Which ERP deployment method is right for you?

Posted by Matt Lewis

The deployment method of your ERP software refers to how it's stored and accessed. One of the deployment methods is more traditional, but with the advancements in Cloud Computing that has a changed. Both deployment methods host powerful software options, and both have pros and cons.

Traditionally, ERP systems have been “On-Premise ERP Systems.” This means that the software is installed on servers on the actual grounds of your business building or over your local network.
With new developments in technology, and the introduction of cloud-based computing, a second option, “Cloud ERP Systems,” is becoming increasingly popular.

2 methods of deployment for ERP software:

1. On-premise ERP systems

• Pros: With an On-Premise ERP System, you can keep your data close and secure. You don’t have to worry about security leaks, threats, or the possibility of third parties accessing your information.
• Cons: You need someone on-site, sometimes a team of people, to manage the servers, the software, and the admin settings, which may potentially add costs, particularly if there is little to no IT staff. Also, the up-front cost of installing the servers and other required hardware will be more than in a cloud-based system.

2. Cloud-based ERP systems

• Pros: Cloud ERP Systems generally have lower up-front costs than their On-Premise counterparts. They also require less initial manpower as there is no need to build an internal infrastructure. They can be easily accessed remotely, and in most cases, the Cloud ERP Provider will handle any software updates for you.
• Cons: In the event of an internet outage, you won’t have access to critical data from your ERP system. While unlikely, there is a risk of security breaches, and the month-to-month costs of a cloud-based system may ultimately end up costing more in the long run, even though it’s lower cost upfront.

Both deployment methods have pros and cons and when choosing which method to go with there is no wrong answer.  You need to find what deployment method is best for you, both right now and long-term.
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