A beginner’s guide to the three main types of ERP system deployment
There are various factors to consider when selecting an enterprise resource planning (ERP) system for your business. You must consider budget, existing IT infrastructure, size of IT department, and flexibility and control over the system – to name a few. Regardless of your industry, an ERP system can result in a more effective and efficient business. GISuser.com breaks down the three main types of ERP system deployment to help you figure out which is best for your company.
- On-premise ERP – “This is the traditional method, where the software is manually installed on your company’s own computers and servers. It gives you total control over the system, although this also means that you are responsible for issues such as maintenance, security, troubleshooting, and back-up of the data and software. It usually involves a large up-front cost to buy the license, but gives you greater flexibility. This method is generally only used by large corporations.”
- Cloud ERP – “This is where your software and data are hosted on a remote, third-party server. The up-front cost is much lower and instead you pay a regular subscription fee for access (which over a long enough period of time could of course exceed the upfront cost of on-premise ERP). Maintenance and updates will all be handled for you, as well as security and back-up of data. However, it’s important to remember that if you work in an industry with particularly sensitive data the level of security may not be sufficient for your needs. This method is popular with small and medium-sized businesses.”
- Hybrid ERP – “This is an increasingly common option and as the name suggests is a blend of on-premise and cloud deployment. It may be suitable for you if your business has an existing on-premise system that you want to blend with the cutting-edge technology of a cloud system. It’s flexible and brings you the best of both worlds (although perhaps not to the same level), but it can be complex.”
