What is On Premise ERP?

Selecting and deploying a new ERP system is the best thing any company can do. If you plan to do this, perhaps you are stuck between on-premise and cloud ERP. We will discuss on-premise ERP as our main topic in this article. You will then use our information to decide if an on-premise ERP is the best choice.

Additionally, you will learn how on-premise ERP software differs from cloud ERP and off-premise ERP. In-depth knowledge about your ERP options will assist you in selecting the best business software for your needs. If you are ready, let us proceed to the next step.

Features of On-Premise ERP

Most ERP suppliers provide cloud deployment solutions. Hence, it is easy to think that on-premise ERPs have lost their meaning. It is not so because some SME companies still run these ERPs, and others want to install them. On-premise enterprise resource planning tools stay in an in-house server.

On-premise is a traditional ERP system offering less flexibility than any cloud-based system. By learning the features of an on-premise ERP platform, you can accept it or proceed with Cloud ERP.

Benefits of On-Premise ERP

On-premise ERP software is not so popular nowadays. Nonetheless, it has its advantages. First, the company has complete software control. It hosts the software in its servers and does not give any third party a chance to control or manipulate it.

Thus, it can use the best techniques to ensure robust software and data security. A legacy ERP is more secure than any cloud ERP. It also depends on cloud vendor and the service accessed hosting Cloud ERP. Moreover, IT professionals can customize the software based on the requirements and goals of the organization.

It can be the best software for organizations that run in less-crowded and unique industries. On-premise ERPs are perfect for large-scale companies with enough capital and a stable infrastructure to host, upgrade, and secure data.

Selection criteria for on-premise ERP

It seems that everyone wants a cloud-based ERP platform. However, it does not mean that all companies need Cloud ERPs. Some organizations can run legacy ERPs with some cloud software properties. When considering the best selection criteria, you should focus on the following:


1. Difference between On-Premise ERP and Cloud ERP

The deployment technique is the main factor differentiating on-premise from cloud ERP. While the former stays in an internal company server, the latter remains in an internet-based third-party server.

Another difference concerns the upfront cost of setting up each ERP type. With on-premise, the upfront fees are high as the company provides the entire infrastructure and money to purchase the software license.

In contrast, a cloud ERP is a SaaS-based subscription software package. Lastly, the company maintains its on-premise software while the vendor upgrades and supports the cloud-based ERP solution.

2. Is on Premise considered Cloud?

Typical on-premise software works on a company’s server, not the internet. However, a company can choose a hybrid cloud solution by hosting a private server.

3. What is On-Premise vs. off Premise?

A software solution hosted in an internal computer server but getting support from a third party is an on-premise solution. A solution living on a third-party server and receiving support from another entity is an off-premise solution.

4. Is Private Cloud the same as on-Premise?

No, there is a difference between a private cloud and an on-premise server. A private cloud stays in an offshore location or internally within the premises. An on-premise cloud is usually within the business premises.

An on-premise vendor allows companies to host a private cloud in their internal data centers. Only one company can own and use a private cloud ERP and its infrastructural resources.

5. Is Cloud more secure than on-premise?

A cloud ERP solution is not as secure as an on-premise one. On-premise ERP is an internal solution with no interference from third parties. So, it is hard for anyone to tamper with sensitive data.

A cloud solution does not offer robust security because the software vendor maintains the software. Customers have no complete control of some of their data.

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