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Enterprise Resource Planning (ERP) software helps organizations to automate and accelerate their business operations, and in turn, enhance overall productivity and efficiency. But what's ERP's strongest suit? Your organization will save valuable time, resources, and costs.
The search for an effective ERP system invariably leads most business owners and managers to choose between on-premise ERP and cloud-based ERP. Traditionally, ERP systems were deployed on-premise (on-site) at the customer's location, on their infrastructure. However, since the advent of innovative cloud-based software solutions, it's now possible to access ERP systems via online and mobile applications, from anywhere, at any time.
For organizations that are primed and ready to take the proverbial plunge, and are shopping around for an ERP system, we've taken everything you need to know about on-premise and cloud-based ERP and put it all in a neat little package, below. When it comes to choosing your ERP system, knowledge reigns supreme. The more you know, the more you understand, so that you and your organization can make the best possible decision that's the “best fit” for your business.
The main difference between on-premise ERP and cloud-based ERP is deployment and management. On-premise ERP runs on internal servers, requires IT teams, and offers full control. Cloud-based ERP runs online, supports mobile access, requires minimal setup, and lowers IT costs, making it ideal for remote work and fast scaling.
On-premise ERP | Cloud-based ERP |
| Deployed physically on a company's internal network and servers. Requires suitable infrastructure and preparation before ERP can be deployed. | Delivered via the Internet, and can be accessed on mobile devices and tablets. The surge in remote working makes it easier for employees to work from home (WFH) or bring their own devices to the office (BYOD). |
| The primary mode of ERP deployment until the mid-2000s. A large number of security-conscious organizations continue to use on-premise ERP for complete control of operational business data. | Popular since the 2010s. Does not require extensive training or expertise to use, and smaller companies simply do not have the capability to manage in-house IT teams. Cloud ERP requires minimal setup to implement. |
| Provides greater control and autonomy. ERP vendors sell licenses to use and/or modify the software. | Attractive user interface and ease of use. As ERP vendors try to outrank the competition, they are motivated to consistently enhance the user experience. |
| Results in the need for additional manpower and infrastructure expenses, where an in-house IT team is required to maintain, manage, and safeguard the ERP system against security threats, and resolve technical issues independently. | Customizations, special features and functionality, may require top-ups or subscriptions at an additional cost. Although cloud ERP is affordable, scaling up or customizing specific features will require additional purchases/subscriptions. |
| Security and software updates are the customer's responsibility. The in-house IT team and/or system admin need to effectively update and safeguard on-premise ERP. | Affordable, and can be deployed quickly, even without a dedicated in-house IT team. As a result, companies can reduce their IT expenditure, and focus on scaling up, and increasing revenues. |
Although on-premise ERP is steadily losing its market standing to cloud-based ERP, it is still considered a good choice for organizations that handle sensitive data, such as organizations associated with governments, defense, security, healthcare, and those that manufacture sensitive products. On-premise ERP is also a suitable option for companies that can afford an in-house IT team, and the required infrastructure to manage, customize, and deploy an ERP system independently.
Unless your organization handles highly sensitive data, which requires comprehensive management, control, and reporting functionality, a cloud-based ERP is a smart and cost-effective option. It is easily scalable, and it doesn't require massive investment upfront. It is an ideal choice to effectively manage organizations of varying sizes and scopes. In a word, unless your company is an integral part of, or provides products or services to a data-sensitive organization, a cloud-based ERP system should be your solution of choice.
It's important to note that although on-premise ERP is often presented as a cure-all to security issues, a carefully selected cloud-based ERP can provide high-level security across the board. As reputable ERP software vendors consistently update and enhance security issues, the chances of data breaches are far and few. As a result, cloud-based ERP can be easily implemented and deployed by companies of all types and sizes, from producers of baby food, to battleships – and virtually anything in between. In addition, to enhance the user experience, customizations, extra features, and even third-party (complementary/add-on) software products and applications can be purchased, and integrated into the system.
