior to making this choice for your business.