Cloud vs On-Premises ERP Updates
Cloud ERP
Software updates are usually handled by the software vendor.
On-Premises ERP
Software updates are usually managed by your ERP Software consulting partner or in-house IT staff.
Customizations
On-Premises ERP
These systems are easier to customize because you own the software and can customize the solution to support your unique business processes.
Cloud ERP
These systems usually have limited customization capabilities because you’re getting more of an “out-of-the-box” solution when you choose a Cloud ERP system. Make sure to do your research, about the customization capabilities in the Cloud ERP system you’re selecting, if making customizations to your ERP system is important to you.
Security and Disaster Recovery for Cloud ERP vs. On-Premises ERPs
Cloud ERP
Security threats are real. Since security is in the hands of the vendor when it comes to your cloud ERP system, make sure that you are satisfied with the data security standards of the vendor and review the guarantees they provide before choosing a Cloud ERP system. According to this article, Cloud ERP vs. On-Premise ERP, on softwareadvice.com, “You also have the option of getting a 3rd party security audit of a Cloud ERP vendor that you are considering.”
According to another Cloud vs. On-Premise ERP article, by Centric Consulting, “Vendors usually build Disaster Recovery into most cloud ERP service-level-agreements.” Make sure to review your prospective Cloud ERP vendors Disaster Recovery options, prior to making a software purchase.
Industries that are highly regulated (e.g. banking) and have extra sensitive information, may not be comfortable with a Cloud Environment for their ERP system and may be better suited for an On-Premises ERP system.
On-Premises ERP
When you have an On-premises ERP system, your in-house IT team has control over your data security. Ultimately, you will be responsible to have the necessary security protocols, and disaster recovery solutions in place so that your system can withstand malicious attacks and other threats that could result in big losses for your business.