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Is cloud-based ERP better than on-premise ERP and why?

Anaya Reck

In my opinion, cloud-based ERP is a better option compared to on-premise ERP. The primary reason being its flexibility and lower upfront costs.

Unlike on-premise ERP systems, where the software has to be installed on local servers, cloud-based ERP systems are accessible via the internet, making them much more versatile. This means that they can be accessed from anywhere in the world, as long as there is an internet connection available. This feature is especially beneficial as it allows for remote work, which is increasingly becoming the norm, thereby enabling employees to access the software without the need to be in the same physical location as the server. Additionally, cloud-based ERP offers the benefit of being accessible on multiple devices such as smartphones and tablets, making it an even more convenient option for users.

Another major advantage of cloud-based ERP is its lower upfront costs. With on-premise ERP systems, a company needs to invest in infrastructure resources like servers, hardware, storage space, software licenses, and specialized IT personnel to manage the ERP system. On the other hand, cloud-based ERP comes with a much lower upfront cost since it does not require businesses to purchase and maintain physical resources like on-premise systems. This makes cloud-based ERP a more affordable option for small to medium-sized companies that may not have the resources to invest in expensive IT infrastructure.

Additionally, cloud-based ERP systems offer greater scalability than on-premise ERP systems. With cloud-based ERP, businesses can add or remove users as and when required, which means they can quickly increase or decrease capacity without the need for costly upgrades or additional installations. This is a significant advantage, especially for growing businesses that may require more resources and flexibility to keep up with their growth rate.

Finally, security is another important consideration when choosing between cloud-based ERP and on-premise ERP. Cloud-based ERP systems often have more security measures in place than on-premise ERP systems since their providers know the importance of keeping sensitive data secure. Cloud providers typically have teams dedicated to ensuring the security of their systems, making it less likely for data breaches to occur.

In conclusion, cloud-based ERP is a better option compared to on-premise ERP due to its flexibility, cost-effectiveness, scalability, and enhanced security measures. Its ability to provide remote access from any location with an internet connection is a significant advantage that is increasingly becoming necessary for today's work environment. With its numerous benefits, cloud-based ERP is the smarter choice for businesses looking for a reliable, scalable, and cost-effective solution for their ERP needs.