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Hosting Your Business Applications On-Premise or in the Cloud – What That Decision Can Mean to Your Business


Everyone is talking about the cloud and moving their business applications there – but does it make the most sense for your own business goals? As you consider your ERP options, one of the most important decisions you’ll need to make is whether to select a cloud-based ERP solution or one that’s installed locally, in-house.

The difference between on-premise and cloud  is that on-premise solutions are installed locally on your company’s hardware and servers and managed by your IT staff, while cloud (SaaS) is provided as a service over the internet. With this type of deployment, the software is not licensed or owned by the company; instead it is provided as a service and is paid on a subscription basis.

If you are trying to evaluate what deployment option is best suited for your SMB, we have developed a list of pros and cons to help you make an informed, strategic decision:

Benefits of Cloud Computing:

  • ROI – One of the biggest benefits is saving your current resources. You don’t need dedicated IT staff to ensure your systems are up and running and you no longer have to manage your own hardware and software. This opens up office space, eliminates maintenance costs, and reduces electricity use.
  • Faster Implementation – Cloud solutions are managed and hosted by the vendor therefore you do not need to set up or install any hardware or software
  • New Resources – Add and remove resources as needed as you grow without changing hardware
  • Data Back-Ups – As opposed to the risk of crashing your in-house server(s) and losing data, third-party hosted ERP clouds are there to back you up

Benefits of On-Premise:

  • Cost of ownership – On-premise software is conventionally sold as a perpetual license with an up-front cost but pays off over time
  • Data Security – When software is hosted on-premise you don’t need to worry about data leaks, security threats, or other data security problems. When it is hosted in the cloud, the cloud provider has access to and control of the hardware and software
  • Customizations and Updates – On-premise software lets you customize the timing of scheduled maintenance and software upgrades
  • Integration – With on-premise software solutions, integration with multiple applications and databases is commonplace. SaaS solutions may have limitations with integration and interfacing to essential applications

When deciding on deployment options for your ERP solution, it’s important to first educate yourself on your options before making a decision. ADS can work with you to help evaluate what solution and deployment options are the best choice for your business. Contact a certified ADS consultant to discuss the cloud vs. on-premise today.

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