ERP Cloud VS ERP On-Premises: which one is right for your company?

Choosing an ERP (Enterprise Resource Planning) is a strategic decision for any company. Among the options available, two models stand out: Cloud ERP and On-Premises ERP. But which one is right for your organization? Here's a comparison to help you make the right choice.

Definition and operating principles

ERP On-Premises

On-Premises ERP is installed locally on the company's servers. The company is responsible for software management, maintenance and security.

 Benefits:

• Total control: Data remains within the company, reassuring certain sensitive sectors.
• Advanced customization: greater flexibility to adapt ERP to specific business needs at the time of acquisition.
• Vendor independence: fewer risks associated with policy changes by a SaaS provider.

 Inconveniences:

• High initial investment: Purchase of servers, licenses, customization to specific needs...
• Maintenance and upgrades: At the company's expense, requiring a dedicated IT team.
• Less flexible : Longer deployment times, more complex software updates and upgrades.

ERP Cloud

Cloud ERP is hosted on remote servers and accessible via the Internet. It is generally offered on a subscription basis (SaaS - Software as a Service), with updates and maintenance handled by the supplier.

 Benefits:

• Low initial cost: No heavy investment in expensive infrastructure and rapid deployment.
• Accessibility: Real-time data access from anywhere.
• Automatic updates: Maintenance, upgrades and patches are managed by the editor.
• Scalability: Easy to adapt to business growth.

 Inconveniences:

• Internet dependency: a stable connection is essential, but some providers now offer the option of working offline.
• Security and confidentiality: less direct control over data security. Always check that the provider offers servers based in Europe for GDPR compliance, and ask about the data backup and recovery plan it offers.

Which ERP for your company?

The choice between Cloud ERP and On-Premises ERP depends on your company's specific needs:

• Small and medium-sized businesses (SMBs) and EIntermediate-sized companies: a Cloud ERP is often more suitable due to its low initial cost, scalability and flexibility.
• Large companies or regulated sectors: an On-Premises ERP may be preferable for better data control and advanced customization.

Conclusion

The choice between Cloud ERP and On-Premises ERP is a strategic one for any company. It is based on financial, technical and operational criteria. For a fast, scalable, turnkey solution, the Cloud is an attractive option. For total control and extensive customization, On-Premises remains a relevant but costly choice, and is therefore mainly reserved for larger companies.

Consider your aims, budget and constraints before making your choice!