While SAP Business One has become a household term for the SMEs to run operations on a daily basis, there are entrepreneurs who are still unsure whether they should access the ERP solution on Cloud or implement it on their premise. Experts would say that both has the respective pros and cons and the decision is totally based on the client’s requirement and budget. However, the inputs should be analysed from the users’ point of view for easy understanding.
As you already know, SAP Business One is a systematic and strategized ERP solution that SMEs across the world are using. But, when it comes to the stringent budget, people go for the Cloud. On the contrary, entrepreneurs looking to technically empower his organization opt for on-premises solutions.
Let’s find out which of the deployment models make the best choice for your business.
The Best of SAP Business One on Cloud
Before we delve deep into the benefits of Cloud deployment, you must know that deployment on Cloud gives direct access to the ERP application provider company and henceforth all your data will be centrally managed by the solution vendor. In fact, you and your team can access it anytime anywhere using a web browser.
Here’s why entrepreneurs love it.
Cloud Gets You Enhanced and Hassle-Free ROI
While the on-Cloud applications demand a huge investment initially, it provides you a long-term benefit by providing higher returns, increased profit margin and growth. Also, they ensure minimum disruption of your business operations.
The biggest advantage of the Cloud is you do not need to do any hardware management. Also, there will be no requirement of third-party Server platform or Firewall. With Cloud, you can opt for a pay-as-you-go module, thus can save big deal on finances, resources and the requirement for additional hardware.
Get help with automatic updates
SAP B1 On-Demand solution is already customised to a standard level. With the Cloud system, you can use it hassle free. On-demand deployment facilitates auto update whenever required while keeping the fundamental attributes of SAP Business One intact. In fact, as a user you no longer need to put any manual effort for upgrades in the system. No doubt, it makes Cloud solution far more preferable than the on-premise solution.
If you are a fast growing SME, opt for the Cloud model over on-premise deployment, mostly due to its super scalability. SAP Business One on Cloud is highly scalable as far as the hardware resources are concerned. Thus, a user can add more RAM, opt for better connectivity and speed. Therefore, one can find it easy to add more RAM, add better internet connectivity and speed. Besides, increasing the storage size, adding more processing power, and achieving efficiency on a day-to-day basis are also a key reason for the popularity of Cloud.
On Cloud your data is at secured place. Because the platform is encrypted and hence there’s zero chance of missing data.
And of the course the budget!
Cloud deployment offers pay-as-you-go model, which is definitely an economic choice for the SMEs who cannot afford a fixed subscription plan on a monthly basis. In fact, users can access all significant features of the SAP Business One ERP system on-demand.
How is On-premise Deployment
Unlike Cloud deployment, on-premise deployment means all your SAP hardware will be hosted and managed within your server. A user can manage everything right from the HANA database, applications, the data centers, Operating Systems, middleware, servers, networking, and virtualization.
Though an on-premise set up involves a lot of time, money, and most importantly so much of effort, it’s true that bigger enterprises will always opt for a on-premise deployment, only to run the operations smoothly.
Here’s where on-premise deployment makes a wise choice.
Strict Data Compliance
For companies with strict data security compliance, on-premises deployment is the best thing ever. By doing this , they can prevent syncing their critical business data with any third party system, which is otherwise not possible in case of Cloud deployment. Information like product pricing, supplier and vendor data, period discounts and company policies are critical to any business. And, to keep these secured on-premise is the recommended solution.
On-premise model supports customised business flows more seamlessly if compared with the Cloud solutions. Though Cloud solutions are on-demand, it’ true that they come with restrictions. On the contrary there’s no such restrictions for on-premise system regarding customizations. Moreover, if you have unique business scenario, tailoring your ERP becomes a business imperative. And, without on-premises deployment such kind of comprehensive customization is not possible.
Many enterprises already have a well-maintained on-premise ERP solution. If they access Cloud, their existing infrastructure becomes redundant. While with a simple upgradation of the existing system can help them access SAP Business one, there’s no point in abandoning it simply to access the ERP solution via Cloud. Moreover, an upgradation will result in generating a good ROI.
The Takeaway Point
Precisely, both cloud and on-premise deployment have their own set of pros and cons. However, it depends on your business needs. Opting for a flexible solution is always a great idea as you can use it as per your business needs and budget. Remember, a right deployment module will revamp your business structure and facilitate streamlined operations.