Cloud ERP vs. On-Premise: What’s right for your business?

Both solutions have benefits and attractive features. The right choice depends on your organisation's needs, resources and long-term strategy.
Here, we take a look at the options available for growing businesses to help find a suitable hosting environment.

Understanding the basics

On-premise ERP systems are installed locally on a company's servers and hardware. They offer full control over data, customisation, and security. However, this option typically requires significant upfront investments in infrastructure and IT resources. Although you’ll have total control over your environment, you’ll also need to factor in on-going maintenance and security costs within your budget.

On the other hand, a cloud-hosted ERP solution is typically hosted on a shared server through providers such as AWS, Google Cloud or Azure. Information is accessed and updated via an internet connection. Cloud solutions will usually follow a subscription-based model and may offer lower upfront costs. Another attractive benefit of this model is that vendors will manage all updates, maintenance and security on behalf of clients.

The case for Cloud ERP

Cloud ERP is gaining popularity, especially among small and mid-sized businesses, due to its flexibility and scalability. In fact, research shows that 78% of business leaders state they've adopted cloud in most or all areas of their organisation. Cloud ERP allows teams to access data from anywhere, making it ideal for remote work environments and businesses with multiple locations working across different time zones.

Key benefits of cloud ERP include:

• Lower upfront costs: No need to purchase hardware or manage servers
• Faster deployment: Cloud ERP systems can be up and running in weeks, not months
• Automatic updates: Your software stays current with minimal disruption
• Scalability: Add users or features as your business grows
• Improved accessibility: Access real-time data anytime, anywhere

Why on-premise still works

Despite the shift toward the cloud, an on-premise solution is still an appealing option for organisations deploying a new ERP. Depending on how your business processes data — or the nature of information your business collects — an on-premises solution, behind an internally managed firewall will help companies working within highly regulated industries.

Advantages of on-premise ERP:

• Greater control: Your IT team has full access and control over the system and data management
• Customisation: It is easier to tailor software to specific business needs
• Data security: Some businesses prefer to keep sensitive data in-house

Factors to consider

When deciding between cloud or an on-premise ERP, it's essential to consider the following:

• Budget: Do you have the capital for upfront investment, or would you prefer monthly subscription costs?
• IT resources: Do you have an in-house team to manage and maintain a system?
• Scalability: How fast is your business growing, and can your ERP system grow with it?
• Compliance: Are there industry regulations affecting where and how your data is stored?
• Accessibility: Will your team need remote or mobile access to the system?

What’s right for you?

At SEIDOR, we know there's no one-size-fits-all answer to the ERP hosting debate. Whether it’s a cloud-based or on-premise solution, the right ERP system for your business is the one that aligns with your unique goals, operational requirements, and industry-specific challenges.

That's why we go beyond just offering solutions — we start by understanding you. Our team of ERP experts works closely with growing businesses to evaluate current infrastructure, pain points, growth plans, and long-term needs.

We help you to navigate the complexities of ERP selection and hosting options with a tailored approach that ensures your chosen system will support your immediate needs and long-term vision.

Ready to find out which ERP hosting platform is right for your business? Get in touch with our team today. Call us on UK: +44 (0)1932 212 777 or IE: +353(0) 1 697 1818.