Cloud-based ERP software refers to enterprise resource planning tools and applications users access through the Internet. Unlike with desktop ERP, you can manage every area of your operations from anywhere.
On-premise ERP software, rather than storing data in the cloud, archives information within a company’s internal server infrastructure.
While this type of ERP system provides companies with more customized options, it tends to be more expensive than cloud-based ERP systems and needs to be updated with services in order to stay current. It also takes more time to implement an enterprise resource plan using on-premise software than cloud-based ERP software.
Relatively new and small businesses, without clear business procedures and sophisticated IT, are likely to find on-premise ERP software cumbersome, complicated, and expensive.
The only real advantage of on-premise ERP software is its ability to be customized, which may provide a greater ROI for larger businesses with complex needs.
Typically, the size and type of a business dictates whether cloud-based ERP or on-premise ERP is the right choice. For example, a relatively new small business that doesn't have many well-defined business processes or sophisticated IT can implement a cloud-based ERP solution quickly and easily. However, an older, larger business may need a customizable solution that takes longer to implement.
Today, businesses of all sizes, across a spectrum of industry sectors, are using cloud-based software to manage almost every area of their business.
CIO, in conjunction with Sage, carried out a survey of 100 CIOs and senior IT decision-makers to determine their cloud usage and views on cloud-based business software.
We also garnered the best advice from those who have been using enterprise cloud applications for several years. We discovered that a huge majority of our respondents (71 percent) are using business-critical cloud applications, with most of them praising the cloud for its efficiencies and ROI (90 percent of respondents report a return on investment from cloud implementation).
Of the respondents using business-critical cloud applications, such as ERP, 54 percent state they invested in such applications less than two years ago. A significant share, 46 percent, have been operating business cloud apps for over two years, and one tenth of them for more than five years, thus indicating a reasonably high level of maturity among organizations.