Do you know the folk-tale on how the cloud won over mountain? Or was it other way around?
Well, pretty much the same happens now in world of software, namely ERP. Which suits you best: trusty on-premise system or cloud one, separated from you by distance? Let’s see…
On-premise ERP systems mean that you need to invest in software and hardware, choose a physical location to store the equipment and hire IT experienced staff to maintain your system.
This gives you full control over replacement of machines, upgrades of software – and highest level of customization for your specific business uses; also – highest security level, demanding authorization to access data stored on enclosed media.
On the other hand, since you have it physical, you’ll have to provide conditions for living people, not only for your priceless computers and data, including air conditioning and brain conditioning, that is, education of your employees to a certain degree – or you’ll be forced to hire consultants, which is also “going outside”, although not as much as when talking cloud.
Of course, all of this has to exist somewhere, but in case of becoming one of the land of clouds you leave most of this trouble up to someone else. Cloud ERP solutions mean that infrastructure and data are hosted on remote hardware (that is called “cloud”), with apps and data access via an interface, across the Internet.
Clouds could be paid for on annual basis, which gives good startup, but in the long run, that might happen to be more costly than on-time payment of on-premise systems. They are also easy to use, and fool-proof, since being overseen by some remote specialists. You and your team climb on your cloud from anywhere and anytime$ as well, it is possible to customize it in some features, and manage users.
Of course, even heavenly possibilities have their flaws. Like when you have no Internet connection (with might be not uncommon in Ukraine) or not being able to customize your system or achieve set goals since your cloud lacks charge necessary for your brainstorm – that is, has no modules needed. Alas, clouds have vulnerable security on way of data between user and cloud server.
From a strategic, functional perspective, it is advised to select an on-premise ERP solution only if your company has more than 50 employees. Evidently, with quantity less than that, personnel would be doubled with hiring all these people mentioned above.