If you own a business in Qatar, you would have realized that a number of processes have to be managed to successfully operate your organization. The processes range from inventory management and accounting to customer relationship and human resources management. ERP software helps you to integrate the various functions and streamline the processes and make information accessible to everyone concerned in the different functional departments. However, it is important that you work closely with the best ERP solutions provider in Qatar in order to derive the maximum benefits.
Now, one of the most crucial factors you need to take into account when deciding to implement a new ERP system for your organization is whether to opt for on-premises or cloud system. The popularity of cloud ERP systems is on the rise though many companies continue to use the traditional on-premises systems. Understanding the basic differences between on-premises and cloud-based ERP systems and the pros and cons of each can help you make an informed decision as to which one system best meets the needs of your organization.
On-premises Vs. Cloud-based ERP System
The primary difference between the two systems is the manner in which the software is implemented and accessed. In the case of on-premises ERP systems, the software is installed on servers and computers owned or leased by the company. In contrast, the vendor owns or leases the servers in the case of cloud-based systems. You can access the servers through a browser. Typically, cloud-based systems are SaaS products and infrastructure and software form part of the services provided. For more information about these systems, you can consult with the top ERP Solutions provider in Qatar.
Some of the differences between the two systems are as follows:
Cost and time
The upfront investment required when implementing an on-premises ERP solution is higher as you need to purchase the required software and hardware systems. You also need to have an in-house IT team in place to manage the system. Establishing the infrastructure and deployment of the system is a time-consuming process as well.
If you opt for a cloud-based ERP system, you can start using it almost immediately as the software would have already been deployed on the cloud. You just have to pay a periodic subscription fee according to the usage. A major portion of the hardware costs can also be avoided. This means a cloud ERP solution is more cost-effective than the on-premises system.
While capital expenditure is required for setting up an on-premises ERP system, the subscription fee that you pay for the cloud system can be classified as operating expenditure.
Mobile Access and Customization
On-premises ERP systems allow you to customize the software to meet your specific requirements. However, the customization process is a time-consuming affair. Further, you have to make the necessary changes as and when the vendor updates or enhances the software. Moreover, the system may not provide data in real-time to stakeholders and employees.
When implementing a cloud-based ERP system, the service provider will customize the solution according to your specific requirements. Your system gets updated automatically with security patches and the latest software versions. In addition to this, the cloud ERP system enables on-the-go access through native mobile applications.
Ownership and Data Security
You are solely responsible for ensuring security and control of data if you have implemented an on-premises ERP system. Often, these systems experience malicious attacks because of the lack of supervision and implementation of the right data security protocols.
Cloud ERP systems ensure data security by opting for encryption methods. Besides, a reliable ERP solutions provider in Qatar will automatically update your systems to ensure that you are operating in a secure environment.
Integration and Scalability
It is important to pay a great deal of attention and invest time for the integration of new systems with the existing ones when implementing on-premises ERP solutions. If not done properly, you can experience a lot of problems at a later date.
When implementing a cloud-based ERP solution, the service provider takes care of the integration process and ensures a seamless experience for all concerned.
As far as scalability is concerned, cloud ERP solutions offer a greater level of flexibility when compared to on-site ERP solutions as additional hardware may have to be installed in the latter case.
Training and Support
On-premises ERP systems call for extensive training to be provided to the employees. Technical support may also be required for extended periods of time.
For cloud-based ERP systems, ample support is usually rendered by the service provider for sorting out technical problems that may occur and for managing IT functions with least downtime.
As such, the advantages of adopting a cloud ERP solution for your business can be summarized as follows:
- Improved cash flow: It replaces a significant amount of hardware and deployment costs with a subscription-based pricing model.
- Lower operating costs: It has been observed that cloud ERP solutions cut down operating costs by as much as 70 percent.
- Simple integration and quick start: The cloud-based ERP solution enables seamless integration with the existing system. Furthermore, the intuitive interfaces that come with the solution enable the users to start straightaway.
- Greater flexibility: You can easily and quickly scale up/down your capacity as the business grows/demand fluctuates. You need to pay only for the services that are provided.
- Automatic updates: The cloud services provider keeps track of software updates ensuring that you have access to the latest versions of the software and security features.
Zerone HiTech, Qatar
As the leading ERP solutions provider in Qatar, Zerone HiTech can help you implement or migrate to a cloud-based setup. The top systems integration company makes available IT products and solutions for businesses of all sizes. Moreover, Zerone is a Microsoft Gold Partner in Qatar and has extensive experience and expertise in implementing Microsoft’s cloud-based solutions for small, medium and large enterprises. Apart from the fact that Zerone HiTech is the first-chosen Microsoft Preferred Cloud Partner.