Tue. Dec 5th, 2023

Businesses today are under pressure to remain competitive in an ever-changing landscape. Data is a valuable asset for businesses transitioning to a digital environment. Companies require technology to integrate data into a centralized platform as information flows back and forth from various channels. This resulted in a surge in enterprise resource planning (ERP) software. One major question that businesses must address is whether to use cloud ERP or on-premises ERP and the benefits of Dynamics 365 cloud migration.

What Is the Difference Between Cloud ERP and On-Premises ERP?

The primary distinction between on-premises and cloud ERP is the method of data storage. Cloud ERP software functions similarly to on-premises software. All ERP servers and data storage are hosted by an ERP provider. Logging into a website allows users to access the ERP. Many organizations choose cloud ERP platforms to reduce maintenance costs, provide easy access to employees, and have more configuration flexibility.

Below is more information about the key differences between on-premises and cloud ERP instances.

Maintenance Charges

If you choose on-premises ERP, your company will be responsible for the installation costs. Smaller organizations that do not have an IT team usually hire a partner to help them manage and deploy the ERP. Installing an on-premises instance takes longer and costs more.

Cloud ERP platforms are deployed to the cloud, eliminating the need for businesses to purchase and maintain costly servers and hardware. Businesses typically pay a subscription fee to cover the cost of accessing software and paying the ERP provider to maintain servers and data.


An on-premises ERP platform gives organizations complete control over how the application is customized. Making changes to fit a company’s needs, on the other hand, can cause ERP implementation to be delayed. Employees may not have access to real-time data if an on-premises ERP is used.

Using a cloud ERP system will give your company real-time updates with minimal downtime. Your provider is also responsible for performing security patches to secure your instance. They can also make any changes to your ERP required to meet your organization’s business needs.

Integration and Scalability

When working with an on-premises ERP implementation, the need to integrate with an existing legacy system must be considered. The service provider integrates all moving parts for cloud ERP systems to ensure seamless integration with existing company resources.

Based on the growth of your business operations, your organization can expand the capacity of your ERP, making it a more flexible option.

What Is Involved in ERP Implementation?

Planning is critical whether you are considering on-premises or cloud ERP implementation. You should create a roadmap, typically a checklist, that covers the tasks involved in moving the project forward. The following are some high-level steps to consider during the process:

  • Research And Planning
  • Establish Action Plans 
  • Implement The Platform

Get Help with Your ERP Implementation

Online24x7 can help you set up your new ERP platform and provide guidance and support with Dynamics 365 migration consulting services. Contact one of their experts to learn how we can assist you.

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