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On Premise vs. Hosted ERP Solution: How to Choose

2/1/2011 at 4:05 pm by

A key trend that distinguishes the consumer market from the business to business environment has been the ability of manufacturers to customize their goods and services to the evolving demands of the individual. Now more than ever that individualism is taking shape and driving the B2B market. We like options…and why wouldn’t we?

Options are trickling into our buying behaviour in the ERP space and in recent years more and more small to midsized organizations are looking at on-demand software opposed to the traditional on-premise. But what makes either right for your business?

Do we look at functionality vs. deployment or do we hone in on key business drivers or KPIs to drive our decision?  The simple answer is both!

Hosted Solutions:

  • Do not want to invest or support an IT infrastructure
  • Prefer to make one convenient monthly payment covering everything from infrastructure and software support to daily back-ups and software updates
  • Are in growth-mode but still want to match internal costs against fluctuating business conditions
  • Want to be up and running quickly with minimal implementation time
  • Have multiple sites or many geographic locations but do not want to build or support remote access to existing network
  • Employ telecommuters.

On-Premise Solutions:

  • Already have an ERP solution in house and are considering an upgrade.
  • Demand a high-degree of customization, have need for custom programming services, or have an investment in hosting 3rd party software
  • Are well-established and can confidently make a five-year commitment to an ERP software investment.
  • Are prepared to undergo a 10-12 month implementation process with a value-added solution integrator.
  • Have multiple sites across geographic locations and have a supporting network infrastructure.
  • Employ an IT staff who maintain ERP software system.

Where do you think the organizations of the future are migrating too? Hosted, cloud-based ERP Systems or traditional on-premise ERP systems?

Share your thoughts in the comments below!

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About the Author

Imran brings a wealth of experience to business management and marketing. His focus combines strategic and tactical experience. Currently he is a marketing manager for one of the largest software companies in North America within the Sage Channel.

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