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Decoding the ERP Dilemma: Cloud or On-Premise

June 29, 2023
By-
Luke Medida

Enterprise resource planning (ERP) software is a critical tool for businesses of all sizes. It can help you to streamline your operations, improve your efficiency, and make better decisions. However with so many different ERP solutions on the market, it can be tough to know which one is right for your business.


Cloud-based ERP

Cloud-based ERP is hosted on a remote server and accessed over the internet. This means that you don't need to worry about maintaining your own hardware or software. Cloud-based ERP is also typically more scalable than on-premises ERP, so it's a good option for businesses that are growing rapidly.

However, cloud-based ERP can be more expensive than on-premises ERP, and you may have less control over your data. Additionally, if your internet connection is unreliable, you may experience downtime.


On-premise ERP

On-premise ERP is installed on your own servers and is not accessed over the Internet. This means that you have more control over your data and security. On-premises ERP is also typically less expensive than cloud-based ERP.

However, on-premises ERP can be more difficult to maintain, and you'll need to have the necessary IT infrastructure in place. Additionally, if your hardware fails, you may experience downtime.


Which is right for your business?

The best choice for your business will depend on your specific needs and requirements. If you're looking for a scalable and reliable solution, cloud-based ERP may be a good option. If you're looking for a more cost-effective solution with more control over your data, on-premises ERP may be a better choice.

 

Kensium can help you choose the right ERP solution for your business.

We have a team of experienced and certified ERP consultants who can help you assess your needs and recommend the best solution for your business. We can also help you implement and manage your ERP system, so you can get the most out of your investment.

Here are the factors to consider when choosing between cloud and on-premises ERP:

  • Your budget: Cloud ERP is typically more expensive than on-premises ERP, but the costs can vary depending on the specific solution you choose.
  • Your IT infrastructure: If you don't have the necessary IT infrastructure in place, cloud ERP may be a better option for you.
  • Your data security needs: If you have sensitive data that needs to be protected, on-premises ERP may be a better choice.
  • Your flexibility needs: If you need a lot of flexibility in terms of how you use your ERP system, cloud ERP may be a better option.

Contact us today to learn more about how we can help you choose the right ERP solution for your business.

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Written by
Luke Medida
Luke Medida is a Senior Manager of Client Success at Kensium, with close to two decades of experience in IT services. He excels in building strong client relationships, program management and helping clients increase their revenues. In his role, Luke works with customers across multiple domains helping them with their digital transformation needs, translating their business goals into IT roadmaps.
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Decoding the ERP Dilemma: Cloud or On-Premise

ERP
Reading Time:
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Published on:
August 22, 2025
Updated on:
August 22, 2025
Our Editorial Team
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Enterprise resource planning (ERP) software is a critical tool for businesses of all sizes. It can help you to streamline your operations, improve your efficiency, and make better decisions. However with so many different ERP solutions on the market, it can be tough to know which one is right for your business.


Cloud-based ERP

Cloud-based ERP is hosted on a remote server and accessed over the internet. This means that you don't need to worry about maintaining your own hardware or software. Cloud-based ERP is also typically more scalable than on-premises ERP, so it's a good option for businesses that are growing rapidly.

However, cloud-based ERP can be more expensive than on-premises ERP, and you may have less control over your data. Additionally, if your internet connection is unreliable, you may experience downtime.


On-premise ERP

On-premise ERP is installed on your own servers and is not accessed over the Internet. This means that you have more control over your data and security. On-premises ERP is also typically less expensive than cloud-based ERP.

However, on-premises ERP can be more difficult to maintain, and you'll need to have the necessary IT infrastructure in place. Additionally, if your hardware fails, you may experience downtime.


Which is right for your business?

The best choice for your business will depend on your specific needs and requirements. If you're looking for a scalable and reliable solution, cloud-based ERP may be a good option. If you're looking for a more cost-effective solution with more control over your data, on-premises ERP may be a better choice.

 

Kensium can help you choose the right ERP solution for your business.

We have a team of experienced and certified ERP consultants who can help you assess your needs and recommend the best solution for your business. We can also help you implement and manage your ERP system, so you can get the most out of your investment.

Here are the factors to consider when choosing between cloud and on-premises ERP:

  • Your budget: Cloud ERP is typically more expensive than on-premises ERP, but the costs can vary depending on the specific solution you choose.
  • Your IT infrastructure: If you don't have the necessary IT infrastructure in place, cloud ERP may be a better option for you.
  • Your data security needs: If you have sensitive data that needs to be protected, on-premises ERP may be a better choice.
  • Your flexibility needs: If you need a lot of flexibility in terms of how you use your ERP system, cloud ERP may be a better option.

Contact us today to learn more about how we can help you choose the right ERP solution for your business.

Our Editorial Team
No items found.

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