The ERP is the central nervous system of a company. It bundles data from different business areas and enables efficient, centralized control of all work processes. The user interface should be adaptable so that each department can use the system according to its specific tasks.
In customer service, the ERP system is often used to process orders. The purchasing manager uses the system to plan orders from suppliers, and the business analyst segments data and creates clear sales reports. While many employees access the ERP system at their workplace, others need to be able to work with it on the move: For example, a warehouse employee needs a barcode scanner for order picking, while a field sales representative records conversations and orders directly via the microphone on his cell phone during a customer appointment.
A powerful ERP system should effortlessly meet all of these requirements while centralizing data from various sources. With increasing digitalization, every company is sooner or later faced with the decision to introduce a new ERP system. The crucial question is: should the software be cloud-based or hosted locally (on-premise)?
The differences between Cloud ERP and On-Premise ERP
The fundamental differences between a cloud ERP and an on-premise ERP lie in the type of deployment, cost structure and responsibilities. A cloud ERP is hosted in an external data center and is accessible from any location via the Internet. This solution offers companies the opportunity to avoid expensive hardware investments, as the hosting provider provides and maintains the infrastructure. Updates and adjustments are usually carried out automatically and without interrupting ongoing operations.
An on-premise ERP, on the other hand, is installed in the company itself and requires its own servers and IT resources for maintenance and updates. This solution offers more control, but also higher initial costs and long-term commitments. These differences then affect the cost structure: while cloud ERP systems are financed through monthly or annual subscription fees, the on-premise variant represents a capital investment that is supplemented by ongoing maintenance costs.
There are also significant differences in terms of security. Cloud ERP systems benefit from the hosting providers' advanced protection measures, such as encrypted backups, AI-supported virus protection or 2-factor authentication. Companies that operate an on-premise ERP, on the other hand, are responsible for protecting their own data and must configure protection mechanisms themselves.
Digitalization brings with it growing amounts of data. Outdated ERP systems often cannot cope with this volume of data. Long loading times, system crashes or inefficient reports are the result. If the ERP system slows down your business processes, an upgrade is unavoidable.
What to look for when choosing between a cloud ERP and an on-premise ERP.
Choosing between a cloud ERP and an on-premise ERP is an important decision that should be carefully considered. We recommend that you start by asking yourself the following questions:
- Do you prefer a predictable monthly cost structure or high one-time investment costs with later variable maintenance costs?
If a predictable cost structure is more important to you, a cloud-based ERP system might be a better choice. - Do you prefer to manage security aspects internally or do you want to use the security tools of a cloud provider?
A cloud ERP can simplify security management, while an on-premise ERP gives you full control but also responsibility. - Do you have the IT resources to operate and manage an on-site ERP system?
Operating an on-premises ERP system requires a qualified IT team, whereas with a cloud ERP system the provider takes over these tasks.
The advantages of the cloud ERP solution from Iptor multiflex
At Iptor multiflex, the focus is on offering companies a simple, secure and scalable solution. The cloud ERP system enables quick implementation and flexible access - whether from the office, home or on the go. Security features such as two-factor authentication and encrypted databases ensure that sensitive information is well protected. A full list of benefits can be found below:
- Worldwide access without restrictions on the choice of device (Android, MacBook, Ipad, etc.).
- No investment costs for hardware or server license.
- Simple, monthly update of the ERP system
- Shorter project times and easy onboarding
- Reliable security mechanisms:
- AI-powered antivirus software with detection and active reporting of potential attacks (24/7)
- 2-tier firewall system.
- 2-factor authentication
- Encrypted backup of the database in a Tier3 data center
Ultimately, the decision between a cloud ERP and an on-premise ERP depends on the company's specific requirements and priorities. Cloud ERP offers flexibility and a predictable cost structure, while on-premise solutions can make sense for companies with a strong IT infrastructure of their own. Iptor multiflex supports you in this decision and offers you tailor-made solutions for your needs. Arrange a free consultation and let's find the right solution for your warehouse management together.
