The Top Advantages of Cloud ERP And Local ERP

PostedOn: 2018-08-10 11:54:25

When it comes to choosing an ERP system for a company or business, we find a multitude of options available. But undoubtedly, one of the main criteria on which we base our decision will be whether we opt for an ERP cloud solution or a locally installed system.

The main difference between both alternatives is clear: the option of a local installation tool uses the resources of the company itself, in addition, its management and maintenance are also usually the responsibility of the company. 

Choosing between one or another option can make a big difference when implementing this type of systems in a company. Thus, we review some aspects to take into account that will give us a clearer vision.

Cost of a cloud ERP vs local ERP

The formats of local installation ERP systems usually require a greater investment, both at the time of implementation, contracting the software license itself and acquiring the computer equipment that supports it, as well as its maintenance.

And, if the company does not have a technical department that has the ability to manage the tool, it will be necessary to train one or contract the support externally. On the other hand, the initial costs of cloud ERP solutions are usually much lower, because they only need an initial configuration adapted to the needs of each company, to make access to the program via the Internet. 

Quick integration of an ERP in the cloud vs local ERP

Incorporating a resource planning system in a company is a process that requires careful organization, but an ERP cloud software element comes with the advantage that implementation will be much faster.

As we have already mentioned, the cloud-based solution does not require the company to acquire or configure any type of computer equipment. In fact, the tool can be easily implemented even if the company is organized in multiple divisions, territorial centers or subsidiary companies, with the cost savings that an installation for each element would entail.

ERP cloud vs local ERP software performance

Related to the previous point, another of the advantages presented by the ERP cloud is the scalability factor, that is, the flexibility offered by the providers of these solutions to increase or reduce the capacity of the software, either in the number of users or in the treatment of data.

This is possible thanks to the fact that, compared to the local installation format, the computer systems are optimized so that the operation of the program achieves maximum performance. And so it is that the architectures that support the cloud adapt dynamically to the resources required at any time, being able to cope with any load peak.

Security and trust of an ERP in the cloud vs local ERP

Within the selection criteria of an ERP or another format, it must be taken into account that, in the case of the independent installation, practically all the management “stays at home, and security will depend mainly on ourselves.

Regarding cloud software, it offers greater guarantees that the client company can shape internally. Do not forget that this is one of the competencies of your business, so the provider will be responsible for providing its customers with the most advanced security standards and the necessary updates.

In view of the above, there is no doubt that the choice of an ERP system in the cloud has many advantages that make local software a totally obsolete system.