Cloud ERP series 6: Benefits and Drawbacks of Cloud-Based versus Traditional ERP Systems

There is no doubt traditional, on-premise ERP systems benefit companies in a variety of ways such as a mature system functionality and abilities of greater customization and integration. However, cloud computing has become the fastest growing segment in today’s modern business solutions. In the following section, we list the major benefits and drawbacks of cloud-based ERP versus on-premise ERP systems. This analysis will help the decision maker to make the right decision for their company.

Benefits of Cloud-based ERP as compared to on-premise ERP

  • Lower upfront and operating costs
  • Rapid implementation, updates and upgrades
  • Improved accessibility, mobility and usability
  • Focus on core competencies
  • Easier integration with cloud services
  • Improved system availability and disaster recovery

Drawbacks of cloud-based ERP as compared to on-premise ERP

  • Subscription expenses
  • Security and performance risks
  • Customization and integration limitations
  • Loss of IT competencies

Thus, after years of development, the technology is maturing and features greater improvements. For example, cloud-based ERP has certain features that can increase the level of security. The bottom line is that postponing the necessary action will only result in repressing the growth of your business. Every month that passes is yet another missed opportunity.

At TMC, we listen and understand your specific needs and deliver the best suitable business solution for your company. Learn the full advantages Cloud ERP software can bring to your business. Contact our consultant ask for a free demo and a quick quote.

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