On-premise ERP systems are installed and configured on your computers. They are also hosted on your servers, giving you complete data security and privacy control. This is why most organizations still prefer self-hosted systems over cloud-based ERP.
No, we’re not saying this. According to the 2022 ERP report by Panorama Consulting, around 65% of companies choose local-hosted ERP over cloud-based systems. The most common reason for on-premise ERP deployment was to strengthen data security and eliminate connectivity challenges.
So, should you also deploy on-premise ERP? Of course, you should if you want to reap these benefits.
On-premise ERP has a high upfront cost but is cost-effective in the long term. They are also easier to customize and offer more control over your data.
That said, let’s look at the five top benefits of an on-premises ERP system.
One of the most significant benefits of on-premise ERP is reduced vendor dependency. It allows you to modify your ERP without going through a vendor.
Whether you’re a mid-sized business with a few hundred computers or an enterprise with multiple locations and thousands of employees, making changes without relying on outside help can be extremely valuable.
- First, you don’t need to wait for someone to make modifications for you.
- Second, these modifications remain in the house, guaranteeing privacy and security.
- Third, you aren’t limited by WiFi speed and can do your job efficiently during internet outages.
Self-hosted ERP systems are highly secure as they are not connected to the internet and, therefore, cannot be hacked remotely. They also provide better data protection than their cloud counterparts, as it requires a physical presence to access the system.
Moreover, you can implement additional to strengthen your ERP’s security further and eliminate the risk of data theft or breach.
The upfront investment in an on-premise solution may be higher than in the cloud. However, when you compare the total cost of ownership of server-based ERP, it is often less than cloud-based systems (as they involve recurring subscription and maintenance fees).
Besides, it makes sense from a management perspective: since you're running everything in-house, there's less overhead involved in controlling and managing all aspects of the operation.
You can control who can access your on-premise ERP application. This enables you to maintain the integrity and privacy of sensitive information while still allowing employees with the necessary permissions to access the data they need for their jobs.
You can authorize users who can view or modify certain portions of your system’s data based on their role in the organization.
On-premise systems are often easier to configure and maintain by IT teams than cloud solutions. And as you continue using the ERP, the need for regular updates will reduce.
Also, as you add new tools to your business, you can customize the server-based ERP to integrate with them. This means your growth isn’t limited to what your vendor can offer!
Overall, on-premise ERP systems provide several benefits for businesses. They can be tailored to the company's specific needs, offer greater control and security, and be more cost-effective in the long run.
Ready to implement a local-hosted ERP system? Our ERP experts in the UAE can help you identify the best deployment model for your company based on your current and future goals.