An ERP system in the cloud or the on premises?
The cloud model is an especially interesting offering for small and medium-sized enterprises with no IT infrastructure. For many companies, purchasing servers and hardware as well as employing IT staff is the barrier they are not able to break. Contrary, cloud computing enables you to reduce initial costs to the minimum. The ERP system based on the cloud does not require huge initial investment.
In the case of large companies, the situation is different. Such organizations usually possess an advanced IT infrastructure, therefore on-premise deployment seems an obvious solution. However, even such companies more and more often decide to deploy ERP systems in the hybrid model. This means that a part of their processes is managed on local servers and the rest is moved to the cloud.
Scalability is one of the greatest benefits of cloud deployment. This enables users to optimize performance parameters at any time, depending on their present needs. It is also possible to set up performance parameters for specific days in each month. For manufacturing companies, it is possible to increase the performance capabilities of virtual machines for a specific time period based on the manufacturing cycle. Scalability also means that your company pays only for the resources it actually uses.
The savings your company can achieve by eliminating costs due to infrastructure maintenance, server and hardware purchases as well as IT staff employment is another benefit of deploying the ERP system in the cloud. In the case of a SaaS solution, the provider is responsible for security and reliability of the platform.