On-premise Versus Cloud: A Rough Guide to Your ERP Computing Options
A decision point for businesspeople considering new software is On-premise vs. Cloud
Part 1 of a 2-Part Series
Towards making an informed decision, it’s helpful to understand your options. You want to ensure that your chosen solution is appropriate for your business in both functionality and deployment.
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Let’s start by defining the technologies.
On-prem software is installed on computers located in your own building. You might have a secure, air conditioned server room or closet where your company’s computer server and equipment is stored.
On-prem is the most common enterprise resource planning (ERP) software deployment today. That is because ERP is mission critical, meaning that your business cannot be without access to critical data. For example, manufacturers must have real-time access to their ERPs to ship, view their shop floor schedules, and so on. Failure is not an option.
Cloud software is housed at a remote server farm or computer cluster at a third party site. Software as a Service (“SaaS”) is a form of Cloud computing where software services are made available by paying a monthly subscription. One critical issue to consider with Cloud alternatives pertains to data ownership. Can your data be exported when and if you should decide to terminate the SaaS relationship?
Customer Relationship Management (CRM) was among the first software categories to make the leap into the Cloud, where salespeople working remotely can easily access applications on-the-go. Note that CRM rarely represents a mission-critical application. Though it may be inconvenient, salespeople can later phone in their orders or synchronize their remote devices when access to Cloud services are unavailable.
Note that on-prem and Cloud are not mutually exclusively. On-premise Software Hosted in a Private Cloud is an example of the hybrids created from combining on-prem and Cloud alternatives. Another example is On-Prem ERP with integrations to Cloud point solutions like CRM or Enterprise Asset Management (EAM).
Evolving computer technologies imply that on-prem may, or may not be, how you choose to deploy software tomorrow. In the meantime, your quandary is to determine if Cloud is right for you today?
To sort through your technology options, your unique business requirements must serve as a guide. Seek a technology partner who can offer a range of solutions. You should want to select the solution that’s best for your company today and into the future, whether it’s on-prem, Cloud or a Hybrid.
In the next part of this series, we’ll speak with a technical expert who has experience helping businesspeople like you evaluate their technology options. You’ll learn about the issues to consider when defining your technology requirements. The right approach can empower you to select the technology solution that best supports your company’s goals.
Thomas M. Birdwell, III
Which software applications are you currently deploying On-prem? How about in the Cloud? We appreciate your interest in the conversation!