Before implementing ERP software, manufacturers grapple with the dilemma of whether to install it on-premises or on the cloud. Modern ERP software provides such an option and both have their distinct advantages and disadvantages. It all depends on what you as an organization need to achieve your enterprise goals.

Let us look at both, the pros and cons of cloud and on-premises installation. 

ERP Installation on the Cloud

A modern ERP can be installed on a cloud owned by a cloud service provider that has its own servers, networking, database and data storage facility. The ERP can be installed on a public or a private cloud depending on the requirement.

ERP Installation On-premises

An ERP can be installed on the factory premises with the enterprise owning all of the infrastructure i.e. servers, network, database, computers, and data storage systems along with a dedicated team of IT professionals to manage them.

Selecting either of the two options depends on the nature of your business, allocated budget, scope for future growth, and security requirements. After evaluating the same, manufacturing enterprises can arrive at the right option.