Choosing your ERP system was only half the battle; you now face an equally important decision...where should your new enterprise resource planning system be deployed? Typically you are left with three options: on-premise, hosted or cloud, plus the possibility of a mix between these options. Yet, this decision is more difficult than one may think, especially when considering which features and pricing fit your business best. Here are some distinct characteristics to consider:
Hosted: In terms of cost, with a hosted structure you deal with mid-range costs upfront with a fee that is paid annually. Your company will not be responsible for infrastructure components and the software is owned by you. You will be responsible for upgrades and you must coordinate with the hosting facility of your choice.
Cloud: When you deploy in the cloud you will have an annual subscription that includes software, infrastructure and required updates. IT maintenance will be reduced and accessibility is virtually anywhere. All in all, your upfront costs are low but you must pay per user on an annual basis.
On-Premise: With on-premise deployment your initial costs are high, yet after these initial costs are managed your only costs are annual maintenance and updates. With on-premise ERP you are in full control of your software, but also must be responsible for maintaining all updates and IT support.
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by Logan Consulting