Hosted vs On-Premise vs Cloud - SAP Business One - B1 Systems
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Hosted vs On-Premise vs Cloud

The Benefits of Cloud vs On-Premise Solutions


Even in 2019, cloud ERP vs on-premise ERP remains a hot topic. I think it goes without saying, out of the two, cloud-based services are the most popular, but that doesn’t mean you should rule out traditional on-premise ERP solutions.


After exploring the cloud vs on-premise pros and cons, we can see that each option has its own advantages and disadvantages. Since cloud-based ERP software relies on good internet connection, ultimately the choice you make really comes down to your business needs and the speed of your internet.


After considering the two options available with most business management solutions, we can take an in-depth dive into the benefits of cloud vs on-premise solutions.

On-Premise Definition


To kickstart the on-premise vs cloud-based solutions debate, the first thing to do is to give you a simple on-premise definition.


With an on-premise deployment, you take full ownership. You pay a one-time fee for the software, install it onto your “local server”, and maintain it yourself. Typically, this is managed by your IT staff where they have full control over the software or hardware and its delivery.

SAP Business One On-Premise Features

SAP Business One on-premise deployment involves a large upfront cost for the software, but with no monthly cost, ultimately this means a lower long-term price.

You take full responsibility for the server maintenance, upgrades and backups of the software.

With SAP Business One on-premise software, you can customize your system in any way necessary to your business.

You have complete control over your data security, meaning you must have up-to-data data protocol’s in place.

Cloud ERP Definition


A cloud solution is what most of us are accustomed to. Cloud-based ERP means the software provider provides everything, from the license and server to the updates and maintenance. You’ll get complete access to this through a web browser running on a monthly subscription basis.

SAP Business One Cloud Features

Because you are paying an on-going monthly subscription, you get a complete solution without the upfront cost.

You don’t have to pay for the maintenance or upgrades of your software as these are managed as part of the subscription fee. However, most companies do involve additional training and support costs.

To keep it brief, cloud ERP’s are less flexible than on-premise solutions and work best when you are straightforward with what you need from the software.

Date security is in complete control of your supplier. This can benefit you if your systems aren’t as robust as they could be or could cause an issue is you prefer to keep sensitive data in-house.

Hosted vs On-Premise vs Cloud


After exploring the cloud vs on-premise pros and cons, you may want some features from one option and some features from the other.


Now, what if I told you there was a third option? An option that would give you the advantages of both on-premise and on cloud solutions.


With SAP Business One you also get an additional third choice of hosted (Hybrid) deployment. With this, you really do get the best of both worlds.

Hosted ERP Definition


In between cloud ERP vs on-premise ERP is a hosted solution. This software is based on your own private cloud server, where the software is still bought and completely owned by you. With this, you get an upfront license fee of the software and monthly subscription to rent your space on the cloud server.

SAP Business One Hosted Features

There’s an upfront cost for the license which is followed by a monthly subscription fee on your own private cloud server.

Move the infrastructure and scale to your business requirements.

With a private cloud, you get complete freedom of any customizations and add-ons. Software upgrades from the provider can be managed much easily due to the dual web browser access.

Data and data security is retained by you, but with the added benefit of storing information in the cloud. This means data can’t be damaged or lost.

Want to find out more? Why not get in touch with us today and book a free consultation? 


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