When considering an ERP solution for your small and medium-size enterprises (SMEs), one of the most important decisions is to choose the deployment option: a cloud-based or one that’s installed locally. How you approach your new ERP solution will impact your budget and bottom line. Both options have their unique set of benefits so before you decide which method will best fit your needs, there are major areas to consider like infrastructure maintenance, cost, IT support, required hardware, and how much you are willing to invest.
Knowing your business needs and comparing the benefits of each deployment method helps you to make the right decision. Let’s figure out the key difference between on-premise and in the cloud deployment.
Application Deployment
Application is deployed locally on client owned infrastructure in the case of on-premise. And, while on the cloud application is deployed in the cloud. You need not have to worry about the rest in case of ERP cloud deployment option.
Implementation time
Implementation time is considerably high in on-premise. Generally, on-premise takes 2-4 months or more for successful running. While on-cloud takes as little as a few weeks or more.
Cost
The on-premise solution involves up-front capital costs for hardware, software, server space, etc. While on-cloud includes pay-per-user subscription model which means you pay for what you use. This means there is a substantial saving in terms of maintaining expensive infrastructure, servers, and more.
Data Integrity
Data is the lifeblood of any organization and any organization would like to play safer. So, in such a scenario, where the organization feels insecure in moving their data to the cloud such as product pricing, recipe formulas, supplier information etc, then SAP Business One can be used on on-premise. However, business data remains totally secure in SAP Business One Cloud.
ROI
Choosing an ERP is an investment that will benefit your business in various ways. The ROI on the investment depends on your unique business needs as which deployment options you prefer to choose.
Auto-update
The software gets automatically updated in SAP Cloud. The software patch and version updates is quite easy in the case of on-premise rather than in on-cloud.
Resource Utilization
Proper resource utilization takes place in this deployment as your staff can focus on adding value to your business. They can focus on more strategic tasks.
No Hardware-related issues
Nowadays, enterprises do not like to put effort and time on hardware. This is always an easy way out for the organizations.
SAP Business One is an extremely affordable and competent ERP that mitigates all your business complexities with one robust solution. So, it pays to be learned about the deployment option and know which method suits you the best as per your unique business demands.
