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, stores information within a company’s internal server infrastructure.
While this type of ERP system provides companies with more custom options, they tend to be more expensive than cloud-based ERP systems and need to be updated and services to stay current. It also takes longer 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 troublesome, complicated, and expensive.
The only real advantage of on-premise ERP software is that it can be customized, which may provide greater ROI for larger businesses with complex needs.