If you have determined that your organization needs to adopt a modern enterprise resource planning solution to support its continued success, you have an important decision to make: Either you implement a cloud service or on-premises enterprise resource planning (ERP) software.
Your decision will have serious implications for your business. As such, you will need to consider a variety of factors before settling on a deployment configuration. Some of the factors you must be mindful of include the following:
Cost
Any ERP implementation requires careful planning and a substantial amount of resources. That said, the time and cost commitment associated with your deployment will vary greatly depending on which configuration you choose.
If you choose a cloud-based configuration, your upfront costs will be far lower, but you will have to pay recurring licensing and usage fees. On the other hand, an on-premises configuration includes significant initial costs and ongoing investments. Your internal team will have to continuously maintain and upgrade your servers to support the evolving needs of your business.
In terms of cost, cloud-based configurations provide a clear edge.
Learn more in Determining the Hidden Costs of Legacy ERP.
Security
Security is very likely a paramount concern for your business, especially when it comes to your ERP software. Remember, your ERP solution will be a single source of truth that contains the majority of your organizational data, which makes it a ripe target for hackers interested in getting their hands on valuable information.
An on-premise ERP solution puts data security in the hands of your internal team. Even if your team is talented, managing your own software data security alone can be tedious and challenging. When you use a cloud configuration, on the other hand, you and your vendor share the responsibility of protecting business data.
Once again, the cloud configuration represents the better option.
Learn more in Data Security And Cloud ERP: How Safe Is Your Data In The Cloud?
Implementation
Wanting to maintain total control over the implementation process requires opting for an on-premises configuration, and while such an approach does keep you in control of your own destiny, going it alone while implementing complex new software can lead to an extended deployment process, meaning your time to value will increase, and your ROI may be diminished.
Working with a reputable deployment partner can condense your implementation timetable, as you can tap into their expertise and resources to make the transition process effortless. Leading deployment firms will even help you configure the platform to meet your company’s needs.
The bottom line here is that a cloud configuration offers an easier implementation process.
Scalability
If you have ever managed an on-premises solution before, you know that scaling it can be a significant undertaking. To enhance the capabilities of an on-premises platform, you must install additional servers and supporting hardware, but doing so is a time-consuming and expensive process that can discourage you from making necessary upgrades, encumbering business growth as a result.
Cloud ERP software is exceptionally scalable. As your needs evolve, the vendor can easily allocate additional resources to your business. That scalability makes a cloud configuration the ideal option for organizations pursuing long-term growth.
Customization
During the initial deployment process, you can configure and customize an on-premises solution in accordance with your business goals. However, as the developer releases upgrades, your team will have to manually re-implement your customizations. Your in-house IT team will also have to continuously monitor and maintain your hardware, software, and licenses to keep your ERP platform operating as designed.
Selecting a cloud ERP configuration eliminates the hassle of maintaining your platform, as updates will be pushed out automatically as the developer releases them. That ensures that your software is always equipped with the latest upgrades, bug fixes, and patches. With a solution like Acumatica, you will enjoy the same level of customization as well.
Prepare for Your Cloud ERP Transition with ASC
If you were keeping score, a cloud-based approach has gone five for five, meaning it is clearly the superior configuration for your ERP software, but regardless of whether you have settled on a hybrid, on-premises, or cloud ERP software configuration, Acumatica represents the ideal platform for your business.
Acumatica Cloud ERP supports all three deployment strategies natively, meaning you can use a standard web browser to access your software. You can also precisely configure Acumatica to address the unique needs of your organization.
To streamline the process, you should consider connecting with Advanced Solutions and Consulting, a certified Acumatica partner. At ASC, we can help you decide which configuration best aligns with your goals and objectives. We can also facilitate a frictionless transition and ensure that you enjoy a strong return on investment. Schedule a free consultation or watch our Acumatica demo to learn more.