Cloud-based ERP software refers to enterprise resource planning tools and applications that users can access via the internet. You can manage every area of your operations from anywhere, unlike desktop ERP.
Rather than storing data in the cloud, on-premise ERP software stores information within a company’s internal server infrastructure.
While this type of ERP system provides companies with more customisable options, they tend to be more expensive than cloud-based ERP systems. They need to be updated and serviced 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 cumbersome, complicated and expensive.
The only real advantage of on-premise ERP software is that it can be customised, which may provide greater return on investment (ROI) for larger businesses with complex needs.