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Enterprise resource planning software (ERP) runs all of your key back-office operations and financial business processes to lower operating costs and increase productivity. NetSuite’s ERP functions also free up resources that can be used to build relationships with your clients. While the decision to implement ERP is an easy one, deciding between cloud-based and on-site ERP is more complicated. Here are some key factors that you should consider with your King of Prussia, PA based NetSuite consultant when choosing between cloud and on-site ERP.

It is first helpful to have an understanding of the key difference between cloud-based and on-site ERP. On-premise ERP solutions are installed locally on your company’s hardware and servers while cloud ERP is provided as a service where the ERP software and its data are managed centrally by the vendor and accessed by customers using a web browser.

Ownership Costs
Now that you understand the difference between on-site and cloud-based ERP, you can begin to analyze the ownership costs for each solution. On-site ERP systems usually require large upfront and ongoing investments to purchase and manage the software, hardware, servers, facilities, and staff. Cloud-based ERP, on the other hand, is much more affordable because the software is hosted and maintained elsewhere and accessed through your computer’s internet connection. One industry analyst study found that  cloud-based ERP can cost 50% less than on-site ERP over a four-year period.

Performance and Accessibility
Because cloud software architecture is designed for maximum network performance, cloud ERP often delivers better performance than on-site solutions. Cloud-based ERP also dynamically provisions additional resources automatically to adapt to your real-time needs. And if you are constantly on-the-go, you will appreciate the ability to access data via the Internet anywhere at any time. Your NetSuite consultant can show your team how to access real-time information on laptops, smartphones, and tablet devices while they are telecommuting.