Comparison Of Cloud V/S On-Premise ERP

1. Comparison Of Cloud V/S On-Premise ERP ERP is Enterprise Resource Planning that is a software and systems for managing the core management services such as manufacturing, supply chain, financial and other activities of the organization. Now, when you want to set up an ERP system in your office, there are several options and many factors to consider while choosing an ERP. In this article, we will make a comparison of Cloud ERP and On-premise ERP which are the two most deployed ERP systems. The comparison of both the Cloud ERP and On-premise ERP is based on the factors that a company has to consider like cost factor, technical factor, flexibility, security etc.

2. in this article, along with the comparison of both the ERPs, we will also give you an understanding of the implementation process of an ERP. To give you a brief knowledge, we will first go through with the introduction of the Cloud ERP and On-premise ERP. Cloud ERP Cloud-based computer software allows users to access other software over the internet. It has a lower upfront cost and the applications can be accessed anywhere. It is much useful for the small to medium level enterprise because it provides access to all applications without a heavy cost involved. On-Premise ERP On-premise ERP is a software that runs on in-house servers at your location or in a location under your control. It offers high-security measures by giving you control of your IT structure. It is very flexible and can expand or adapt as per the needs. Comparison Of Cloud V/S On-Premise ERP Below are the factors that need to be considered before going for a particular ERP for your organization. Let’s get started: 1. Total Cost Cloud ERP is not very expensive as it a ready-made set up by the vendor. All the technicalities like software upgrade and maintenance issues of

3. borne by the vendor and you just have to pay the subscription fee to get it deployed. On-premise ERP requires it to install locally on the system and unlike cloud ERP, it requires the IT department to do the maintenance frequently which adds on to its cost. 2. Deployment Time Cloud ERP comes already set up and it does not require any additional software or hardware so the deployment takes a few days or a week. On-premise ERP takes a very long time to install as additional software is required in its implementations and the IT teams need to adapt to the system. 3. Data Security The cloud ERP is handled by professionals of the software and so if there is any malfunction or risk of any kind it will be tackled easily without the organization having to interfere. On-premise ERP, on the other hand, is taken care of by the IT employees of the organization. If they are not experts, then the security may be put at risk. 4. Maintenance And Software Upgrade

4. The Cloud ERP is an already set up software that has its control with the vendors of the ERP. For all the upgradation and maintenance, the organization does not have to worry about as it is done by the vendor. On-premise ERP is taken care of by the organization and all the maintenance cost and upgradation is done by the organization personally. 5. Scalability And Integration It is the function of the software to adapt to changes. In both Cloud ERP and On-premise ERP, the scalability function is available and they can be modified as per the workings of the organization. But in On-premise ERP, you have to bear the cost of additional software and the time it takes to deploy with the changes. Pros And Cons Of Cloud Erp And On-Premise ERP Cloud Erp: Advantages · It is easy and quick to implement · It has great accessibility as it supports quick upgrade · It can be expanded easily with the growth in the organization in much less time · It has high-risk safety

5. Cloud Erp: Disadvantages · The organization has a lack of control in the system · They are dependent on the vendor for the connectivity On-Premise Erp: Advantages · The control of the software is in the hands of the organization · You don’t have to be dependent on anyone for connectivity On-Premise Erp: Disadvantages · The implementation time is very long as compared to Cloud ERP · The upgradation and maintenance cost has to be borne by the organization · It lacks flexibility · Need professional IT experts which can be costly How To Implement ERP: A Guide There are 7 steps that are followed by organizational management to implement ERP. These are:

6. · Research · Installation · Migration · Testing · Training · Deployment · Support RESEARCH The organizational team works on the vision and mission of the ERP installation based on the workings of the company, the desired results and the cost the company is willing to spend. INSTALLATION The next step is the installation of the ERP after choosing it from different options. The application developer will be responsible for the installation and building of the infrastructure. MIGRATION

7. This step involves the transferring of data of the organization to the new systems. The data should be reviewed and edited before transferring to the new system. TESTING Now comes the testing in which the transfer of data from one computer to another and the easy flow of information is tested. If there is any hassle with the working of the system then it has to be checked by the professionals. TRAINING Training the users/ employees is a very important aspect as they are the ones who are going to be working on the system. Sudden change in the software may be a little problematic to them and makes the training part very much important. DEPLOYMENT Deployment can take place either by Big bang method when all the information is transited from the old system to the new system in a single day. Or it can be done in phases by departments but it takes some time. SUPPORT The ERP requires the constant support of maintenance and upgradation from time to time. Some ERPs require IT experts from within the

8. organization and some are maintained by the vendors the software is bought. Either way, it is important to maintain the ERP system. Conclusion Selecting ERP is a crucial task and should be done with proper research. There are now hybrid ERP that is the combination of Cloud ERP and On- premise ERP, which gives the benefits of both. A right ERP software is the key to the successful working of the organization and should be researched thoroughly. For more information visit: https://consultingprudence.com