Is on-premise ERP becoming off brand?

Why are businesses choosing cloud over in-house ERP management?

“We’re in the Cloud.” It’s a statement heard more and more often, whether it’s from suppliers, customers, or competitors. But what does it actually mean? And should your business be heading in the same direction?

This blog explores the benefits of Cloud ERP versus on-premise ERP and how to decide what’s right for your organisation.

The end for on-premise?

In the days before Cloud prevalence, most businesses operated an on-premise model, so the solution itself isn’t unfamiliar territory. Managing IT infrastructure through a dedicated internal team still has its place but it’s certainly not without challenges.

An on-premise infrastructure requires significant investment in not only money, but also time and expertise. Having the right ‘toolkit’ is one thing, but you need a knowledgeable team who know how to make the most of your investment while also maintaining security and compliance requirements. Expertise like that doesn’t come cheap, and, in a time where money increasingly costs money, businesses are under pressure to deliver not only the best but also the most cost-effective solution.

However, for organisations with strict compliance or data residency requirements, on-premise can provide greater control. Industries with unique or highly customised processes also find value in the flexibility of tailoring their ERP system to specific needs—something that may not be as straightforward in a cloud environment.

What is cloud ERP?

It’s clear that ‘Cloud’ is no longer just a trending term in fact, Cloud has fast become the preference for growing businesses across the globe, with at least 40% looking to make the move and develop strategies in this technological area. But what makes this prospect so attractive?  

Perhaps it’s the reduced total cost of ownership; Cloud providers help make money cost less by providing a stable environment with high availability, monitoring & response.  

Could it be the quality of the technology itself? Cloud providers offer an environment that’s comprised of the latest in tech and complemented by sophisticated reporting tools to ensure that your solution scales with you; at a time when businesses don’t stand still, shouldn’t your solution be the same?  

Maybe it’s the flexibility? The modern world sees us able to handle almost every element of our personal lives from a mobile phone wherever we are in the world and yet our businesses often require us to be at our desks, connected to a PC on the local network. Your business can and should have the same degree of flexibility as your ‘real life’.  

Why choose one over the other?

Choosing between on-premise and cloud ERP isn’t just a matter of preference—it’s about aligning the solution with your business priorities. Here’s a quick guide to help you decide:

• When on-premise makes sense:
  If your business operates in an industry with strict compliance requirements or you need extensive customisation capabilities, on-premise ERP might be the right choice. It offers full control over data and infrastructure, which can be critical for businesses with unique processes or sensitive information. However, be prepared for higher upfront costs and the need for ongoing maintenance.
• When cloud is the better fit:
  Cloud ERP is ideal for businesses seeking scalability, cost efficiency, and modern technology. It works well for organisations that anticipate growth, have remote workforces, or operate in dynamic markets where agility is key. Cloud ERP reduces the burden on internal IT teams and ensures your business stays future-ready without the need for constant upgrades.

Is cloud right for you?

If your current systems are starting to feel outdated or inflexible, it might be time to consider the cloud. Cloud ERP not only frees up capital but also enables businesses to adapt quickly to new challenges and opportunities.

That said, on-premise ERP still has its place—especially for businesses with specific compliance or customisation needs. The key is understanding what works best for your unique requirements.

Conclusion

Cloud ERP is a powerful tool for businesses looking to innovate, scale, and stay competitive. But choosing between cloud and on-premise ERP doesn’t have to be an either-or decision. The right choice depends on your goals, resources, and long-term vision.

If you’re considering your options, we're here to help. Whether it’s evaluating your current systems or planning a move to the cloud, we’ll ensure you’re set up for success, simply choose from our options below.