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What are the differences between On-Premises, SaaS and a True Cloud ERP solution?

It is well accepted that technology drives growth and business improvement. Advancements in software applications have meant that they have become critical business tools by maximisation of profit, improvements in efficiency, fostering innovation, and allowing for rapid scale and growth. As organisations looked for ways to take advantage of these benefits, a new type of software capable of providing these features emerged – Enterprise Resource Planning -ERP.

Prior to exploring a Cloud Based ERP’s, we need to have a basic understanding of what Enterprise Resource Planning (ERP) is.

What is Enterprise Resource Planning (ERP)?

Enterprise Resource Planning (ERP) is an industry term for a complete set of services that help businesses manage, organise and aggregate data across business departments. ERP is a type of software that acts as a single source of data for the whole organisation, and integrates all functioning departments and their associated workflows, to enable the organisation to work as a single, cohesive unit. ERP software consolidates all elements of business into one application with a single archive that allows for real-time communication and information transfer from one section to another. Functionally, the software has been designed with analytical tools to easily interpret a business’s ‘health’ and covers the main aspects of business:

  • Financial Management
  • Supply Chain Management
  • Manufacturing
  • Customer Relationship Management
  • Sales and Marketing
What is a Cloud Based ERP?

The introduction of Cloud based solutions was a game changer for many businesses because of the scale, flexibility and change in economic model (CapEx vs OpEx). As a significant number of organisations acknowledged the effectiveness and benefit of ERP software, there was an increasing push to bring the benefits of ERP software to the Cloud. Cloud based ERP refers to ERP software and tools that are advanced, configured and are continuously updated, and securely available from anywhere at any time. Cloud based ERP allows businesses to focus on business productivity, efficiency, with a minimal requirement of effort from IT. It allows users to securely access the system over the internet through a web browser or web. The major benefits of using Cloud based ERP are:

  • Single system management
  • Strong data security
  • Focused on business-driven outcomes
  • Speedy implementation
  • Efficient communication and management of KPIs
  • Cost effective
  • Scale to meet growth, without costly upgrades or migrations

Cost Effective. Common misconceptions exist about Cloud based ERP that are holding companies back from harnessing the full benefits, and positive business, operational and economic impacts. The top four reasons organisations should consider for a move to Cloud based ERP are:

  • Improved business agility
  • Speed of implementation and deployment
  • Faster delivery of new features and functions
  • Support for business innovation with new capabilities

With an understanding of ERP, and Cloud Based ERP as a tool, we can now focus on the most critical factor related to Cloud based ERP, that being, the differences between On-Premise ERP vs “Fake” Cloud ERP vs “True” Cloud ERP.

On-Premise ERP
  • Locally installed using and organisation’s own servers and storage infrastructure
  • Priced under a ‘one time’ perpetual license fee
  • Requires Full Time IT administration/administrator
  • Requires significant customisation
  • Requires manual monitoring
 Fake” Cloud Based ERP 
  • Software as a Service (SaaS)
  • Hosted/Single tenant ERP
  • Priced under a monthly or annual subscription
  • Continuous and regular updates
  • Complex integration with other solutions
True Cloud ERP
  • Multi-tenant ERP Solution
  • Version less
  • Designed for Internet
  • Flexible
  • Scalable
  • Simply integrates with 3rd party Apps via API Connection
NetSuite as a True Cloud Based ERP

NetSuite, which sits under Oracle’s Cloud ERP portfolio, is a Cloud based ERP system that provides services that manage business finances, operations and customer relations. It caters to thousands of customers of varying sizes from small to medium business to large scale enterprises. NetSuite was built as a ‘Cloud First, Cloud Only’ solution, which allowed it to provide the scale and flexibility customers demanded, while keeping abreast of changing technologies. NetSuite Cloud based ERP has four key areas of benefit to organisations irrespective of sector vertical:

1. NetSuite Unified Cloud Platform 

  • Built for the Cloud
  • Multi-tenant
  • Built on Oracle Stack
  • Built to Run a Business
  • Unified Data Model
  • Everyone on Same Release

2. NetSuite SuiteCloud 

  • Point & Click Customisation
  • Powerful Scripting
  • Visual Workflow Builder
  • Integration APIs
  • No Version Lock
  • Built-in Platform

3. NetSuite ERP / Commerce / PSA 

  • Enterprise Resource Planning (ERP)
  • Financials
  • Professional Service Automation (PSA)
  • Supply Chain Mgt. (SCM)
  • Omnichannel Commerce
  • Customer Relationship Mgt. (CRM)
  • Human Capital Mgt. (HCM)
  • Built For NetSuite (BFN)

4. NetSuite’s OneWorld 

  • Multi-book
  • Multi-language
  • Multi-currency
  • Multi-country tax compliance
  • Master Data Management

NetSuite is a powerful Cloud based ERP that enables an interconnected business, with powerful features that enhance back-office operations and key financial processes, built on a scalable and flexible environment.

NetSuite provides organisations of all sizes, across all industries, access to consolidated real-time data, fostering powerful business decisions. By providing deep insights into Financial Management, Inventory, Warehouse Management and Supply Chain solutions, organisations are empowered to increase revenue, reduce cost, improve efficiency and mitigate risk. Taking care of business allows organisations to foster innovation and growth.

As a premium provider of NetSuite solutions, OneKloudX is able to work with organisations to help them understand whether a Cloud based ERP is the right fit for their business. One of the tools we employ, our ‘Maturity Assessment’ will provide insights into how an organisation’s technology posture rates within its industry, and against similar sized businesses. OneKloudX exists to enable businesses to gain powerful insights into the critical data that runs them. We help or clients get the right data, to the right person, at the right time, in the right format, to make the right decision.