ERP systems can be divided into Cloud ERP systems and on-premises ERP systems according to how they are deployed, Cloud ERP system servers are deployed in the Cloud, enterprises can access them anytime, anywhere, and on-premises ERP system servers can be deployed on-premises and can only be accessed using on-premises devices. Let’s take a look at the difference between Cloud ERP and Traditional ERP with JUSTPRO (Microsoft and SYSPRO Sliver Partner) below!

What is the difference between Cloud ERP and Traditional ERP deployed on-premises:

It’s a product and also a service

ERP deployed on-premises servers is a client product that requires organizations to import software into the on-premises server through an installation disk or installer and run it through a series of steps, depending on the size of the enterprise, hardware and man power. Cloud ERP is a service, an ERP system developed through Cloud computing technology, the service side of the product is deployed in a distributed Cloud server cluster, users can access the application services provided by Cloud ERP from anytime, anywhere through PC, computer tablet, smartphone and any other device. Its characteristics are not limited by the platform, multi-application integration, data integration, high modularity, e-commerce and so on. It eliminates the need to deploy on-premises servers, a lengthy and complex implementation process, and a significant human and material effort, to some extent, to achieve out-of-the-way results, reducing the enterprise’s investment in deploying ERP.  

The way you buy is different

Traditional ERP requires enterprises to purchase a one-time installation and deployment, and it is required that a specialized IT departments can handle server and database security maintenance and upgrades. Whether it’s the initial man power or long-term maintenance costs, it’s a big expense for the business.

For Cloud ERP you can choose by year, quarter, month of paid leasing, it is more flexible, and can be deactivated at any time, reduces the initial one-time investment, enterprises don’t need to provide specialized servers and specialized IT departments. Paying by the year can achieve a fixed financial budget, so that enterprises can make corresponding adjustments. And the iterative updates to the Cloud ERP are made on the back-end Cloud server, which enables product upgrades without affecting the normal use of users, while ERPs that are Traditionally deployed on-premises servers need to purchase servers at an additional cost if they need to be upgraded.

Service upgrades are efficient

Cloud ERPs don’t only provides products, but also includes server management, information data security, functional module upgrades and other services, enterprises can customize functional modules or select a function for business management and information flow update delivery. When the product is upgraded or modified, can be modified on the Cloud server side, which makes the application in the upgrade and improvement convenience more efficient. Not only does it avoid complex upgrades such as downloading upgrades and patching after a Traditional ERP decentralized deployment, but it also greatly improves operational efficiency.

Data security differences

Traditional ERP servers are generally managed by their respective enterprises, data is also on the server, in the event of power outages or earthquakes, fires and other irresistible external factors, the loss is not only the server, and the data will not be recoverable. Cloud ERP vendors place applications and data on financial security-level Cloud hosts and Cloud databases with highly skilled firewall systems to protect against malicious attacks. On a dedicated and reliable Cloud platform, the average Cloud ERP vendor chooses to deliver multiple reliable Cloud platforms, back up data and software information, and ensure the normal use of software. Cloud ERP avoids software paralysis, data loss, and more when a Traditional ERP system fails.

How do companies choose the right ERP product?

The rapid rise of Cloud ERP continues to impact the status of Traditional ERP, enterprises choose which ERP products, should be based on their own needs to refer to.

Hope you liked the solution, when it comes to purchasing in ERPs, ensuring the quality of the purchased items and the time lines are is a key success factor in your business.

If you’d like to discuss how you can benefit from the same ideas that we’ve used to help our customers achieve ERP success over the last 20 years, feel free to contact us, we’re always ready to help. Email us at [email protected], or visit our website .

By JUSTPRO, Microsoft Partner & Solutions Provider,

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