Cloud ERP vs. On-Premise: How do you know which is best for you?

It is no secret that, in the wake of the pandemic, companies have had to

Accelerate your digital transformation process to ensure the continuity of your business

business. In light of this, the search for state-of-the-art business management systems

generation has been strongly intensified, causing the emergence of

A dilemma: what's better? A cloud-based ERP or an on-premise one?

Whether a company is looking to implement a new ERP for a

cost reduction, because the manufacturer has decided to no longer support the

version you currently have installed, or by an upgrade of your

business processes, the reality is that the choice between a cloud solution

or an on-premise can become somewhat complicated or confusing in many

occasions.

Especially when you are not an expert in the technical aspects involved in each

one of these technologies.

That is why, in this blog, we will explain the main differences that

exist between one system and another from a financial point of view, so that

you can make the best decision for your organization and thus ensure that your

investment generates maximum returns.

Cloud ERP vs. on-premise: Which is more cost-effective?

Cloud ERP vs. on-premise : Which is more cost-effective?

Starting from the fact that on-premise solutions require the installation of a

robust physical infrastructure, in addition to a certain degree of maintenance and

technical knowledge, we can realize that a cloud ERP offers

great benefits in terms of profitability thanks to the savings generated

in:

• IT assets

• Upgrade costs

• Cost of service

Let's analyze each one.

1. Investment in IT assets

Unlike on-premise systems, one of the most important advantages offered by cloud-based business management systems is that they allow you to forget about the infrastructure-related expenses involved in these types of solutions (servers, applications for backing up information, etc.). This way, the company's investments can be fully focused on its core business, allowing it to maximize its capital.

2. Upgrade costs

Likewise, when an organization decides to implement an ERP system in the cloud, it obtains the certainty that it will always be kept up to date, thanks to the fact that, under this modality, software updates are carried out automatically; avoiding the payment of complex update processes or data migration. On the other hand, you should know that, when an ERP is installed on-premise, it is most likely that your investment will cease to be productive in the medium and long term, since as we know, technology advances by leaps and bounds, causing this type of systems to quickly become obsolete over time.

3. Cost of service

Finally, if we weigh the factors we just mentioned against the overall cost of an ERP service, we clearly see a significant difference in cost optimization that a cloud-based solution can offer compared to a traditional one. Thus, we can conclude that cloud-based ERP software is definitely an excellent alternative for managing business operations and processes today, as in addition to the economic benefits it provides, it allows for a business that is 100% controlled and audited at all times.

At Tekiio , we understand the importance of these types of investments for companies. That's why we have a multidisciplinary team of highly experienced specialists trained in the strategic implementation of the world's leading cloud ERP: Oracle NetSuite.

Contact us and let's boost your business processes!