When an organization chooses a new enterprise resource planning (ERP) system, one of the major decisions it faces is to choose between on-premise deployment or cloud. There are many companies that still believe in the regular on-premise application rather than switching to cloud software. But many service providers and organizations have now shifted to cloud delivery models. To understand why cloud is better than on-premise and is in more use these days, here are a few points:
Cost: Requires no upfront cost. Organizations using cloud computing only have to pay for the resources that they use. No maintenance or upkeep charges are included or associate with cloud. On the other hand, in the case of on-premise, cost is incurred for other sources as well such as hardware, software, servers, architecture etc. Hence, it may include a large expenditure.
Customization: Offers greater stability and receives regular updates from the vendors. Hence, the enterprise can upgrade or switch to infrastructure according to its requirements and needs and can use the same easily to meet the demand. On the other hand, in on-premise deployment, changes in the structure may incur more costs and resources.
Security: The service providers have their own policies and technologies for security, and they take care of the entire data of the client. In case of on premise, large organizations such as banks or government organizations, use security at varied levels. For security of data, they may have to collaborate with a third party or use an external tool, which require extra costs.
Scalability: On-premises require hardware and software maintenance for scaling information and data. It may involve manual labor, which could one of the major factors of consideration and may involve cost. On the other hand, in cloud, as the subscription can any time be changed, it becomes easier to take up this solution at the time of scaling.
Accessibility: Requires internet connection only and can be accessed from anywhere, anytime, either through a web browser or device. Hence, it can be virtually accessed from wireless or with wired connections. With their credentials, the users can access the data without any hardware or software.