The difference between cloud ERP and traditional ERP

There are various tricky legends about ERP in the Jianghu. For example: the difference between cloud ERP and traditional ERP; the advantages of cloud ERP compared with traditional ERP; how do large enterprises usually choose between them? What is more reasonable for small and medium-sized enterprises? Why do many enterprises rush to choose cloud ERP for cloud All kinds of questions are like a pop-up screen, which are lingering in the minds of many entrepreneurs. We call it: Why are 100000 cloud ERP in the digital era? Looking at the world, the digital transformation is undoubtedly a necessary and long journey, ranging from the world’s top 500 to small and medium-sized private enterprises without exception. Who can explain all the above questions at once? It’s almost impossible. Let’s choose a topic for each issue to further expand. In this issue, let’s talk about the difference between cloud ERP and traditional ERP.

What is the difference between cloud ERP and traditional ERP?
The most fundamental difference between cloud ERP and traditional ERP implementation methods is carrier:
Traditional ERP relies on its own hardware and servers, which need it personnel to manage; while cloud ERP Based on SaaS is managed and operated by ERP suppliers. In short, the traditional ERP implementation of procurement, investment, everything has to come their own, not to mention the huge amount of money, but the vast majority of cloud ERP hardware, software, including upgrades, operation and maintenance are provided by suppliers, only need to pay on an annual basis, more cost-effective, more in line with the current enterprise light asset development concept.

Then compare the effect of implementation on different carriers: in terms of speed, cloud ERP is definitely faster, reducing the purchase of hardware, computer room, etc. and the recruitment of IT personnel. In terms of security, one is on the cloud server and one is local. It seems that localization is more secure, but in fact, suppliers are reliable, and cloud ERP is more secure. In terms of cost, cloud ERP pays by year (low mortgage) and traditional ERP pays in one time (high full payment).

Differences between cloud ERP and traditional ERP implementation methods internal and external:
There is only one traditional ERP implementation direction, that is, the optimization and setting of the internal management process of the enterprise; the implementation of cloud ERP is totally different, which can be called internal and external repair: not only the optimization and setting of the internal process of the enterprise, but also the participation in the external operation of the enterprise, which is very comprehensive.

The difference between cloud ERP and traditional ERP implementation and deployment process — timeliness:
Time effectiveness is not only about time, but also about efficiency. In contrast, the traditional internal deployment of ERP is often one year long, which makes many enterprises can not afford to cry. The deployment of cloud ERP usually can be completed in 3-6 months. It can be completed in a few weeks before it is launched and applied. You don’t need to worry about the maintenance and update of the software. It is always up-to-date and stable.

Cost difference between cloud ERP and traditional ERP implementation – benefits:
As for the cost of cloud ERP and traditional ERP implementation, we can explain it through a comparison of SAP cloud ERP. SAP Australia and its partners analyzed the cost factors of traditional ERP implementation and cloud ERP Implementation Based on the real customer cases, and got the accurate cost case model.

Compared with the annual expenditure, cloud ERP is only one-half of the traditional ERP. More than one time of capital investment is mainly reflected in the investment and upgrading of hardware facilities and the employment of internal specialized IT personnel. In contrast, cloud ERP does not need to bear such a heavy burden, all of which can be easily handed over to cloud ERP suppliers.

There are so many differences between cloud ERP and traditional ERP implementation methods. Of course, when it comes to some flexibility and personalized requirements, cloud ERP still has unparalleled advantages. For example, the deployment of cloud ERP is easier and more flexible than traditional ERP, and it may even be deployed by pressing a button. With the expression of experts: the biggest feature of cloud ERP is to adopt standard solutions as soon as possible through simplified deployment process; and because of the timeliness feature, enterprises can get value from the latest technology and innovation. For a more comprehensive understanding, you can consult acloudear, SAP cloud gold partner.

This article "The difference between cloud ERP and traditional ERP" by AcloudEAR. We focus on business applications such as cloud ERP.

Scanning QR code for more information