Cloud ERP vs On-Premise ERP

Espresso Tutorials

Fabian Bentz


Forrest Burnson at Software Advice, a firm that helps buyers choose ERP software, recently wrote an article called Cloud ERP vs On-Premise ERP.  The article provides a breakdown of the advantages and disadvantages of each type of ERP system, and how you can determine which system is best for your organization.

Here are 5 key points:
1. The biggest difference between the two options is how they are deployed (i.e., think through hosting on a vendor’s server and access through a Web browser vs. a locally installed software on your company’s computers and servers).
2. Hybrid deployment options are available, which means the ERP system leverages both cloud and on-premise technology.
3. Pricing varies between cloud and on-premise solutions. Cloud software is typically priced using a monthly or annual subscription, while on-premise is generally priced under a one-time perpetual license fee. Here is a visual representation of the total cost of ownership (TCO) for each deployment model:


4. When choosing a deployment model, it is important to research the advantages and disadvantages that come along with it. This includes the model’s cost, security, customization, and implementation factors. For example, implementing a cloud-based system is simple compared to the implementation of a customized on-premise system.

5. Security, mobile access, and customization are aspects that many companies are grappling with as they explore the options.

Get up to speed and read the full article here.

Need SAP training resources? Start your free 30-day to the SAP eBook Library today!