Cloud vs hosted

What is Cloud ERP?

If you ever wondered, whether cloud ERP and cloud hosted ERP are different, the answer is yes. Cloud ERP or cloud based ERP work as a SaaS (software as a service) model. This means that these ERP systems are usually subscription-based and run completely online. Typically, a client pays a set monthly fee to use the ERP software. Although this model is less costly, it definitely has its deficiencies. For example, such systems are less flexible and less customizable, the software is updated automatically (which usually happens at the most inconvenient time). Furthermore, sometimes the clients don't really own their business data. So, when they try to migrate to a different kind of ERP system, they have to pay to receive their own information.

Defining Cloud Hosted ERP

A cloud hosted ERP solution is similar to your usual on-premise model. Traditionally, a client might be required to buy several software licenses for a certain ERP system, e.g. Exact Macola 10. Then the system has to be installed on the client's own servers. In case of cloud hosted ERP, you still need software licenses but there is no need to have your own server infrastructure, as your cloud hosting partner will host the necessary software. As is the case with the SaaS model, you will be able to access your ERP system and other programs from any device connected to the internet. Although this might cost you more at the beginning (you will be required to purchase full server licenses), your hosting partner will take care of all the other fees, including maintenance, data backup and software update expenses. Besides, this model is fully customizable to fit your business needs and you remain the sole owner of your information.


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