Cloud Computing V On-Premise Solutions for ERP and CRM

 

There is a lot of talk about the benefits of cloud computing these days, however for most folks their awareness of cloud computing in the Enterprise Resource Planning and Customer Relationship Management market is at best, well, cloudy.

The Issues of Cloud Computing v On Premise Solutions
Fundamental issues to think about when deciding between cloud computing versus on-premise server solutions are preliminary cost, continuing cost, IT personnel, security, consequences of downtime, and competitive advantage owing to customizations.

The Pros of Cloud Computing:
1. A method to lessen original expenditure and get in the game for larger solutions
2. You do not require your own server
3. You do not require your own IT personnel

The Cons of Cloud Computing:
1. Dependent on internet connectivity - if internet is interrupted, you are interrupted
2. Increased costs over the long term - akin to renting as compared to buying a vehicle
3. More difficult or impractical to achieve any advantage from customizations to the software since the customization paradigm is generally not available in cloud computing
4. Larger security consequences as the data is stored with other companies' data

Synopsis:
Cloud computing is terrific for smaller businesses with limited resources that require out-of-the-box functionality and may possibly still do things manually if the internet ever was interrupted for a period of time. On-premise servers are splendid for larger businesses which make use of customized systems to achieve market advantages further than their competition, or for businesses with mission-critical applications which they cannot afford to be lacking for a period of time.

Jason Spanos is VP Sales at eSoftware Professionals - a Microsoft Dynamics ERP and CRM solution center. Jason has 15 + years expertise implementing Enterprise level software systems. Jason writes about software project management best practices, best practices in inventory management, material requirements planning (MRP), and top concerns facing food industry executives. Jason is a Project Management Professional (PMP status), APICS certified (CPIM status) with a degree in Electrical Engineering from the University of Waterloo, Ontario, Canada as well as a Masters degree in Economics.