Cloud-based ERP software refers to enterprise resource planning tools and applications that 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, it tends to be more expensive than cloud-based ERP systems. It also needs to be updated and serviced to stay current, in addition to taking longer to implement.
New and medium businesses without clear business procedures and sophisticated IT infrastructures 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 ROI for larger businesses with complex needs.