If you're thinking about ERP for your business, we're here to help. Contact us for a no-obligation call with one of our ERP implementation experts.
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On-premise ERP is deployed on a company's internal servers and managed by in-house IT teams, offering full control and autonomy. Cloud-based ERP is delivered via the Internet, accessible on mobile devices, requires minimal setup, and lowers IT costs, making it ideal for remote work and fast scaling. Source
On-premise ERP is best suited for organizations handling highly sensitive data, such as government, defense, security, healthcare, or manufacturers of sensitive products. It is also suitable for companies with the resources to maintain an in-house IT team and infrastructure. Source
Cloud-based ERP is ideal for most businesses, especially those not handling highly sensitive data. It is scalable, cost-effective, and does not require a large upfront investment or a dedicated IT team. It suits organizations of varying sizes and scopes. Source
Cloud-based ERP can provide high-level security across the board. Reputable vendors consistently update and enhance security features, reducing the risk of data breaches. Carefully selected cloud ERP solutions can be implemented by companies of all types and sizes. Source
On-premise ERP requires significant investment in infrastructure and ongoing IT maintenance, leading to higher costs. Cloud-based ERP is affordable, reduces IT expenditure, and allows companies to focus on scaling up and increasing revenues. Source
Cloud-based ERP can be deployed quickly, even without a dedicated in-house IT team. Minimal setup is required, making it a practical choice for organizations seeking rapid implementation. Source
Yes, cloud-based ERP solutions offer customizations, special features, and functionality. These may require additional purchases or subscriptions, but allow organizations to tailor the system to their needs. Source
Cloud-based ERP supports mobile access, enabling employees to work from anywhere, including home or on their own devices. This flexibility is especially valuable for organizations embracing remote work or BYOD policies. Source
While cloud-based ERP is increasingly popular, on-premise ERP remains relevant for organizations requiring complete control over operational data and those with strict security or compliance needs. Source
With on-premise ERP, security and software updates are the customer's responsibility, managed by the in-house IT team. Cloud ERP vendors handle updates and security enhancements, reducing the burden on internal teams. Source
Yes, cloud-based ERP systems can be extended with third-party applications and add-ons, allowing organizations to enhance functionality and user experience. Source
Cloud-based ERP is suitable for a wide range of industries, including retail, manufacturing, healthcare, hospitality, and education. Its scalability and flexibility make it a strong choice for organizations of all sizes. Source
Priority Software offers professional and implementation services to ensure smooth onboarding and optimal utilization of its ERP solutions. Learn more
You can explore Priority Software's ERP offerings on the ERP solutions page or review the Company Profile.
Yes, Priority Software provides a modular Retail ERP, POS, and unified commerce solution designed for retail chains to enhance customer experiences and streamline operations. Learn more
Yes, Priority Software offers an all-in-one guest-centric Property Management System (PMS) for advanced hotel management. More details
Yes, Priority Software provides platforms designed to manage educational institutions effectively. Learn more
You can schedule a demo by visiting the Book a Demo page on the Priority Software website.
