The Enterprise Resource Planning (ERP) structure of an organization forms the basis of data collection and analysis which determine a series of business decisions taken regarding the product cost, marketing strategies, and service delivery. Currently, two methods of executing ERP are available: On-Premise ERP and Cloud ERP. On-Premise ERP involves the installation of servers (for data collection and processing) within the physical locus of the office which are taken care of by the IT department of the company. In the Cloud-ERP structure (also known as Software-as-a-Service/SaaS), the vendor’s cloud computing platform is used to process the data of the company. The company accesses and regulates the server through web-browser. Read the full blog here: http://suyati.com/cloud-vs-onpremise-erp/ Write to us at: jghosh@suyati.com

2. The Enterprise Resource Planning
(ERP) structure of an organization forms
the basis of data collection and analysis
which determine a series of business
decisions taken regarding the product cost,
marketing strategies, and service delivery.
What’s an ERP?

3. On-Premise ERP involves the
installation of servers (for data
collection and processing) within
the physical locus of the office.
In the Cloud-ERP structure the
vendor’s cloud computing
platform is used to process the
data of the company.
On Premise V/s Cloud ERP

4. Differentiating between Cloud and On-Premise ERP
The factors considered while differentiating:
 The Physical Cost
 The Time Limits
 Maintenance
 Performance
 Security
 Regulatory Measures
 Data Recovery and Restoration

5. The Physical Cost: Hardware Cost
 On-Premise ERP requires the ownership of
hardware, its upgrading cost along with the
indirect cost of training of an IT team.
 In Cloud ERP, the hardware and training costs
are eliminated but license cost has to be paid.

6. The Time-Limits: Uptime and Productivity
In On-Premise, you will have to find out
the amount of time the system will be
available for the applications.
In Cloud ERP systems, a minimal of
99.9% uptime is provided.

7. Maintenance: Updating & Upgrading of the System
 In On-Premise ERP, the time taken for upgrading
the system will involve the IT teams’ re-arranging
the system throughout the users’ networks.
 In Cloud ERP, the upgrading is executed by the
vendor such that no system changes have to be
resolved.

8. Performance: Versatility and Accessibility
 Added to the presence of all-time system
availability, the Cloud ERP is a dynamic model
which squeezes or expands depending on the
running needs of the company.
 In a cloud-based ERP, the client has access to
real-time data through the intranet or
internet.

9. Security
 During the movement from On-Premise to
Cloud ERP, the most nagging issue is of
the level of security available .
 The verdict inclines towards declaring that
Cloud ERP is almost the same as On-
Premise ERP structures.

10. Regulatory Measures
 Security-standard systems in place are
intended to ensure the safety of cloud
companies.
 These certifications include SSAE-16
Type-II and ISAE-3402 Type-II.

11. Data Recovery and Restoration
 The key benefit of Cloud ERP is the availability
of entire backup of your data which is safe in
storage, often at multiple locations.
 In case of any issues with the On-Premise ERP,
recovery and restoration of data is almost
impossible.

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