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What’s an ERP?

The Enterprise Resource Planning


(ERP) structure of an organization forms
the basis of data collection and analysis
which determine a series of business
decisions taken regarding the product cost,
marketing strategies, and service delivery.
On Premise V/s Cloud ERP

On-Premise ERP involves the In the Cloud-ERP structure the


installation of servers (for data vendor’s cloud computing
collection and processing) within platform is used to process the
the physical locus of the office. data of the company.
Differentiating between Cloud and On-Premise ERP
The factors considered while differentiating:
 Security  The Physical Cost

 Regulatory Measures  The Time Limits

 Data Recovery and Restoration  Maintenance

 Performance
The Physical Cost: Hardware Cost
 On-Premise ERP requires the ownership of
hardware, its upgrading cost along with the
indirect cost of training of an IT team.

 In Cloud ERP, the hardware and training costs


are eliminated but license cost has to be paid.
The Time-Limits: Uptime and Productivity
In On-Premise, you will have to find out
the amount of time the system will be
available for the applications.

In Cloud ERP systems, a minimal of


99.9% uptime is provided.
Maintenance: Updating & Upgrading of the System
 In On-Premise ERP, the time taken for upgrading
the system will involve the IT teams’ re-arranging
the system throughout the users’ networks.

 In Cloud ERP, the upgrading is executed by the


vendor such that no system changes have to be
resolved.
Performance: Versatility and Accessibility
 Added to the presence of all-time system
availability, the Cloud ERP is a dynamic model
which squeezes or expands depending on the
running needs of the company.

 In a cloud-based ERP, the client has access to


real-time data through the intranet or
internet.
Security
 During the movement from On-Premise to
Cloud ERP, the most nagging issue is of
the level of security available .

 The verdict inclines towards declaring that


Cloud ERP is almost the same as On-
Premise ERP structures.
Regulatory Measures
 Security-standard systems in place are
intended to ensure the safety of cloud
companies.

 These certifications include SSAE-16


Type-II and ISAE-3402 Type-II.
Data Recovery and Restoration
 The key benefit of Cloud ERP is the availability
of entire backup of your data which is safe in
storage, often at multiple locations.

 In case of any issues with the On-Premise ERP,


recovery and restoration of data is almost
impossible.
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