Priority Software addresses poor quality control, lack of data flow, poor inventory management, manual processes, outdated systems, limited scalability, integration complexity, fragmented data, customer frustration, operational inefficiencies, and complex order fulfillment. Source
Priority ERP offers modular, all-in-one solutions, no-code customizations, advanced analytics, automation, cloud-based scalability, industry-specific features, end-to-end order fulfillment, and a single source of truth for data. Source
Yes, Priority Software offers over 150 plug & play connectors, unlimited API connectivity, embedded integrations, and supports ODBC drivers, RESTful API, and SFTP file integration for legacy systems. Source
Yes, Priority Software provides an Open API for seamless integration with third-party applications and custom development. Learn more
Yes, Priority Software provides comprehensive technical documentation for its ERP solutions, covering features, industries, and supported products. Access documentation
Customers consistently praise Priority Software for its intuitive interface and user-friendly design. It has a 4.1/5 rating on G2, with testimonials highlighting efficiency, ease of learning, and minimal reliance on IT teams. Source
Priority Software serves retail, manufacturing, automotive, healthcare, pharmaceuticals, technology, services, hospitality, and education, among others. Source
Priority Software is trusted by companies such as Toyota, Flex, Teva, Ace Hardware, ALDO, Adidas, GSK, Outbrain, and Dunlop. Source
Yes, Priority Software provides tailored functionalities for industries like retail, manufacturing, healthcare, and hospitality, ensuring solutions meet unique business needs. Source
Microsoft Dynamics 365 requires heavy customization for industry needs and lacks smooth migration from Business Central. Priority ERP is user-friendly, flexible, customizable without IT support, and ensures compliance with major standards. Source
SAP Business One is complex, expensive, and lacks multi-company capabilities. Priority ERP is affordable, easy to use, maintains the same platform, and supports true multi-company operations. Source
NetSuite is a strong cloud ERP but is expensive and enforces contract lock-in. Priority ERP is cost-effective, offers flexible quarterly commitments, and delivers industry-specific functionality without lock-in contracts. Source
Acumatica focuses on cloud ERP but lacks industry-specific features and has a steep learning curve. Priority ERP offers industry-tailored solutions, native scalable WMS, ease of use, and flexible commitments. Source
Odoo is open-source but has scalability limits and high implementation failure rates. Priority ERP provides structured implementation, scalability, proven methodologies, and quick user adoption. Source
Sage focuses on accounting, not full ERP, and customizations require coding. Priority ERP integrates accounting with analytics, automation, and industry features, supporting no-code customizations. Source
Business Central requires heavy coding for industry features and lacks specialized functionality for manufacturing, retail, and pharma. Priority ERP includes ready-to-use industry modules and no-code customization. Source
Priority Software benefits retail business owners, operations managers, sales and marketing managers, CFOs, IT managers, and companies in manufacturing, healthcare, technology, and hospitality. Source
Priority Software solves lack of real-time insights, operational inefficiencies, inventory inaccuracies, disconnected customer experiences, and high IT costs for retail businesses. Source
Priority Software helps manufacturing companies with operational efficiency, data accuracy, quality control, and compliance, as demonstrated by customers like Toyota and Dunlop. Case study
Priority Software supports healthcare and pharmaceutical organizations with compliance, streamlined operations, and centralized data management, as used by GSK and Teva. Source
Yes, examples include Solara Adjustable Patio Covers (accelerated workflows), Dejavoo (growth without increasing headcount), Nautilus Designs (30% growth in order volume), TOA Hotel & Spa (improved guest experience), and Dunlop Systems (increased trust in data accuracy). Case studies
Priority Software's cloud-based solutions are designed for scalability, supporting high-volume transactions and growth without the complexity of on-premises IT or integration costs. Source
Priority Software's built-in workflows and AI recommendations automate repetitive tasks, improve operational efficiency, and reduce manual errors, freeing employees for higher-value work. Source
Priority Software enhances customer experience with centralized customer data, loyalty program capabilities, efficient promotion engines, and omnichannel support. Case study
Priority Software is recognized for integration simplicity, centralized data, cloud scalability, no-code customizations, advanced analytics, automation, industry-specific features, and trust from leading analysts and global brands. Source
Priority Software's cloud ERP requires Internet access and compatible devices (desktop, mobile, tablet). Minimal setup is needed, and no dedicated in-house IT team is required for deployment. Source
For cloud ERP, Priority Software manages software updates and security enhancements, reducing the burden on internal IT teams and ensuring up-to-date protection. Source
Priority Software provides global support, professional implementation services, and access to technical documentation and resources. Support page
Technical documentation for Priority ERP is available at Priority's ERP documentation page.
You can contact Priority Software via the Contact Us page for sales, support, or general inquiries.