ERP is one of the best solutions for businesses wanting to improve their operations. They offer a single location to manage much of the company’s operations, leading 95% of businesses to see substantial improvements after implementation.
But many types of ERP are available, whether you use a generic ERP or one customized to your needs. Let’s look at what those are.
On-Premises ERP
An on-premise ERP is a software suite companies install on their local infrastructure. Typically, they have a central server connected to the rest of the business network. The user machines then install a client that connects to the central server to retrieve data and functionality.
This type of system is great because businesses have more control over the infrastructure. They don’t rely on cloud services to stay online. A local team maintains things, keeps systems updated, and secures the data.
There are many positive aspects of an on-premise system that businesses should know.
- Lower monthly cost to software since it isn’t hosted in the cloud
- Greater customization options since businesses have direct access to the software and data
- Better security for organizations with sensitive data
- No reliance on software vendor for service
Cloud-Based ERP
Cloud-based ERP solutions are growing in popularity because of their ease of use. Businesses can use cloud solutions instead of building in-house infrastructure and pass the implementation to an experienced software provider.
Although there may be some added expenses with cloud solutions, businesses also benefit from reduced overhead through a reduced IT department. There is much less infrastructure to maintain, so cloud solutions can reduce operational complexity.
Here are some pluses worth knowing about cloud-based ERP solutions.
- Easy maintenance means team members and IT staff won’t struggle to work through potential server issues
- Scalable solutions since cloud servers can expand based on your needs without the business adding infrastructure
- Less need for in-house servers and other costly infrastructure
- Greater accessibility since the ERP solution is built for the web
Hybrid ERP
Hybrid ERP solutions are a mix of cloud and on-premise ERP software. This model is for organizations with regulatory requirements that require some operations to be on-premise but can still take advantage of cloud solutions in some situations (check out this NetSuite ERP ROI for calculations on different ERP options).
This solution has the benefit of allowing businesses to secure whatever data they need on-site. They can do this with minimal hardware and rely on cloud solutions for everything else.
Here is what to look forward to with hybrid ERP software.
- Custom solutions that organizations can tailor to their unique needs
- Scalability through cloud services combined with the privacy of on-premises security
- Comply with regulations that require extra security precautions for sensitive data
- Allows for integrations with legacy software while upgrading infrastructure
Learn the Types of ERP
Picking the right ERP is a big decision. You’ll integrate it into most of your business systems as a single source of truth. Make sure you research the types of ERP and what they offer to find the best ERP implementation for your business.
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