Incorporating the right Enterprise Resource Planning (ERP) software solution is not just choosing the right product. It’s just as important to know how you will access the software. Today, there are various hosting models available in addition to having it on a local computer. Therefore, you should consider the hosting model that best fits your business. The following is a breakdown of the 3 basic hosting models for ERP software:
When making use of the on-premises ERP system, the organization needs to have the entire ERP system installed locally on its company’s hardware and servers. While it provides complete control and security, it requires internal expertise and can be costly. Companies spend a large amount of their time and money on data centers and maintaining this infrastructure. The full responsibility of the infrastructure falls upon the business.
Cloud ERP also known as Web-Based ERP is becoming more popular. With Cloud ERP, your business has the option to pay a subscription fee to access the software rather than buy it. The software and hardware are maintained by the hosting company eliminating the need for internal infrastructure expertise. Having your software in the cloud allows you to access it from anywhere without connecting to your internal network. The downside is that the Cloud ERP vendor has complete control and access to your software and data.
The term Hybrid ERP was first used to describe best of breed applications integrated to create the ERP. The definition has been widened to include software application deployments that combine on-premise and cloud computing applications. A hybrid approach lets you take advantage of the technology and access of the cloud and the control of an on-premise installation. Some companies prefer their accounting and operations on-premise but have their CRM in the cloud.
Ultimately, when it comes to any software, especially company wide systems, there is no ‘one size fits all’. When decided on a system and hosting model, you should consider what options will best fit your business requirements. Each hosting module has a set of benefits and limitation and you should carefully research each option to find the perfect fit.