Most businesses that roll out an Enterprise Resource Planning (ERP) system still opt to have it installed on their own in-house servers. But there are some compelling reasons to look at other options.
Open-source (or cloud-based) ERP systems that allow business to access info via the Internet have been steadily gaining in popularity.With this option, companies can download the software from a provider (often at no cost) and then pay the provider to tweak the system to their unique business needs. The provider will then offer tech support and software upgrades for the business.
This option generally costs less — and takes less effort to set up. In addition, businesses that opt for a cloud-based ERP have full access to the system’s source code. That makes it easier for users to understand all of its capabilities and limitations.
However, businesses that require extensive changes for a cloud-based ERP to fit their needs may may be better off just having the system installed on its own servers. Reason: The costs of configuring the software and writing its cloud may negate any savings.