Cloud ERP vs on-premise ERP

Cloud ERP is hosted on your provider’s cloud platform and managed by their IT team.

On-premise ERP, on the other hand, is installed on your own hardware and servers and managed by your internal IT team, if there is one or your external partner. In recent years, businesses have been increasingly adopting the cloud for ERP deployment options.

Why choose a cloud-based ERP system?

Cloud ERP and its advanced features and flexibility make it essential for success in the digital age. Historically, ERP systems have provided enormous value to organizations by helping them enhance productivity and gain insights. But with digitization, the world and the competition have changed. On-premise ERP systems cannot be maintained, and it is difficult to adapt to permanent changes. Designed for a simpler landscape, most legacy ERP systems fail to deliver the speed, agility, and insight companies need to operate in new, more agile ways.

Is Cloud ERP secure?

With all the news about data breaches and viruses, it makes sense to wonder if cloud ERP is secure. No system is unbreakable. However, how safe your system is depends on how it was developed and who manages it.

Here are some key points to consider:

• Data Theft: Large companies have had their data files stolen, compromising their customers’ private information. However, in most of these cases, the data was stored on the company’s premises on servers and not in the cloud.
• Data loss: The loss of entire files is a significant risk to a business’s property and can happen in natural disasters or emergencies. Regular and frequent backups are the most valid and sure solution for data recovery. With cloud ERP, infrastructure providers provide off-site backups regularly. So when, if ever, you have a data loss, it can be quickly restored to get the system up and running again quickly.
• Security: Proper ERP security is of the utmost importance. SMBs typically have limited IT staff with responsibilities for infrastructure maintenance, system updates, and user issues. With a reliable cloud ERP provider, these businesses automatically have full-time professional security experts on call 24×7 to ensure all security updates and procedures are maintained.

Based on the above, cloud ERP presents a much more secure option than on-premise installation for SMBs.