Just a handful of years ago there was really only one deployment method for your ERP system, and it was on-premise using physical servers. Today we can categorize three types of deployment:
Licensed On-premises (Traditional): The software is licensed for use on a particular computer or for a set number of users and the software is located in-house.
SaaS or On-demand: The software is not licensed or owned by the end-user, it is provided as a service by the vendor. The service is paid for on a subscription basis and can be accessed by way of the Internet. SaaS can be referred to as a Public Cloud.
Hosted or Private Cloud: Licensed applications are hosted by a third party. This deployment method may be in a separate instance on a separate piece of dedicated hardware (Private Cloud), or in a separate virtual instances that is dedicated to a single organization where the application is running in a multi-tenant environment.
Which Method of Deployment Should I Use?
Before you make your decision as to which deployment method your organization will use, it is important to ask yourself the following questions and make sure you can confidently each question confidently:
Does the ERP system have all the functionality necessary?
Will you be able to support the system in-house?
Will your ERP system be used to support a global business?
What is the time frame you have to implement the ERP system?
How important is security for your organization?
What will happen if the ERP system goes down?
How do you prefer to pay for the ERP system?
Keep in mind that there is no correct or incorrect answer to any of these questions. However, your answers will help guide the decision you make about how to deploy your ERP system. Since the decision you make about your ERP involves a long-term financial commitment, as well as the infrastructure and human resources necessary to manage the whole ERP environment, your ultimate decision could be crucial. It is important to choose an ERP system that provides the functionality needed to operate the business at peak efficiency.
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