Cloud ERP is the most cutting-edge ERP technology because it can give the same experience as on-premise ERP without the need for a physical location. Employees and other relevant parties, such as supply chain partners, can quickly access an organization’s ERP software and related data, which are maintained centrally via the cloud (the internet).
With an internet connection anywhere in the world, you can monitor and update all other crucial business activities, including financials, inventory, warehouse, and eCommerce, in real-time. An ideal cloud ERP providers manage the rollout of product updates, host and maintain all IT infrastructure, and guarantee data security and system availability. All of this is accomplished by NetSuite, which also ensures that changes remain compatible with existing customizations, connectors, and plugins.
Cloud ERPs like NetSuite also outperform on-premise ERP competitors in terms of speed, availability, and total cost of ownership. Let’s discover more.
On-Premise ERP Technology: A Stale and Ineffective Approach
Prior to the development of cloud technology and the viability of cloud ERP, on-premise ERP solutions were the gold standard for many industries.
On-Premise ERP defined
ERP software is implemented on-site in a business’s physical hardware and servers at particular locations. The ERP is then directly handled by that company’s IT team, and only people who are physically present on the premises where the hardware and servers are housed are able to access them.
Upgrade Obstacles
Upgrades are entirely manual and frequently call for redistributing the system among other machines. Reimplementing the integrations and modifications made to the current system is also a common technique. In addition to being expensive and time-consuming, manual update activities run the risk of human error.
Silos are created, and visibility is restricted by single-tenant architecture.
This is a single-tenant solution, which means that the infrastructure and software are only used once to support a single client. Although an independent database and closed system may seem ideal, they can lead to many negative effects, including version lock, data silos, poor communication, security flaws, and more.
With an on-premise ERP solution, end-to-end visibility with real-time data across a complete corporation is essentially impossible. Since closed systems frequently have compatibility problems, developing middleware or performing manual data import/export operations is necessary to get around these obstacles. In turn, middleware and manual processes can lead to redundancy, input errors, code breakdowns as a result of poor middleware management, and other problems.
Absence of Remote Access
Teams must be physically present onsite at the ERP to make use of the technology, which can have an influence on overall company growth and workforce sourcing efforts. This location requirement might restrict a company’s ability to grow and make it less responsive to various situations where personnel cannot be on-site.
Physical upkeep and storing
Customers using on-premise ERP systems are required to set aside funds and resources for the upkeep and storage of the hardware. In order to accomplish this, it is necessary to upgrade and maintain servers, organize cables (and possibly deal with server spaghetti), hardwired onsite systems, rent dedicated server space, and perform other tasks.
Hosted ERP or Hybrid ERP Solutions
Some ERP companies provide the hybrid or hosted cloud solutions, which fuse cloud computing with an on-premise ERP. Additionally, because these are single-tenant solutions that rely significantly on IT resources, version locking and data synchronization issues may happen during routine maintenance or upgrades. NetSuite’s ERP, in contrast, was created on the cloud, making it a real cloud ERP solution.
|
Business Challenges |
Cloud ERP Solution |
On-Premise ERP Solution |
| Cost of storage and hardware |
None |
Data centers and servers are required in a physical location. |
| Expensive upgrades and IT maintenance |
No |
Requires in-house or on-site technicians. |
| Upgrades that include integrations and customization seamlessly |
Yes |
The process can encounter human errors, and additional customizations are done from scratch. |
| Always accessible with an internet connection anywhere |
Yes |
Cannot be accessed remotely. |
| Fast and affordable implementation |
Yes |
The process is slower and costlier due to onsite requirements. |
| Built-in tools for customizations and upgrades |
Yes |
Requires middleware and separate tools for configurations. |
Why choose True Cloud ERP from NetSuite?
More than 32,000 customers in more than 217 countries and territories rely on NetSuite as their genuine cloud ERP. It has a multi-tenant design and only has one instance of the software, ensuring that every NetSuite customer is using the most recent version. Here are just a few of the many advantages of using NetSuite’s genuine cloud ERP.
Smooth Upgrades
Because all NetSuite customers use the same infrastructure and everything is hosted in the cloud, upgrades with NetSuite are simplified and smooth. NetSuite is solely responsible for managing the twice-yearly upgrades, and each upgrade is accessible to clients in a pre-release form. Before their systems are upgraded, clients can become familiar with changes.
The fact that no NetSuite updates or improvements damage current customizations or integrations is arguably the most significant. Without the requirement for middleware or additional IT maintenance, everything is carried over to the most recent release.
