Cloud vs. On Premise ERP: The Blog Post to End the Debate

April 3, 2023 Acumatica, Digital Transformation, ERP Systems, Microsoft Dynamics 365 Business Central, Productivity, Technology

In today’s highly competitive business landscape, companies are under constant pressure to improve their operations and reduce costs while maintaining high levels of efficiency. One way to achieve these goals is by moving their on-premise ERP systems to the cloud. In this blog, we will explore why companies should consider moving their ERP systems to the cloud and why it can be disadvantageous to stick with on-premise ERP systems.

Cloud ERP SystemsOn-Premise ERP Systems
Scalability & FlexibilityCloud-based ERP systems offer unparalleled scalability and flexibility compared to on-premise systems. Cloud-based systems can easily scale up or down as needed, without worrying about hardware or software limitations. This is especially beneficial for companies that experience seasonal fluctuations in demand or are experiencing rapid growth.On-premise ERP systems have limited scalability, and businesses may need to invest in additional hardware or software licenses to accommodate growth.
Upfront CostsMoving ERP systems to the cloud can also be cost-effective. Cloud-based ERP systems have lower upfront costs compared to traditional ERP systems, which require a significant investment in hardware and software licenses. Cloud-based systems are typically offered on a subscription basis, which can be particularly attractive for smaller businesses or startups that may not have the resources to invest in traditional ERP systems.On-premise ERP systems require a significant upfront investment in hardware and software licenses, which can be prohibitive for smaller businesses or startups.
Accessibility and CollaborationCloud-based ERP systems offer enhanced accessibility and collaboration. With traditional ERP systems, employees may need to be on-site to access the system, which can be limiting for remote workers or those who need to access the system outside of normal business hours. Cloud-based ERP systems can be accessed from anywhere with an internet connection, making it easier for employees to collaborate and work together.On-premise ERP systems are typically only accessible from within the company’s premises, limiting accessibility and collaboration.
Upgrades and MaintenanceCloud-based ERP systems offer automatic upgrades and maintenance, which can save companies time and resources. With traditional ERP systems, companies may need to manually install updates and patches, which can be time-consuming and may require specialized IT expertise. With cloud-based ERP systems, upgrades and maintenance are handled by the provider, which frees up IT resources and ensures that the system is always up-to-date and running smoothly.Upgrades and maintenance for on-premise ERP systems are typically manual, which can be time-consuming and require specialized IT expertise.
SecurityCloud-based ERP systems offer enhanced security. Cloud providers invest heavily in security measures to protect their customers’ data, including physical security measures, such as secure data centers, and data encryption and other cybersecurity measures. Cloud providers also have dedicated teams of security experts who monitor the system and respond to any threats or vulnerabilities.On-premise ERP systems are vulnerable to security breaches and require significant investments in security measures to protect company data.

The benefits of cloud-based ERP systems far outweigh the disadvantages of on-premise ERP systems. Cloud-based systems offer unparalleled scalability, lower upfront costs, enhanced accessibility and collaboration, automatic upgrades and maintenance, and enhanced security.

Visit www.crt-insights.com/live-in-5 for more info!

Sticking with on-premise ERP systems could actually limit your company’s growth potential, increase costs, and make it difficult to compete in today’s fast-paced business environment. By moving your ERP system to the cloud, you can take advantage of the many benefits that cloud-based ERP systems have to offer and thrive despite the everchanging business landscape of today.

To find out how to move to the cloud, contact us at sales@crt-insights.com.

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