Advantages of cloud ERP systems compared to on-premise solutions

On-premise ERP systems require high investments in hardware, licenses and IT infrastructure. In addition, there are regular maintenance costs and IT staff to operate and update the system. Cloud ERP, on the other hand, works on the basis of a subscription model (SaaS - Software as a Service), which eliminates high initial costs. Maintenance, updates and operation are handled by the provider, allowing companies to better calculate and optimize their IT costs.

Cloud ERP systems offer a high level of scalability, as companies only use the resources they really need. As the company grows, the system can be easily expanded - without expensive hardware upgrades or complex implementation processes. On-premise systems, on the other hand, often require extensive and costly expansion of the IT infrastructure.

On-premise ERP requires regular updates, which often have to be installed manually. This costs time and money and can lead to system downtime. Cloud ERP systems, on the other hand, are continuously updated without the company having to worry about maintenance or security patches. As a result, the system always remains state-of-the-art and secure against cyber threats.

A cloud ERP system can be accessed from anywhere with an internet connection. This is a decisive advantage, especially in times of remote work and international teams. On-premise systems, on the other hand, are usually tied to local networks, which limits flexibility.

Many companies believe that on-premise ERP is more secure because they retain full control over their data. However, cloud providers often have significantly better security mechanisms than individual companies could implement themselves. Cloud ERP providers rely on encrypted data transmission, geo-redundant backups and modern security protocols to minimize data loss or attacks.

The introduction of an on-premise ERP can take months or even years, as hardware has to be procured, software installed and IT staff trained. Cloud ERP solutions, on the other hand, can often be up and running within a few months or in a very short time, as they can be used immediately via the browser or an app.

Cloud ERP systems often offer open interfaces (APIs) that enable easy integration with other applications, such as CRM or e-commerce platforms. On-premise systems often require individual adjustments and long implementation phases in order to communicate with external applications.