ERP systems are classified by data storage into On-Premise and Cloud-Based. On-Premise ERP requires in-house servers and maintenance, while Cloud-Based ERP stores data online, reducing hardware costs and maintenance.
Compare Cloud and On-Premise
1. Cost of expenses
Cloud-Based ERP has lower costs, requiring only software installation and an annual server fee. On-Premise ERP is more expensive due to hardware, maintenance, upgrades, and higher electricity costs. Businesses also handle system failures.
2. Rights over the system
Cloud-Based ERP allows full usage but requires the provider for modifications.
On-Premise ERP offers customization but needs maintenance and development.
3. Internal system information
Cloud-Based ERP stores data on external servers, requiring internet access and depending on connection speed.
On-Premise ERP stores data in-house, accessible via the company’s private network.