When considering the implementation of a new integrated management system (ERP), an important element to consider is how it can be deployed within your organization. The two main types of deployment are on-premise and cloud-based, although a hybrid of both is also possible, depending on the needs and structure of your business.
What are the differences between the two main types of deployment?
An on-premise deployment means that your organization owns the hardware and manages the infrastructure and servers dedicated to your system, which are usually located on site. A cloud-based deployment, which is steadily increasing in demand, involves the solution being stored and hosted by a third-party provider.
Depending on your company’s IT strategy, the best deployment method for your organization may be determined by some of the core principles such as pricing, security, access to data, infrastructure needs and maintenance requirements.
It’s important to understand these differences to make an informed decision as to which is best suited for your company’s IT strategy based on your current operations and budget, while also providing the flexibility that your organization requires in the long term. Here are some factors that should be considered:
|On-premise Deployment||Cloud-based Deployment|
|Pricing||This usually incurs a one-time licensing charge, yearly maintenance fees, and costs associated with the infrastructure and hardware updates. As such, the initial setup requires an upfront investment.||You are essentially “renting” your solution on a monthly basis. This monthly rate usually includes all potential fees, including hardware, maintenance and infrastructure costs.|
|Security||Your organization will be directly in charge of data security, allowing for complete control over the access and storage of your data as well as security levels.||The provider is responsible for security and ensuring that data is stored securely. In recent years, providers have made great efforts to offer cloud platforms that are secure and reliable.|
|Access & Customization||An on-premise deployment has the advantage of giving you full control over data access, customization and scaling, but access will most likely be restricted to the local network of your business.||The cloud offers a lot of flexibility in terms of access and scaling, but unless you opt for private cloud hosting, you may be limited to your provider’s offerings. However, your data and applications will be available from anywhere via the cloud.|
|Maintenance||The maintenance, support and upgrade of the system are under your responsibility. Upgrades have to be scheduled to keep your solution up to date. Typically, annual maintenance fees give you access to new versions, and there are professional service costs for the actual migration.||Updates and hot fixes are scheduled automatically by the provider so that that your solution is always up to date. Maintenance costs are usually included in your base monthly fee.|
|Hardware||Your organization is responsible for the hardware and infrastructure running your solution. Hardware updates will be necessary occasionally to keep up with new technology and to replace obsolete material.||There are no direct hardware purchases required as the applications are accessed via the web. It is important, however, to have a strong Internet connection as this may affect the performance of your applications.|
Considering the impact that the above elements can have on the way you conduct your business, the deployment of your solution is an important aspect to consider when moving forward with a new management system. Depending on your needs and values, one deployment method may be better suited to your organization over the other. A full-service provider such as JOVACO Solutions can guide you in your choice and provide your organization with either one. Also, you should ask potential providers whether it is possible to change deployment type without having to change your system. This will keep your options open for your long-term technology decisions and ensure that your system can support the growth of your organization.
To find out what other elements you should consider before taking the leap,
By JOVACO Solutions,