Types of ERP Software Development and its vendors

Several types of ERP development are trending in the market today. So that you don’t get confused when an ERP vendor offers you this solution, try studying the following three popular types of ERP development.

On-Premise ERP Software

This is also known as conventional ERP or on-site ERP. This ERP system is installed locally on hardware and computer servers managed by IT staff. So, the company handles this ERP system in-house.

The initial investment for conventional ERP is high because companies need hardware such as servers to run the system. The company should also employ IT staff responsible for managing and maintaining the system.

Types of ERP Software Development and its vendors
Types of ERP Software Development and its vendors

In addition, upgrading this system also requires a lot of effort because the team has to deploy on several computers and re-implement various adjustments and integrations with methods that have been used previously.

Although it requires a lot of cost and effort, conventional ERP solutions are still in great demand because these systems allow companies to handle their data, thus ensuring security.

In addition, this system also offers ease of customization and provides more control over the implementation process. Conventional ERP solutions are usually more popular among large-scale companies.

Cloud ERP Software

What is a cloud-based ERP system? Often referred to as SaaS or ERP system is a type of ERP that allows companies to manage data centrally through an internet connection. The ERP vendor or company is responsible for running this system smoothly and oversees it through the backend. Users only need a username and password to be able to access the system from a browser.

The investment cost for a Cloud ERP system is much lower when compared to the investment cost of a conventional ERP. However, users are charged an overhead fee (usually per month) that must be paid for as long as they use the system. To find out more, you can download the ERP Software pricing scheme from HashMicro. This ERP system is more prevalent among small and medium-sized businesses. The advantages of the Cloud ERP system are as follows:

  • Faster Deployment
    Unlike on-premise ERP, Cloud ERP does not require additional hardware, so companies do not have to waste time procuring and installing IT infrastructure. Cloud-based ERP installation usually only takes 3-6 months, while conventional ERP solutions require at least one year.
  • Periodic System Updates & Upgrades
    The provider is constantly improving cloud-based ERP systems, and you can rest assured that you are always using the latest and most up-to-date version of the ERP system. Meanwhile, if you use a conventional ERP system, then updates and upgrades must be done by removing the adjustments that have been used previously.
  • High-Level Mobility
    Cloud ERP solutions allow you to monitor your business anywhere and anytime. Because this type of ERP is website-based, users can access the system through a supported browser. You don’t have to come to the office to see the various data you want because you can access it from your cell phone or tablet.

Hybrid ERP Software

A hybrid ERP system combines on-premise ERP and Cloud ERP and ERP solutions. This type of ERP system is a logical solution for many companies looking to upgrade their current conventional ERP system without changing it.

Apart from separating functions between conventional and cloud-based ERP, Hybrid ERP also helps companies to integrate or add parts to their existing ERP systems with minimum costs.