Choosing a modern enterprise resource planning (ERP) solution is just one step toward gaining valuable control and insight of business operations. The second step is deciding whether to deploy in the cloud, on-premises, or using a hybrid solution that includes both options. Here is what you need to know about your deployment options.
- Know what you have on-site: If you already have the hardware needed to run modern ERP solutions and want complete control over those resources, then on-premises may be appropriate. However, if you need to update aging infrastructure, need scalable ERP for seasonal or fluctuating headcount, or want anywhere and anytime access, then a cloud deployment could be a better fit financially.
- IT resources: Companies with a team of IT experts can manage the hardware plus support troubleshooting or maintenance of ERP solutions. In some cases, IT departments also take a proactive approach towards identifying the next best technology that can improve business operations. However, if your IT department isn’t quite what it should be or already overloaded with work, then a cloud deployment can put that responsibility on your software provider. Your provider offers technical support, often remotely, and maintenance and upgrades are completed automatically.
- Security: Your software provider can provide security assistance for on-premises deployments; however, much of the support and maintenance will be largely left up to you to manage. Cloud deployments offer security, often partnering with Fortune 100-class data center providers that offer backup and recovery systems, redundancy, and the costs are spread across the multi-tenant users.
- Budget considerations: On-premise ERP deployments require software licenses or subscription fees, implementation and customization costs, training, backup, or other maintenance costs. It is possible to keep costs under control depending on the extent of customizations and number of users. Cloud deployments often have a subscription fee as well as fees for customization, implementation, and training. Maintenance is often done behind-the-scenes to prevent business interruptions.
- Time: On-premises deployments take a little longer, mostly due to hardware upgrades or changes at the very beginning of the process. Cloud deployments don’t have as much set up time and can often be completed faster.
Both on-premises and cloud options can support ERP systems with success. Contact BTerrell Group for additional information and guidance with choosing the best deployment for your specific business needs.
By Brian Terrell of BTerrell Group, LLP, Intacct and Sage ERP & CRM provider based in Dallas.