On-Premise ERP Is Still a Good Choice for Some Distributors
Even though Cloud deployment of wholesale inventory management systems has been gaining traction for over a decade and is now firmly established as the current technology paradigm, many distributors have historically purchased their own server located on-premises and purchased perpetual licenses to use ERP software. Though on-premise installations are requested less and less frequently, the on-premise ERP ownership model is still a preferred option for many distributors.
When you purchase a wholesale inventory management system and have it installed on your own server, you are responsible for maintaining your server and network. Some companies that have dedicated IT departments are equipped to, and prefer to, manage their own hardware in this way. Similarly, when distributors purchase the Accolent ERP system, they are responsible for keeping the software current with the latest releases available. With this ownership option, distributors will have to enter into annual maintenance contracts with ADS Solutions.
Benefits of On-Premise ERP
- Server and software are owned and located on-premises increasing perceived degree of control
- Since system is located within distributor’s network, may experience better performance
- Perception of greater security
- Does not require Internet connectivity (depending on configuration)
- Easier to customize your wholesale inventory management system
Considerations with On-Premise ERP
- Up-front payments for hardware and software
- Need to have IT personnel on staff to maintain server and network
- Need to upgrade and/or replace your server periodically
- Need to keep software updated and perform data backups and other periodic software procedures
- Harder to scale your wholesale inventory management system as your business grows