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An Objective Comparison between On-Premise ERP and Cloud ERP

With the rapid advancement in ERP software technology, one question often comes in our mind – “which method is best to access the ERP, On-premise or Cloud?” Following are some of the key areas you should consider when deciding between cloud ERP and on-premise ERP software:

Integration and Customization

For on-premise software, these two features are available whenever you spend the money. The data will be under your control in your server. The only drawback is that whenever the ERP provider launches a new update, some of your customizations might become incompatible and you have to rework the software.

On the other hand in the cloud ERP system, customization and integration can be limited in a few cases. You have to talk to your business partner and service provider to provide you with needed connections and limit outside links. There are chances of the availability of third-party integrators that are not easily found.


In the case of cloud ERP, the system is deployed on servers that are managed by your ERP provider. It’s the responsibility of the provider to keep your data safe and secure as you have rented the space for your data. The data is kept on the same servers as other clients but separately.

Whereas in on-premise ERP, you keep the data on your servers. Your IT department keeps the servers running and manage backups and security of the data. In this case, only your data is on the server.

Customer Support

You get the help desk support in your cloud subscription fee. The ERP provider will keep the system up-to-date at all times, which means immediate software improvements and bug fixes. You can use a copy of your data that’s regularly refreshed for experimentation or training purposes.

In the case of on-prime ERP, if you choose to maintain an annual support agreement, you will get access to the same bug fixes and improvements, but it’ll be the responsibility of your IT staff to load those upgrades. However, you can select which upgrade you want according to your business requirements.


When you have to install an on-premises system, you need to purchase a license and pay a single upfront payment to use the ERP. Also, you have to pay annual support fees for bug fixes, system upgrades, help desk service, etc..

If you choose a cloud ERP software, you will have to agree to monthly or annual payments. Sometimes, you don’t have to pay any upfront payment. The charges go on as long as you are a cloud ERP user.

Both on-premise and cloud ERP solutions are excellent choices according to the right circumstances. You need to understand those choices and apply them according to your business needs to use the full potential of ERP. LOGIC offers both, on-premise and cloud ERP software service giving you the flexibility to choose the right platform for your business. To know more about what would be best for your business, contact us.