International Journal of Applied Science and Technology

ISSN 2221-0997 (Print), 2221-1004 (Online) 10.30845/ijast

Cloud ERP VS On-Premise ERP
Wiam Yahea Al Hayek, Rasha Ahmad Abu Odeh

Currently, to make a massive difference in the company service and enables the company to compete in the market. Companies should have a system that manages its operations and accelerate customer service, and keeps the company ready for future enhancement to maintain business continuity. Before seven years and more, companies relied on a local custom ERP system, which is usually far from business best practices. Also, it follows business needs and does not force companies to develop and implement business best practices. This type of ERP system cannot maintain business continuity, and it will put the companies out of the market by the end of the day. That was why companies seek a ready-made international ERP system that has been built to match business best practices. A few years back, all big ERP companies start issuing a cloud version of their ERP system to replace the on-premise version. So another ERP system selection challenge has been added, which is whether to go with the cloud version or on-premise version. In this paper, the author aims to help the companies decide on ERP implementation type; the first part of the article includes a theoretical part of cloud-based implantation, explaining the main issues and most common definitions of the cloud. The second part presents the difference between the cloud-systems and on-premises systems by defining each type of implementation and shows the needed vital factors when choosing between Cloud ERP or On-premise ERP. In addition to illustrating the pros and cons of On-Premise and Cloud ERP implementation types, the research results were finally displayed.

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