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Break-Up With Your On-Premise ERP and Fall In Love With The Cloud

Rob Carrillo,

Cloud ERPs can make mobility for your employees easier by being accessible through devices with an internet connection

At first, everything is great. You're good together and the honeymoon phase is just the best. A few years down the road, things get bumpy. For others they seem to work through it and move on. But you feel things just  getting more and more difficult. They start to become needy. Just more and more demands piling on.

One of the many trends that have been sweeping across the enterprise resource planning systems (ERP) market is that on-premise ERPs are on the way out and Cloud ERPs are in. Just take a look at how these top 3 ERPs in the market compare against each other.But now, another option comes along. It just feels easier and better suited for the times. So now you start thinking... Should I switch to Cloud ERP? 

But you know that new is not always better. So, to help you decide whether you should pick a Cloud-based ERP or not, here are some of key features.

Less Costs

With an on-premise ERP solution, you are not only paying for the software solution, but you will need the hardware infrastructure that will host it. Servers can be expensive and these aren't just one-time costs. Here are some of the expenses that you could be saving when you resort to a Cloud-based ERP:

  • Set-up
  • Hardware 
  • Maintenance
  • IT personnel
  • Implementing software upgrades
  • Saving energy (no need for servers or cooling systems)

When you have a cloud solution, there isn't much fuss about setting it up. You just need a device with an internet browser and you can start accessing it immediately. Since all the infrastructure is maintained by your Cloud ERP provider, you don't have to spend money on a large IT team to maintain your system. 

Implementing upgrades are cheaper and easier too as they already implemented centrally and will be adopted seamlessly by all users. Moreover, any integration you implemented will be retained. With on-premise solutions, you have to deploy the new system to all the devices that use it and all integrations and customizations you previously implemented in the old system are eliminated.

In fact, Industry analyst Hurwitz & Associated found that Cloud solutions' total cost of ownership can be 50% cheaper than on-premise business solutions. Not only the private sector uses Cloud computing. Even governments have adopted Cloud and made some innovative applications for serving citizens.


Not even a spike in your business needs can derail your Cloud solution. Imagine the situation where your business needs surpass the capabilities of your ERP. What now? Upgrade of course! But with an on-premise solution, you may be required to upgrade your hardware or install an  upgraded solution across your entire system. With a Cloud-based ERP solution, the ERP automatically allots more resources for you to ensure that downtime is minimized. 

Imagine if your company's IT needs contract. You'll still be stuck with hardware that has excess processing power. With Cloud computing, the system can automatically allot resources making operations more efficient.


When businesses of today are highly reliant on business processes and the systems that they are dependent on, you cannot stress the importance of system uptime high enough. Even if processes are not so critical, the fact that things in your office are working as expected reduces the stress at the workplace. 

Cloud ERPs are maintained by a business whose sole aim is to keep their product up and running. A significant amount of resources, both time and money, are devoted to this. For an on-premise solution, you can only depend on your resources - your IT team and your hardware. Wouldn't it be nice for this to be taken care of?


Everyone has some kind of device and chances are they are connected to the internet. With Cloud solutions, you can turn any device of your employee into an access point for them. Since the system runs on real-time information, this can be easily accessed by employees wherever they are as long as they are connected to the internet. With on-premise solutions, this can be more complicated. 


For Cloud solution providers, security is a primary concern since their business depends on their services being reliable and trusted. So, they make it their business to ensure the highest levels of security possible. When you acquire on-premise solutions, security is only guaranteed up to a certain extent by your provider. The rest solely depends on your IT team and the systems they have put in place. 

Naturally, you can turn security into your IT team's top priority but you may incur more costs by doing so. Compare that with Cloud providers who are already experts in security.

There are other reasons why Cloud solutions are beating older systems no matter how established they are. In the end, it is up to you and your company's needs which will ultimately decide your final choice. NetSuite is certainly one of the top solutions to consider when picking out an ERP.  

Take a step further and learn more about how #1 Cloud ERP NetSuite was used successfully by Italian companies to simplify and increase the efficiency of their operations. Download our free case study pack NetSuite: Successes in the  Italian Market.

NetSuite Experiences in Italian Market

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