Sage 200 is a feature-rich Enterprise Resource Planning (ERP) system designed to help organisations meet their financial and commercial needs. It is aimed at SMEs, enabling improved management of things like finances, commerce and stock so that they can grow and thrive. Sage 200 is designed for up to 200 users and 9 million transactions, so it has the processing power necessary for most organisations of this size.
There are actually two versions of Sage 200, one of which is entirely cloud-based. The other is an on-premise solution that is cloud-connected, and it can be hosted on third-party managed servers or via a cloud-hosted platform like Azure.
Let’s take a closer look at the versions of Sage 200 and how they can be hosted.
Sage 200 Standard
This version of the software is the one that is entirely cloud-based. It is designed to accommodate the standard needs of a business, meaning it will be a good fit for most businesses that do not have very industry-specific or unique requirements.
This cloud-based version of Sage 200 has become a popular option. Everything is hosted remotely in the cloud and you access it by logging in on your desktop or via an app installed on your device. Access is available from anywhere at any time and the hosting is handled by Sage themselves.
With Sage 200 Standard, there is no option to use hosted servers or install them as an on-premise solution. You can learn more about Sage 200 Standard in our informative article Sage 200 Standard – Out-the-Box ERP.
Sage 200 Professional
Sage 200 Professional is a comprehensive ERP system that is installed locally on your premises and is cloud-connected. If you don’t want it installed locally on your own servers, you can choose to have it hosted on third-party managed servers or it can be hosted in the cloud on popular cloud computing platforms like Microsoft Azure.
If you would like to learn more about this, please feel free to read the article Sage 200 on Microsoft Azure – A Full Cloud Solution.
The main benefit of using the Professional version is that it is highly customisable using an array of additional modules. There are modules available that are optimised for a range of industry-specific requirements, covering industries like construction, manufacturing and warehousing, to name a few. It also facilitates multi-currency operations, unlike Sage 200 Standard, and features 20 analysis codes for data reporting, compared to the Standard edition’s 5.
What this all amounts to is that Sage 200 Professional is more powerful in terms of customisation, international expansion and advanced reporting capabilities. For a more in-depth look at Sage 200 Professional, please read our Quick Guide.
Choosing the Right Version of Sage 200
With regards to the question of which Sage 200 version you should choose, the answer is based on your needs. Many SMEs will have all their needs met by Sage 200 Standard, which will help with core financials and commercials, streamlining processes and improving your accuracy and reporting capabilities. It is only organisations that need more in-depth capabilities that might be better suited to Sage 200 Professional.
You will need to analyse your business needs in detail to make the choice. You will also need to consider the advantages and disadvantages of cloud-based, on-premise and hosted versions of ERP software.
What are the advantages and disadvantages of cloud-based ERP?
Pros
One of the main benefits of having a cloud-based ERP is that the upfront costs are low. This makes it far more accessible for smaller companies that simply don’t have the budget for on-site implementation.
In addition to this, cloud-based ERP comes with the guarantee of comprehensive, powerful security measures that protect your data. If you are considering a vendor, you can arrange an independent audit of their security to help assess the quality of the measures they have in place.
You will also enjoy the benefit of seamless mobile accessibility. And your systems will be provided with updates that are optimised to never interfere with your operations or cause integrations to stop working.
Cons
One disadvantage to cloud ERP, however, is that the opportunities for customisation can be less abundant depending on which system you choose. You won’t have the ability to modify your systems right down to the fine details, but the out-of-the-box capabilities are usually more than sufficient for many companies needs. This is because the specific needs of different industries have generally been incorporated into the software, with additional modules available for certain needs.
Another disadvantage relates to mobile accessibility. While it is an extremely useful feature, it does increase the risk of security breaches as mobile devices can be hacked. This is why you should be particularly mindful of cybersecurity. Saying this, most of today’s modern ERP vendors have robust security measures in please to reduce this risk and modern cloud-based ERP is considered extremely secure compared with those that came before them.
What are the advantages and disadvantages of on-premise ERP?
Pros
Broadly speaking, there is an abundance of choice with regard to customisation when you opt for an on-premise ERP solution. The software can be tweaked and modified to cater to your specific requirements, which can be an important feature for many businesses. If you operate in a niche industry and have very precise processes, the out-of-the-box configurations of Sage 200 Standard may not be enough for you.
Beyond this, on-premise ERP puts more of the control in your hands. You choose how the security of your data is handled. Though this means it is in your hands to take responsibility for cybersecurity measures, if you are confident in this area then you can seize control.
You can also control the choice of which cloud platforms or third-party hosts you use for the cloud/host-connected portion of the software, so you can be more confident that this will meet your standards and requirements.
Cons
One of the obvious cons of on-premise ERP is the substantial upfront cost associated with purchasing the software and the hardware needed to run it. You will also have ongoing costs like security, software and hardware maintenance or any third-party hosting platforms you might use.
Customisation also costs money to carry out, and when updates and/or upgrades are required, it may cause issues with your integrations and customisations. Essentially, there are many more complications in on-premise ERP platforms, and these cost money to handle.
Another limitation of on-premise deployments is that you don’t necessarily have a ready-made mobile solution. It may be necessary to work with another third party to enable mobile devices to communicate with on-premise systems, which can be an additional hassle you might prefer to be without.
For a more detailed comparison, please read our article Cloud ERP vs On-Premise ERP.
Things to Consider When Comparing Sage 200 Standard with Sage 200 Professional
If you are struggling to make the choice between whether the cloud-based or on-premise edition is right for you, the following key considerations might help focus your thinking:
- Total cost of ownership: you need to balance associated costs with the level of power and customisation you get.
- Upgrades: these are an inevitable part of both modern software and business growth. How easy will it be to accommodate software updates and will your system be sufficiently scalable for your needs?
- Performance: on-premise systems are capable of extremely powerful performance, but it requires a lot more work and maintenance on your part. Cloud deployments may be less powerful, but all that additional work is taken off your hands.
- Mobility: mobile accessibility is extremely important for modern businesses. It is available with both cloud-based and on-premise editions, but the latter may require considerably more work to deliver the same kind of remote availability.
When choosing an ERP system, it’s really important to understand the costs associated with the software compared with the benefits it might bring. If you’d like to learn more about this, please read our article ERP Cost Benefit Analysis.
So is Sage 200 cloud-based?
The short answer is ‘yes’. Even with the on-premise Professional edition, it can be cloud-connected or hosted in the cloud to enable many of the benefits of cloud hosting. But if a fully cloud-based system is what you want, then Sage 200 Standard is the solution for you, or you may consider exploring an alternative platform like NetSuite.
Why choose Eventura as your ERP implementation partner?
Eventura has been providing robust business solutions to countless organizations 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, you can request a free call back here.
