Skip to main content

Having an effective and efficient  way to manage financials is a crucial part of modern business, but before you can choose the perfect accounting solution for your organization, you have a big decision to make: will it be deployed on-premises or in the cloud?

While one method of deployment  is not inherently better than the other, there are advantages and disadvantages associated with each option. The best decision will depend on your unique business needs and requirements.

To help you make the best decision for your organization, we’ve pulled together a list of the pros and cons of each.

Cloud ERP

An on-premises ERP used to be more the  norm. But today, more and more businesses are turning to the cloud to cut costs and increase mobility and scalability. In fact, according to a recent study, 93% of businesses  are currently using cloud-based software.

A cloud-based financial management solution  is accessed through the web and is housed entirely on the vendor’s servers. Here are the pros and cons of a cloud-based solution.

The Pros

  • Faster implementation and deployment
  • Up-to-date applications available immediately across the enterprise
  • Less on-site support necessary
  • Typically easier to use
  • Subscription-based pricing (typically paid on a monthly or annual basis)
  • Lower cost of entry
  • Mobile accessibility
  • Easier integration options

The Cons

  • Could spend more on overtime
  • Less customizable
  • Software  vendor is responsible for data security (this can also be a good thing!)

On-Premises Solution

Even though cloud-based adoption is on the rise, many businesses are slow to pull the trigger, especially those who have already invested heavily into their on-premises systems. For others, a cloud-based solution simply can’t offer the customization options needed to conduct business as usual.  

An on-premises solution is installed directly onto company computers and runs on internal servers. Here are a few of the pros and cons of this type of ERP deployment.


  • Highly customizable to meet needs of your unique business processes
  • Total control over data security
  • Greater sense of control over implementation


  • Significant cost and time associated with upgrades and maintenance
  • Confusing and complex to operate
  • Time-consuming
  • Hefty, one-time licensing fee, paid up front

Generally speaking, on-premises ERPs are best suited for larger enterprises with big budgets who value customization and are prepared to protect their own data while cloud-based software solutions are ideal for small to medium sized businesses looking to get up and running quickly and take advantage of lower up-front costs.

Still feel like this decision is a black cloud hanging over your head? We’d love to learn more about your needs and help you make the best choice for your business. Get in touch or give us a call today to learn more about cloud-based versus on-premises ERP.