There are many choices when considering an ERP system for your business, there are cloud-based ERP such as NetSuite Cloud or an on-premise ERP. With cloud technology being the new wave of ERP many are leaning towards the implementation of a cloud-based solution for their business requirements. The biggest difference between cloud and on-premise really comes down to on-premise solutions being installed internally on the organization’s hardware and maintained by in-house IT support. A cloud-based system is provided as a SaaS (software as a service) where it is centrally managed in the cloud by an ERP provider. Here are some benefits, challenges, and factors that you should consider when contemplating which one to use for your business goals & business management software.

IT Costs – NetSuite cloud ERP vs On-Premise ERP

When going with an on-premise system there is an upfront investment and management cost of entry, which include servers and tangible hardware that the system requires. In this scenario, organizations would require an experienced IT team to manage systems and maintain hardware and more, which adds to additional investment, as this team would be needed often. Additional costs are made up of capital costs, operational costs and indirect business costs.

Opting for NetSuite Cloud ERP allows you to benefit from smaller initial costs. Costs include implementing the software customized to your business operations, then simply accessing it through a web browser. Basically, the cloud ERP provides both a hosting service and maintenance of all the IT infrastructure of the organization. This method allows for the system to always be active, secured data and that updates are always done seamlessly without interrupting previously implemented customizations. A cloud computing environment allows resources to be allocated towards innovation and business objectives. An industry study has also concluded that cloud-based software can cost up to 50% less than on-premise software.

System Maintenance – NetSuite cloud ERP vs On-Premise ERP

When the time for system maintenance comes,  on-premise IT staff must install the systems upgrades across multiple computers and re-implement the customizations and integrations that were previously being used. As new enhancements and updates emerge this is a procedure that will always need to be completed and is sometimes not easy to re-implement. Due to this tedious task, many businesses decide to avoid upgrades and upkeep leaving them with outdated systems running their business operations.

In comparison to NetSuite cloud, the system is constantly being upgraded and maintained by the cloud provider remotely so that the organization is always running the latest cloud operating system. Due to this cloud-based technology integrations and customizations have the capacity to be carried forward without additional investments.

Performance – NetSuite cloud ERP vs On-Premise ERP

Cloud services are designed in such a way that they are built from the ground up for maximum performance, which ultimately delivers better results than on-premise counterparts. This can mean that cloud systems have better application ability than traditional on-site systems. Cloud software architecture also has the capability to make adjustments when it sees a change in trends. It forecasts and automatically adjusts so that the company can handle a new surge. The real-time data feature can be accessed at any moment, whether it’s mobile or in the office, without accruing additional expenses. These features give Netsuite cloud the advantage over on-site systems because of the better performance, accessibility and security allowing customers to fully trust the product.

Deployment Time – NetSuite cloud ERP vs On-Premise ERP

When it comes to deployment time, a few things to consider is that both systems require a well-thought-out implementation plan. Some benefits of cloud software in this case offer more clear advantages when business owners begin to consider the time of installation. Due to no additional operating expenses, such as hardware, a cloud computing model offers flexibility to businesses because there is no time limits to procuring and installing the IT infrastructure. A fast and quick rollout is easy whether within different regions or subsidiaries. The time savings is quite significant in comparison to the on-premise ERP: Cloud ERP 3 to 6 months versus 12 months. As a business grows, NetSuite cloud has the capabilities to allow for ease of scalability while also offering flexibility to add more users to the system. On-premise hosting does not allow for such freedoms, often times additional hardware will be required.

Key Benefits of Implementing NetSuite Cloud ERP over an On-premise ERP

  • Reduced costs
  • Enhanced security
  • Mobility
  • Universal Access
  • Scalability
  • Fast deployment time

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