Modern ERP systems can be deployed in a different way: on premise, in a public or private cloud, or in various hybrid scenarios that combine environments.
- On-Premise ERP – this is the traditional model where the business software system is installed and run on the data center within the premises of the organization. The key leverage of On-Premise ERP systems is the control (including the security of its data) it provides to the organization, but this control also comes with the responsibility of managing and maintaining the system, which can be resource-intensive.
- Cloud-based ERP – also called SaaS ERP (since it is delivered over the Internet as a service your company subscribe to) is hosted in an offsite server (in the cloud) and is typically managed by your hosting vendor. With Cloud ERP deployment, most heavy IT work such as upgrading, maintaining and archiving is done. This is what turns the Cloud ERP better choice today – due to the lower upfront costs, greater scalability and easier integration.
- Hybrid ERP – a mixture of both, often with an on-premises ERP at headquarters and cloud-based ERP systems at subsidiaries.