Cloud ERP vs. Hosted ERP Software – Understanding Your Options

When you are selecting a new ERP software system today, there are more options to consider than ever before.  Not only do you need to select an ERP system that has the functionality and usability that is going to make a beneficial solution for your business, but you also need to decide how that ERP software is going to be deployed – or where the data is going to be stored and how the system is going to be accessed.

As Voltaire (and Uncle Ben from Spiderman) says, “with great power comes great responsibility.” When it comes to ERP software, the power of choice you now have in your deployment option comes with the responsibility to learn about those options and truly understand them so that you can make the best choice for your organization.

To better understand all of your options, get a complimentary copy of our eBook: Understanding Cloud Services Deployment Models & Licensing Options When Selecting ERP

Of all of the options available, the two that raise the most questions are Cloud ERP and Hosted ERP, more specifically, “what is the difference between them?”

Both Cloud ERP and Hosted ERP are options available through Private or Hybrid Cloud deployments.

Hosted ERP – You may see the term “Hosted ERP” used interchangeably with “Infrastructure as a Service” or “IaaS.” IaaS means that you purchase and own your ERP software licenses, that your server licensing needs are leased through your cloud services provider. This can lower your up-front, out-of-pocket costs by removing the need to update existing or acquire new hardware infrastructure at the beginning of an ERP implementation project.  IaaS can also reduce your ERP implementation timeframe because your cloud provider will already have a proven methodology in place for installing your ERP environment. When you use a Hosted ERP or IaaS deployment for your ERP software, you will pay annual software maintenance fees as well as optional software support plans if desired.

Cloud ERP – The term “Cloud ERP” could refer to any of the deployment options for ERP solutions available, but most often it is referring to “Software as a Service” or “SaaS ERP.”  SaaS ERP enables you to lease your ERP software and the infrastructure that supports your solution, like servers, back-up, disaster recovery, etc.  This option is typically priced on a per user per month basis.  With this option, if you decide to move your ERP system on-premise or to change cloud providers, you will need to purchase the software (this option does not exist from all Cloud ERP providers so it is critical that you understand up-front who owns your business data and how to take it with you if you need to change deployments or providers.)

To get an outside, experienced perspective on whether or not your business is a good candidate for a Cloud ERP or Hosted ERP solution, request a Cloud Impact Assessment today!

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