Benefits of On-Premise vs. Cloud Inventory Management Systems

On-Premise Inventory Management Systems No Longer Have the Benefits They Once Did. In Fact, On-Premise Systems Are Loosing Market Share to Cloud-Based Inventory Management Systems

Even though Cloud deployment has been gaining traction for over a decade and is now firmly established as the current technology paradigm, many businesses still inquire about the benefits of on-premise ERP inventory management systems. Businesses that choose on-premise inventory management systems need to purchase and maintain their own servers and purchase  perpetual licenses to use their ERP software. This takes away from the capital that could otherwise be invested in growing the business. Instead with a Cloud solution, they could be paying a monthly SaaS subscription and avoiding these large capital expenditures and the IT overhead required for maintenance of their systems. This is one critical reason that legacy, on-premise inventory management systems are rapidly being displaced by the far more flexible Cloud-based ERP systems like Accolent ERP.

Former Benefits of On-Premise Inventory Management Systems

  • Server and software are owned and located on-premises increasing perceived degree of control (Not correct)
  • Perception of greater security (Not correct)
  • Does not require Internet connectivity (Yes, but limits ability to access other resources e.g., lookup freight rates)
  • Easier to customize your wholesale inventory management system (Yes, but beware of the costs of using custom software)

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
  • Harder to scale your wholesale inventory management system as your business grows

Call us to discuss if an on-premise installation is the best choice for your company.