Choosing between on-premise enterprise resource planning (ERP) software or cloud-based ERP software is an ongoing challenge for today’s businesses.
On-premise deployment offers you more control over your data, as it’s not being migrated to the cloud, so businesses that are concerned with privacy and security may be wary of using cloud ERPs. The Business2Community editor refers to this as “migration anxiety,” saying:
... one element keeping some companies lagging behind is a case of migration anxiety. They’ve spent thousands investing in a secure infrastructure and are rightfully protective of their critical data.
A possible solution for companies with migration anxiety is a hybrid ERP. Hybrid ERPs allow core applications and programs to reside on-premise for a duration while sales and marketing data, for example, migrate to the cloud. This is especially important for accommodating today’s mobile sales forces using mobile devices.
Another reason to use cloud-based ERPs, however, is the fact that enterprise software companies are aiming to be more customer centric (discussed in a Forbes article here]. It’s easier to be customer centric in the cloud because the cloud is less expensive, more scalable, and often more secure. The right software company can provide real-time production management, scheduling, and even product traceability – all in the cloud. Cloud-based ERPs allow tracking of manufacturing, distribution, and supply chain transactions as well.
Whichever option you choose, however, the real concern here, as Satya Nadella, Microsoft’s CEO, suggests in a recent Forbes interview, is more about finding the right balance than choosing a single solution:
To me what matters is having the right mix of ... value. I don’t think of my server business as somehow “old school” or “legacy.” I actually think of the server as the edge of my cloud.
Contact Oates & Company to learn more about both on-premise and cloud-based enterprise resource planning systems.
