ERP eazy System Articles
How many types of ERP software are there?
ERP software is a type of “enterprise application” designed to meet an organization’s needs and enhance business efficiency. Various ERP systems are available, differing in size, functionality, and organizational requirements. ERP is generally classified into three main types:
3 Types of ERP
Type 1: ERP Software Cloud System Model
Cloud ERP is an enterprise resource planning (ERP) system that operates on a vendor’s cloud platform, allowing organizations to access it from any device—such as a notebook, computer, or laptop—via an internet connection. Users can view both high-level and real-time detailed information, enabling immediate updates and planning without relying on other communication channels.
Cloud ERP is typically offered as a service, meaning customers do not own the software but instead pay a monthly or annual subscription. This eliminates upfront hardware costs, while the vendor handles application maintenance, software updates, storage, and security.
Type 2: On-Premise ERP Software
On-Premise ERP: A Secure and Customizable Solution
On-premise ERP is an enterprise resource planning system that operates on internal servers within an organization. Managed by an in-house IT team, it ensures data security and optimal server performance. Unlike cloud-based ERP, this system functions without requiring an internet connection, but access is restricted to the organization’s premises.
Typically acquired through a one-time investment, on-premise ERP grants full ownership and allows extensive customization to align with specific business needs. This approach provides greater control over system configurations, security protocols, and overall performance.
Type 3: ERP software, Hybrid ERP model
Hybrid ERP combines Cloud ERP and On-Premise ERP, providing the advantages of both systems. The setup and deployment vary based on the service provider, enabling organizations to tailor their ERP solutions to meet specific requirements.
This model offers flexibility, allowing seamless data transfer between modules and the selection of only essential features for efficient workflow management. Additionally, organizations can optimize costs by eliminating unnecessary functionalities and paying only for what they truly need.
Different ERP vendors provide various deployment models, including a hybrid deployment that combines multiple options. This approach integrates different hosting and deployment methods, enabling organizations to transition between models as needed. A hybrid deployment also offers unique advantages that may not be available in a single deployment model, enhancing business flexibility and scalability.