1. ON-PREMISE ERP
It's not new, it's not flashy and it's a large upfront cost. It's no wonder fewer companies want to stay with on-premise ERP. So why do it? Control. If you own it, you control it. In a nutshell this is a blanket for many other reasons to keep it in house. You can control when & how quickly the equipment is depreciated, upgraded, and replaced. The pitfall to this is responsibility. You're responsible for the upkeep, the maintenance, the backups, what a pain! You might even need to hire someone special to be responsible for all that, like an IT type. More costs, yuck! But it's hard to beat that "warm & fuzzy" of knowing you can control your own equipment.
2. CLOUD BASED ERP
It's new, it's cool, why aren't you "in the cloud” yet? We hear this constantly, but is it right for your company? Some ERP solutions are strictly cloud based, kept on hardware maintained by the ERP developer. We’ve all heard the horror stories about “losing your data forever” but the key is to do your research to eliminate such worries. For startup companies, this is a great introduction into the ERP world. No huge upfront costs and often you get “bells & whistles” included. But should you wish to move off of that solution down the road, be sure you know exactly HOW you can access your data for export. The last big consideration with cloud is history data. Rarely do we convert history transactions from the old ERP to the new ERP due to the cost. It’s too easy to keep the old ERP running should the need arise to access it. Not so with cloud, you’ll need to convert EVERYTHING before you make that last monthly payment. Cloud is still a great alternative; just know this going into it.
3. HOSTED BASED ERP
Could this be the acceptable compromise? In a hosted environment the computer network infrastructure is “in the cloud”, but it isn’t kept by the software developer. The hardware is hosted by an independent company with the sole responsibility of acting as your IT department. Your data is always your data. You still have control over your applications without the worry about the rest of that “network stuff.” This can be an efficient alternative to the other options when your company isn’t quite large enough to warrant full time IT staff. Should you switch ERP in the future, no big deal. The hosting company is agnostic to whatever applications you’re running.
Each option has advantages and pitfalls. It’s great to have each of these options available because each company is different. Do your homework or hire a consultant (like me) to help layout the options clearly for your management team to make informed decisions. Ultimately, ERP software running under any of the options is a step forward for your company.
If you still need clarification on what exactly is ERP software and how it can help your business – watch this brief 1:32 minute video: “What is ERP software”
Complete Programmed Accounting, Inc. (CPA, Inc.), is a team of ERP software and CRM software integration specialists in the central Indiana area with over 20 years of experience supporting SYSPRO ERP, SYSPRO CRM, TRAVERSE ERP, TRAVERSE CRM, Platinum for DOS, and Platinum for Windows, where your support is our service.
CPA, Inc. was founded in 1992 with the following mission statement: “The ability to take advantage of the power of timely information lies in the successful implementation of complete, appropriately configured and properly installed financial and management computer systems.”
Contact Completed Programmed Accounting at: (317) 290-8702. Email: sales@cpa-inc.com. The Complete Programmed Accounting Web site is located at: www.cpa-inc.com
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Another version of this blog was previously posted on January 11, 2015 on CPA, Inc’s BLOG site: Where To Stick Your ERP? Cloud vs Hosted vs On-Premise
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