Many business owners and executives find it difficult to gauge the optimal location for their ERP, whether on-premise or in the cloud. There are several benefits that each model can offer, as well as unique drawbacks to either situation. Here are just 3 important factors to consider when making your decision:
CAPEX vs. OPEX
Capital assets can be wonderful things. If your company owns the hardware and IT infrastructure required to perform daily business operations, then that means you won’t have to worry about as many regular operating expenses.
On the other hand, capital expenses can also be cost-prohibitive. You may not be able to justify such a hefty price-tag upfront when cloud-based services can easily accommodate your ERP at a fraction of the cost.
Many on-premise IT systems have limited capabilities when it comes to business intelligence and data analysis. On the other hand, cloud-based platforms developers are constantly improving their clients’ experience with business intelligence, such as by implementing easy data access processes. Additionally, cloud solutions allow for an enhanced level of scalability compared to on-premise ERP.
A Focus on Core Competencies
On-premise ERP systems require staff and/or contractors that have extensive technical skills and diverse professional specialties. IT hardware requires regular inspection and maintenance; strict security protocols must be established and periodically audited; and data analysts may have to constantly process and interpret new streams of information.
cloud-based ERP hosting helps to streamline and even eliminate the need for some of these operations. Instead of focusing on IT maintenance and security, companies that utilize cloud-hosted ERP can focus on their core competencies, such as providing an optimal customer experience.
If you are unsure of which approach would be best suited for your specific business needs, reach out to us at Consultare. Our ERP implementation experts can guide you to the optimal decision for your company.