Choosing the best way to host your ERP software can be a difficult decision as there are many things to consider and your final choice will have a big impact on your experience of using the platform. Things to consider include your industry, your IT resources, your budget and the amount of customisation your system will need.
You must assess these considerations carefully and explore options with your ERP vendor. A good starting point is to list all the business requirements expected of the software. So we have produced this guide to ERP software hosting to help.
The Different Choices for ERP Hosting
Currently, there are 4 main options for hosting your ERP software. They are:
- Cloud ERP (SaaS).
- On-premise.
- Managed Servers.
- Hybrid Solutions.
It is your job to determine which will be best for your needs.
Cloud ERP
This is also known as Subscription-as-a-Service (SaaS) hosting. Essentially, you access a version of the ERP hosted by the vendor via the cloud. Most of the heavy IT work like system upgrades and maintenance are done for you as part of the subscription package. You simply pay your monthly/annual fee based on the ERP modules you need and the number of users you have. It is a relatively easy way to get access to the power of ERP systems.
Pros
- The SaaS provider handles security.
- You get great stability and seamless updates due to the limited customisation.
- It usually takes less time to get up and running.
- Costs can be relatively low and it’s easy to keep on top of spending.
Cons
- Customisation can be limited in this model.
On-premise ERP
This type of ERP deployment requires you to purchase and manage your own server to host the software on-site. It enables limitless customisation to get the system working exactly the way you need it. But it can be a very expensive way to gain access to ERP and often poses challenges with things like mobile access to the server and updating software without damaging customisations and integrations. Nevertheless, it’s a strong option if you have the budget and IT staff and you need complete control over every aspect of the ERP.
Pros
- You have unlimited capacity to customise the solution.
- You get complete control over security to do it your way.
- The implementation process is more in your hands.
Cons
- The upfront investment can be high.
- Data security can be challenging and complex.
- The implementation process can be slow.
- Software updates can cause problems for customisations and integrations.
Managed Servers
This approach is similar to cloud hosting, but you gain access to managed servers dedicated entirely to your operations. Naturally, this makes it more expensive than standard cloud hosting, but it means you get more perks like greater customisation, more resources and access to expert support whenever you need it. If you can afford it, managed hosting is generally superior to standard cloud hosting.
Pros
- All the benefits and expertise of the managed server provider.
- 100% uptime and vast resources as well as seamless updates.
- More customisation potential than standard cloud hosting.
- It costs less than on-premise hosting.
Cons
- Costs are often higher than standard cloud hosting.
- Customisation is less extensive than with on-premise hosting.
Hybrid ERP
This type of solution uses a combination of cloud and on-premise ERP hosting and this can be an attractive proposition to many larger companies as it is a good middle ground between the two. The cloud capabilities can extend the ERP functions to include things like eCommerce, collaboration tools and CRM. It also reduces risk because you always have the core, on-premise servers that you have complete control over.
Moreover, if you have an existing investment in on-premise ERP, you may not have to invest in an entirely new system as you could just build on what you have by adding cloud capabilities.
Pros
- Flexibility to choose where data is stored.
- It can be a cost-effective solution.
- You retain a private infrastructure on-premise.
- You can manage your workload with on-premise computational efficiency.
Cons
- Initial deployment costs can be high.
- Cloud compatibility can be a problem if not implemented correctly.
What are the best ERP platforms for different deployment types?
There are many options for modern ERP solutions. Here are some of the most popular ones for you to consider:
NetSuite (Cloud-based only)
NetSuite is one of the most advanced ERP systems for modern businesses in many industries because it comes with out-of-the-box solutions designed to fit different industries with tools and resources to modify them to fit your unique needs. There are many modules for different business operations and you can integrate with various other software solutions to get what you need. The SaaS structure makes it accessible to businesses of all sizes as you only pay for the modules you use and the number of users you have.
Learn more about NetSuite.
Sage 200 Standard (Cloud-based only)
This is another SaaS ERP system that is very popular with businesses of all sizes. It covers many industries and, like NetSuite, offers a wide range of modules with options for integrations. Again, the cloud-based structure makes it available at an affordable rate for smaller businesses, and it is scalable to grow with you as you take on more employees and expand into new territories.
Learn more about Sage 200 Standard.
Sage 200 Professional (On-premise/Cloud Hosted)
This is a more expensive solution than Sage 200 Standard, aimed at medium-large businesses with the means to host on-premise. It can be accessed via hybrid solutions or managed servers through platforms like Microsoft Azure, so you get flexibility and extensive opportunities for customisation. This ERP is for businesses with very specific needs and the IT resources to handle the higher costs and more complex management needs of an on-premise/hybrid solution.
Learn more about Sage 200 Professional.
Final Thoughts
The options available for ERP hosting enable access for businesses of all sizes in all industries. It’s down to you to assess your needs and ascertain which is the best option for you. An ERP consultant can help you define your needs and match them up to the right ERP platform and hosting type if you need assistance.
Useful ERP Articles
If you’re considering implementing ERP software in your business, you’ll no doubt have a lot of questions. Below is a list of some informative articles that should make things a bit clearer:
- 10 Signs You Might Need ERP Software
- Cloud ERP vs On-Premise ERP Comparison
- ERP Implementation – A Step by Step Guide
- Top Benefits of an ERP System
- The ERP Selection Process Explained
- Building an ERP Implementation Team
- ERP Cost Benefit Analysis
- What is an ERP Consultant?
- Top 10 Tips for a Successful ERP Project
Why choose Eventura as your ERP implementation partner?
Eventura has been providing robust business solutions to countless organisations for over two decades. We are ERP experts and can identify all of your business needs, and deliver a comprehensive ERP solution that works for you.
As Sage 200 Partners and NetSuite Solution Providers, we can help you identify which solution will fit your business needs the best. Our expert team of business analysts, developers, consultants, technicians and support staff can guide you through your entire project, from initial scoping through to implementation and on-going support.
We’re also managed IT service providers meaning we can help you identify your entire IT infrastructure requirements from day one. If you would like to speak to one of our ERP experts to discuss your options or request a free demo, you can request a free call back here.
