Just a handful of years ago there was really only one deployment method for your ERP system, and it was on-premise using physical servers. Today we can categorize three types of deployment:
- Licensed On-premises (Traditional): The software is licensed for use on a particular computer or for a set number of users and the software is located in-house.
- SaaS or On-demand: The software is not licensed or owned by the end-user, it is provided as a service by the vendor. The service is paid for on a subscription basis and can be accessed by way of the Internet. SaaS can be referred to as a Public Cloud.
- Hosted or Private Cloud: Licensed applications are hosted by a third party. This deployment method may be in a separate instance on a separate piece of dedicated hardware (Private Cloud), or in a separate virtual instances that is dedicated to a single organization where the application is running in a multi-tenant environment.
Which Method of Deployment Should I Use?
Before you make your decision as to which deployment method your organization will use, it is important to ask yourself the following questions and make sure you can confidently each question confidently:
- Does the ERP system have all the functionality necessary?
- Will you be able to support the system in-house?
- Will your ERP system be used to support a global business?
- What is the time frame you have to implement the ERP system?
- How important is security for your organization?
- What will happen if the ERP system goes down?
- How do you prefer to pay for the ERP system?
Keep in mind that there is no correct or incorrect answer to any of these questions. However, your answers will help guide the decision you make about how to deploy your ERP system.
Since the decision you make about your ERP involves a long-term financial commitment, as well as the infrastructure and human resources necessary to manage the whole ERP environment, your ultimate decision could be crucial. It is important to choose an ERP system that provides the functionality needed to operate the business at peak efficiency.
Equation Technologies recommends Sage 300 ERP. Sage 300 ERP (Accpac) is a comprehensive business management solution designed to lower the total cost of ownership by supporting various technologies, databases, and operating systems. Sage 300 ERP is available in multiple editions and allows you to add users and adopt greater functionality as your business grows with built-in support for multiple languages and multicurrency transactions, so you can do business all around the world. Sage 300 ERP provides the power and tools necessary to give your business leverage and improve productivity, envision success, and accelerate growth.
So should I host the system in-house, use a SaaS provider, or purchase the ERP licenses and outsource to an enterprise-level Cloud provider?
Most companies have been moving towards SaaS and Cloud models, while the costs associated with providing all the support and infrastructure for in-house has become increasingly high. This makes it harder to build a strong business case in favor of traditional in-sourcing of ERP systems. Since some ERP vendors offer systems in a SaaS model, those can be a good alternative if the application can still provide all the functionality and performance necessary. Sometimes the SaaS model can also take away from some of your ability to customize the ERP system to your own needs.
For most mission-critical ERP systems a Private Cloud offers the best of all worlds. The ERP system is able to deliver all the functionality that the business needs, but does not affect performance for high security. Private Cloud usually is more cost effective than in-house hosting.