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Auf dem Bild sieht man eine Person an einem grauen Laptop sitzen. Als Hologram ist eine Grafik zusehen, die ein ERP System widerspiegelt. Das Bild wird für den Blogbeitrag "On Premise vs. Cloud" verwendet.
3 Minutes

On Premise vs Cloud: Which solution fits your business? 

Are you also facing the choice between a cloud-based ERP and an on-premise solution, wondering which better meets the needs of your company? In this article, we not only highlight the crucial differences between both ERP solutions but also guide you through the pros and cons to help you choose the optimal solution for your business.

On-Premise vs. Cloud: Accessibility and Management 


Are you trying to choose between an on-premises and a cloud solution? Are you wondering which is better suited to your company’s needs? In this article, we will highlight the key differences between the two ERP solutions. We will also guide you through the pros and cons to help you choose the best solution for your business.

Cost Structure: Cloud-Based vs. On-Premise ERP Systems 

So, what are the costs? Not so trivial, especially when it comes to implementing an ERP solution. 

With a cloud-based solution, you benefit from lower implementation costs and a clear, predictable cost structure. With a flexible licensing model, a cloud-based solution is ideal for scaling because you only pay for the users or licences you need for your project. Maintenance and updates are also included with Software-as-a-Service.

On-premise solutions require a higher initial investment, but can offer long-term financial benefits if you can effectively utilise internal resources and avoid regular subscription fees. 

Data Security in the Cloud vs. On-Premise Solutions 

With on-premise solutions, you have direct control over all security measures and can more easily meet specific compliance requirements. Because the data is stored on a server in your company, you need to have higher security standards not only for your IT infrastructure, but also for your office! Access to the server room needs to be secured. Fire or water damage is critical to the safety of your data… sounds strange – but it has all happened. 

With cloud ERP, you rely on the provider’s security infrastructure, which often meets stringent industry standards. Partnering with SAP ensures 100% guaranteed data protection and compliance with the latest security standards on servers in SAP’s German data center. Additionally, cloud-based ERP frequently provides regular, complex security updates and adherence to the latest standards.

Maintenance and Updates: Advantages of the Cloud Solution Over On-Premise 

Cloud ERPs simplify life with automatic updates and maintenance directly from the provider, ensuring you always have the latest technology. With on-premises systems, you handle updates and maintenance, requiring in-depth IT knowledge and causing potential delays.

Conclusion 

The decision between cloud and on-premise ERP solutions should be well considered and largely depends on your business requirements. Whether it is flexibility, control, cost or technical equipment – analyse both the short and long term aspects to find the best solution for your business. For more information, or if we have missed a question, please contact us – we look forward to hearing from you! Just get in touch with us.

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