Sponsored content: The following insights are brought to you by Sage, the global market leader in cloud business management solutions. 

From the number of pictures we store on our phones, to the on-demand streaming services we use, we are all more than familiar with the benefits the cloud brings to our lives.

Businesses are seeing the benefits of storing data in the cloud, too, like cost savings across hardware and deployment, an upgrade-free world, the availability of AI, and the emerging idea of collective insights – where organizations can predict customer trends using big data analysis.

What are the benefits of ERP?

From streamlining operations to managing complex business processes and using data to augment decision making, more and more businesses are discovering the benefits of enterprise resource planning (ERP) solutions as a key driver of digital strategy.

The challenge comes when picking the right type of deployment. From hosted and on-premise to public cloud and private cloud, there are a variety of options to consider amidst a changing market landscape. Generally, cloud deployments are coming to the fore, with a new report predicting that the cloud-based ERP market will grow from $24.5 billion in 2019 to $37.7 billion by 2024.
But not all business needs are the same. What’s right for one business, may not be for others. Understanding which deployment option best fits is vital to ensuring a smooth implementation.

Deployment types

On-premise deployment

  • The traditional norm in the ERP space
  • Provides businesses with full control of data and a myriad of customizations, while enabling in-house IT teams to respond to issues immediately
  • Drawbacks include that it generally requires a large capital investment for perpetual licenses and infrastructure
  • The cost depends on the size of the business; recurring fees, training, upgrades, and staffing costs should also be considered

Cloud deployment

  • Generally quicker, cheaper, and less resource-intensive than on-premise
  • High availability, low latency 
  • The business isn’t responsible for managing or maintaining the platform

Within the cloud deployment space, there are two options to choose from: public and private cloud. 

Public cloud

  • Less expensive solution that lets organizations capitalize on their vendor’s innovation road map while giving them the agility to remain competitive

Private cloud

  • Added layer of security, as an organization’s data will be completely isolated from anyone else’s
  • Greater capacity for personalization, as businesses have more influence over upgrades and modifications

Hosted deployments

  • Considered the middle ground between on-premise and cloud 
  • Third-party data center hosts the platform and hardware, but the business maintains ownership of the database

Meeting business needs

You can pick the right deployment by focusing on fundamental factors. For example, one driver is the debate between CapEx and OpEx.

On-premise or hosted environments come with a perpetual license with a one-off cost, rather than the subscription-based license found in cloud environments. These solutions also manage software updates in house, at a time that suits their operations. 

For many businesses, a subscription license works best because it helps easily add services, scales up their infrastructure, and automatic updates mean you’re always on the latest version.

Ultimately, every business is unique. Organizations should take the time to work out their key requirements and choose a deployment option that works for them and the future of their business.

For more information on ERP deployment solutions, please visit Sage