As you venture down the path towards purchasing an ERP system you will eventually have to decide what form of hosting you want. While your system will function fine using either method, it is important to know the pros and cons of each option and the wants and needs of your organization.

Let’s start by defining each method:

Now let’s dive in deeper to discover the advantages and disadvantages of each when it comes to cost, security, customization, and implementation.


When it comes to cost, the main determining factor for buyers is if you want to spend a large amount of money up front and a small amount of money per year, or a medium amount of money up front and a medium amount of money per year. Studies show that the costs converge around the 10-year mark with On-premise becoming a better fiscal option beyond that, but it is important to weigh all the factors as they relate to cost.


The main difference in security between the two options is control and trust. If you think that your team and facility do a better job at keeping data secure then On-premise may be the better option for you, but if you trust that the hosting vendor has ample security measures put in place then Cloud-based might be the way to go.


Customization is always a nice feature when it comes to software, but with great customization comes great complication. Sometimes simpler is better when it comes to minimalizing down time, having operations run smoothly, and overall speed, but limitations on functionality can take a large toll on companies that use complex processes.


Implementation is mainly about time. Assuming the system is set up correctly in both cases then the only difference is how long it takes to get up and running. Depending on your timeline and patience this can be of great or little importance to you.


Now that you know your options you can decide with method is right for your business. If you’re still not sure or would like some more information please reach out to us. At CRI we have experience implementing both hosting options and can give you a clearer picture of how each can benefit you.