Choosing between a cloud-based ERP and an on-premises ERP is a crucial decision for businesses in Sri Lanka. Each option has its advantages and drawbacks, and understanding these can help organizations make informed choices.
A cloud-based ERP is hosted on a vendor’s server and accessed through the internet.
Lower Upfront Costs: No need for expensive hardware installations.
Scalability: Easily adjust resources based on business growth.
Remote Accessibility: Employees can access the system from anywhere.
Automatic Updates: The vendor manages updates and security patches
Recurring Costs: Subscription-based model can be costly in the long run.
Data Security Concerns: Data is stored on external servers, which may raise security concerns.
Limited Customization: Some cloud solutions may not allow extensive modifications.
An on-premises ERP is installed and maintained on a company’s own servers.
Greater Control: Businesses have full control over their data and system configurations.
Better Customization: Allows extensive modifications to suit specific needs.
No Recurring Fees: A one-time investment with lower long-term costs.
High Initial Costs: Requires investment in infrastructure and IT resources.
Complex Maintenance: IT teams must handle system upgrades and security patches.
Limited Accessibility: Remote access is more challenging compared to cloud solutions.
The choice between cloud and on-premises ERP depends on business size, industry, and budget. SMEs and businesses seeking flexibility may benefit from cloud ERP, while large enterprises with strict data control requirements may prefer on-premises solutions.
For expert guidance on selecting the right ERP solution, contact ERP Solutions Sri Lanka today!
Chart360 is the #1 Accounting Software and ERP in Sri Lanka, is the one of the most simplified and user friendly platform
developed for any kind of business.
