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The Argument for On-Premise ERP Solutions

Sun, Nov 24, 2013 @ 09:45 AM / 0 Comments / in ERP Software, Cloud ERP SaaS, Microsoft Dynamics AX by Andi Conti

I heard something today that made me rethink all of the hype surrounding cloud erpOn Premise ERP Software systems: “senior level decision makers are emotional people that need to be in control. “

With that being said, what kind of effect does that have on c-level executives who thrive on having real-time, imperative data at their fingertips? What if the cloud-although efficient and productive in its disposition-builds a barrier between that c-level executive and the amount of control they have over this data? What tips the iceberg? What makes us rethink on premise erp?

Intruders of Cloud ERP Systems

If the idea of data “floating around in cyberspace” was enough to disturb you, then the recent fear of the devastating malware, crypto-locker program is especially devastating for those that operate in a cloud environment. Crypto-locker is notorious not only for its ability to quickly encrypt a user’s data files, but also because it of its propensity to gain access to additional files within your network, infecting cloud storage.

Encryption and the possibility of losing data puts all of your business at risk. According to news sources, the crypto-locker required a “$500 dollar ransom for the decryption key.” Some sources claim that even after paying the ransom, their files were still not decrypted. More importantly, the fact that a malware program can obtain access to your enterprise accounting software via the cloud questions the safety and confidentiality of that data. 

On-Premise ERP: 1 Cloud ERP Systems: 0

Installing a Simple Software Package

What makes me laugh about cloud erp systems is not only the lack of control, but the lack of control to a point to where even simple software updates require requests to the cloud provider. A simple case is when you need to install a software package that requires access to services. Even if the software package is complementary software to your core system, your ERP cloud provider may restrict you from installing the software.

Don’t get me wrong-the relationship between you and your Microsoft Gold ERP Partner should be a close one-but not to the point to where you’re holding hands. When thinking back to the quote I heard today about senior level executives and their inherent desire to be in control, it’s hard to image patience ensuing every time an installation or update needs to be made.

On-Premise ERP: 2 Cloud ERP Systems: 0

Development Portals

In a more advance case, what if you are doing development and have to open ports to communicate to external entities?  While this may sound Star Trekkish it's the norm for doing business in today's world.   Documents and data often seamlessly pass between entities with minimal user intervention.   In order to address these requirements you may have to present a case to your cloud provider to open a port.  You have to be prepared that you provider may not respond immediately and can take weeks to address, meanwhile losing lead-time on projects and other dependent tasks.

As Spock once said, “The needs of the many outweigh the needs of the few.” Many will need the ability to pass between entities, but few will hold the ability to do so.

On Premise ERP: 3 Cloud ERP Systems: 0

On Premise is Here to Stay

Although cloud erp solutions may have its advantages for some organizations, the potential set-backs could prove counter-productive for highly technical and dynamic organizations.

If for one last hail mary at proving the viability of on premise ERP in today’s world, the frequency of which Apple comes out with a new iOS is a prime example of the ever-upgrading IT industry. If you had to submit a request everytime you updated your iphone, would you do it?

In conclusion, on-premise gives you a greater amount of control over the environment so you can better respond to your IT demands. The cloud ties your hand-and unless you want to be tied to your cloud provider, on premise might be the solution you’re looking for.

Cloud ERP Systems

Tags: ERP Software, Cloud ERP SaaS, Microsoft Dynamics AX