Cloud-ERP with a Chance of Meatballs: Pros and Cons when Evaluating Whether to Deploy an On Premise or Cloud Solution for your ERP
More and more companies are moving their business to the cloud every day. Easy accessibility, security, reduced IT maintenance, and expert backups are only a few of the reasons why the cloud is the answer for thousands of companies looking for an efficient way to host their ERP solution. According to Business News Daily, over 63% of companies are using some type of software-as-a-service (SaaS) platform to manage their everyday activities.
There are several things to consider when deciding between an on premise or cloud solution. First, you need to analyze your business’s environment and capabilities to determine which option is better suited to your business. Your data is at the heart of your organization, and you need a solution that ensures that all of your financial records are safe should disaster strike and something happen to your production servers.
Cloud deployments can offer much more resiliency than an on premise solution, particularly if you do not have a strong IT department in-house. A good cloud provider offers expert security and protection with real time server monitoring and intelligent contingency plans.
The monthly fees associated with cloud are predictable and allow you to forecast more easily than the unknowns of a highly customized on premise application. When evaluating on premise ERP, you need to include hardware, support, maintenance, and customization costs which can vary greatly over time. Cloud solutions may seem more costly with a recurring fee, but by reducing your in house resource expenditure on IT, you can focus your efforts on value-added strategies for your company.
On the other hand, for many larger companies, an on premise solution offers more flexibility and the peace of mind that comes with your own people managing your data. You also get to be more in control of system upgrades and customizations. Companies that don’t necessarily conform to “out of the box” ERP solutions that need to tailor the system to work the way they do may find that an on premise installation works much better than a cloud offering.
Bigger companies that already have a sophisticated IT team in place are typically better equipped to manage their ERP in house than smaller firms that outsource these services. If you desire the flexibility to enhance your system on your schedule, or to have more control over your customizations, an on premise solution may be right for you and your team.
Evaluating your ERP options is not an easy decision. Let our Dallas-based consultants help you make the right one. Call Conexus SG today.