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Benefits of a ‘Cloud ERP Software Suite’ Over an ‘On-Premise ERP’ – for Mid-Market Businesses

Updated: Apr 6, 2021

Cloud ERP software, which was once limited to larger organizations has witnessed its popularity in small to medium-sized businesses as a result of its accessibility and unique capabilities. There are numerous reasons as to why SMBs did not deploy ERP solutions for so long duration for implementation of a traditional ERP system, large investments, expensive upgrades and customization, dependence on the IT department, and additional cost of hardware and servers. It is due to these challenges that many small and mid-sized organizations wanted software that not only has industry-specific functionality but is also budget-friendly.

Eliminating the Cost

One of the primary reasons that mid-sized enterprises were not able to use ERP solutions was its cost. Ownership cost comes at the forefront while choosing the type of ERP deployment- on-premise ERP or cloud ERP. On-premise ERP solutions are the ones that are installed locally on the company's hardware and servers and further managed by the IT staff of the company itself. On the other hand, cloud ERP is a kind of service that is deployed in the company’s existing IT infrastructure. Here, the data of the ERP software is managed centrally with the help of a secure web browser. In this kind of deployment, the companies have to just pay a subscription fee without a requirement of any resource or hardware. Whereas, on-premises ERP solution requires a heavy initial expenditure on servers and software as well as an internal IT team for running the ERP system.

It is found that the initial cost of the cloud-based ERP systems is approximately 30%-50% less as compared to the on-premise solutions. Since the cloud-based deployment doesn’t need any separate servers and hardware, it is generally easier and faster to get started with. Further, since the maintenance is handled by the vendor, there is no botheration of hiring specialized IT staff. This, in total, wrecks the extra cost that was usually associated with ERP solutions.

Cloud Based ERP Software

Eliminating the Complexity


Since data is stored on a cloud ERP, it is accessible anytime, anywhere and through any device using just an internet connection and lets the management have better control over business operations.


It is quite burdensome in the case of on-premise ERP systems to keep up with the changes because, in case of every update, the company needs to re-implement the changes with the help of its IT team in terms of hardware and contracts. On the other hand, the cloud ERP software keeps getting updated with the latest functionality without any hassle from the IT department.


If the entire data is integrated on a platform, accurate information comes in handy. An integrated cloud-based ERP makes the database centralized and enhances the execution of the operations by increasing visibility and accuracy.


Since a cloud-based ERP system is deployed outside the existing IT infrastructure of the company and is maintained by the vendor, it requires less time and resources of the company unlike on-premise ERP, which requires more implementation time and a specialized IT team for management.

Fulfil your Business Requirements with an Intelligent Cloud ERP Software Suite from SAP

An advanced cloud ERP system, like that by SAP, can help companies cover the operations of the business with an ‘intelligent suite’, with the following capabilities:

  • Get a real-time view of your financial situation.

  • Drive customer engagement by managing your marketing, sales, and service processes.

  • Enhance your self-service procurement capabilities by the management of sourcing and contracting, RFQ processing, and managing supplier base.

  • Organize and monitor projects in real-time across all the functional areas.

  • Manage your supply chain by modelling your internal and external supply, integrating the value chain for cost transparency, and maintaining up-to-date inventory.

  • Streamline HR processes, such as organization management, workforce administration, time and attendance, and employee self-service.

A midsized company needs to choose the right partner for a hassle-free transition to an intelligent cloud ERP software suite.

Gloitt, with a track record of 27 years in delivering software solutions has the expertise and experience to optimize and implement SAP solutions in a way that minimizes risk and increases efficiency. Gloitt has got the expertise that spans over 14 industries and has a client base of 900+. Thus, Gloitt can be your right partner to deploy cloud ERP solutions.

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