In the past, many businesses ran their ERP systems locally, widely known as On-Premise. Whilst this deployment method has its benefits, it also has its drawbacks. You can read more about this in our other blog, where we've compared the two systems here.
Cloud ERP systems are increasing in popularity; a survey by Panorama Consulting Group with 183 respondents revealed that 64.5% had cloud ERP systems compared to only 35.5% using On-Premise.
But what exactly is a cloud ERP system?
What is SAP Business One Cloud? SAP Business One Cloud is a robust and flexible ERP system hosted at a SAP partner data centre. This deployment method has improved accessibility, enabling you to access the system from any location with any device as long as you're connected to the internet.
ERP Systems like SAP Business One Cloud are used by businesses to automate and manage their core business processes. A 2018 report by Panorama Consulting Group revealed that 95% of companies saw improvements after implementing an ERP system.
The difference between On-Premise and Cloud systems The main difference between the two is how they're deployed; on-premise systems are installed locally and require you to pay for the infrastructure needed, such as servers and maintenance.
Cloud systems are deployed on your vendor's servers, don't require you to pay for hardware or maintenance, and are a cheaper option ideal for small to medium-sized businesses. One study revealed that Cloud ERP systems can cost 50% less over four years compared to On-Premise.
Benefits of SAP Business One Cloud
Increased Accessibility: Since the system is hosted online, you can access it from any modern device with a browser, such as tablets, phones and laptops.
Costs: You won't have to pay for physical hardware or maintenance-related costs, as these are handled by your cloud vendor.
Security: As the servers won't be hosted on your premises, you won't have to worry about physical theft as your system will be hosted at a secure facility.
Scalability: Cloud systems have near-limitless scalability when compared to on-premise systems; this is because scaling on-premise systems will require you to make physical hardware upgrades to meet your new needs, whereas the flexible design of cloud systems enables you to scale resource usage based on your requirements.
Considerations for choosing SAP Business One Your business requirements: It's essential to know your business goals, objectives and challenges before deciding on the right ERP system; we also recommend you book a free demo so that one of our SAP experts can walk you through the software and show you how it'll help you grow.
Your budget: The cost of an ERP system can vary depending on multiple factors like how many users you require, whether the software needs tailoring and if you'd like additional add-ons.
Customisation: If your business requires a highly customised business flow, then On-premise systems would be ideal as they provide more scope for customisation.
If you're an SMB that needs a solution to scale with them and help you meet your goals, then we recommend SAP Business One Cloud.