Accessibility anywhere and no upkeep or storage fees
NetSuite gives users mobile access via web browsers and other internet-connected devices because it is a cloud-based platform. Opposed to on-premise ERP users, NetSuite may be accessed from anywhere in the globe with an internet connection, enabling businesses to utilize remote workforces and supporting higher adaptability.
Additionally, because NetSuite manages everything in the cloud and guarantees 99.99% uptime for its clients, no hardware or IT upkeep is necessary.
Real-Time System Visibility
NetSuite gives you complete control and unmatched visibility over your whole business. Through the use of real-time configurable dashboards, simple, straightforward reporting tools, and robust analysis capabilities, customers can swiftly switch between micro and macro views. Instantly delve into specific transactions or quickly see how well your entire supply chain is performing.
Exceptional Scalability
Customers can immediately use the required modules using NetSuite’s modular design because it is a fully integrated solution. Through a single system, it integrates ERP/financials, CRM, eCommerce, inventories, and more. Additionally, NetSuite provides the best pre-configured bundles in the market and customized dashboards with a wide range of viewing possibilities.
Knowing that NetSuite has an existing solution or can rapidly integrate with one that will help your business succeed, you can scale up or down as necessary. (Check out how SAP Business One or Acumatica stack up against NetSuite).
FAQs
How can businesses find the right NetSuite talent for their organization?
Businesses can find the right NetSuite talent for their organization by submitting their job requirements to a reputable platform. Dedicated experts from this platform will then assist in identifying and connecting businesses with the ideal candidate who can effectively drive their NetSuite projects forward.
What are some questions businesses should ask themselves before embarking on an ERP implementation?
Before diving into an ERP implementation, businesses need to consider several crucial questions to pave the way for a successful transition. Firstly, determining the level of independence desired during the implementation process is integral; understanding this preference will guide the selection of an appropriate platform. Secondly, evaluating the necessity for local support, setting a realistic budget, identifying essential features, and reviewing subscription agreements to ascertain data accessibility are pivotal steps in preparation. Considering factors such as tolerance for downtime during switchover periods and the scheduling of after-hours tasks is essential to minimize disruptions during implementation.
Conducting a thorough needs assessment is vital to address any gaps and align organizational procedures and policies with the ERP system’s requirements. Strategic foresight is key – businesses should evaluate whether the chosen ERP design aligns with long-term objectives and supports future growth plans effectively. If a cloud-based ERP system is chosen, conducting meticulous background checks on the cloud vendor and implementation firms, as well as paying attention to user feedback, is imperative for a successful implementation.
In summary, before embarking on an ERP implementation journey, businesses must have clear answers to questions related to independence levels, local support, budget considerations, data accessibility, downtime tolerance, needs assessment, policy adjustments, long-term planning alignment, and rigorous review of cloud-based ERP factors to ensure a smooth and successful transition.
Is there a one-size-fits-all solution when choosing between cloud-based and on-premise ERP systems?
When deciding between cloud-based and on-premise ERP systems, there is no universal solution that fits all scenarios. The choice between these two options is not a straightforward one-size-fits-all decision.Each organization’s requirements and circumstances vary, suggesting that the optimal ERP solution should be tailored to suit the specific goals and operational structure of the business in question.
What are the implications of system upgrades and customization for on-premise ERP versus cloud ERP?
The implications of system upgrades and customization differ between on-premise ERP and cloud ERP solutions. With on-premise ERP software, customizations are integrated into the current system, requiring businesses to re-implement these changes when the provider releases upgrades. This process can be challenging and time-consuming for organizations, as they need to manage, maintain, and plan for hardware updates and license contracts.
In contrast, cloud ERP solutions offer a more convenient approach to system upgrades and customization. Providers like NetSuite continuously upgrade the software in the cloud, ensuring that businesses always have access to the latest features and enhancements without the need for manual intervention. Additionally, cloud ERP systems are just as configurable and customizable as their on-premise counterparts, enabling organizations with complex business models to implement and tailor the software effectively.
While some may argue that on-premise ERP solutions provide more customization options, the long-term costs, technical requirements, and maintenance efforts associated with on-premise systems can outweigh these benefits. By choosing a cloud ERP solution, businesses can streamline the upgrade process, reduce maintenance complexity, and benefit from ongoing improvements and advancements in the software.
Conclusion
Taking Your Business to the next step can only come to reality if you have the right expertise to deliver outstanding solutions
