On-Premise vs Cloud-Based ERP: Which One is Better?

On-premise or cloud-based ERP software in India? It is a critical decision for any business. Both have their own features, but which one is better? Knowing which one is best for your business is important as it can affect your growth, budget, and resources.

In this blog, we are going to explain the major differences between cloud-based and on-premise ERP softwares.

What is On-Premise ERP?

On-premise ERP (Enterprise Resource Planning) software is used to manage various aspects of a business that runs locally on a computer in the company’s office. Companies have full control over the ERP system. These systems are typically expensive to install, maintain, and scale.

What is Cloud-Based ERP?

A cloud-based ERP software is stored on the cloud and can be accessed via the internet from any computer. Companies do not need to own a system that can run the ERP software. It is simple to deploy and scale. There is also no setup cost, just subscription fees.

Difference Between On-Premise and Cloud-Based ERP

• On-premise ERP is limited to the company network. Cloud-based ERP can be accessed from anywhere via the internet.

• Cloud-based ERP offers full control, while on-premise ERP offers limited control.

• Unlike on-premise ERP, additional modules can be easily added to cloud-based ERP.

• On-premises ERP systems have maintenance costs. Cloud-based ERP costs are predictable because they consist solely of subscription fees.

• The upfront cost is higher for on-premise ERP than for cloud-based ERP.

• Updates in on-premise ERP need to be done by the in-house IT team, while updates in cloud-based ERP are done by the vendor, which are quicker.

• The security and maintenance are done by the vendor for cloud-based ERP, while they are done by the in-house IT team for on-premise ERP. Thus, cloud-based ERP is more cost-efficient as it does not require you to hire a workforce to maintain the ERP system.

Conclusion

As you can see, cloud-based ERP is clearly the better option, especially for small and medium-sized businesses. If you are thinking of switching to a cloud-based ERP or looking to integrate an ERP in your business, you can contact ZipERP. They work closely with their client to implement web based ERP software solution in India, and they also offer various modules.