Choosing the right ERP (Enterprise Resource Planning) system is a critical step in running a more efficient, connected business—but one of the biggest decisions you’ll face is whether to go with a cloud-based ERP, a traditional on-premises ERP, or a hosted ERP solution.
If you’re not sure what the difference is—or why it matters—this guide is for you.
What is Cloud ERP?
A cloud-based ERP system is hosted online by a software provider and accessed through a web browser. It runs on a subscription model (usually monthly or yearly), and updates, backups, and maintenance are handled by the vendor.
What is On-Premise ERP?
An on-premise ERP system is installed locally on your company’s own servers and managed by your internal IT team. It typically requires a larger upfront investment in hardware and infrastructure.
What is Hosted ERP?
Hosted ERP is a hybrid of the two—your system is installed on external servers managed by a third-party hosting provider. You retain ownership of the system but avoid the burden of maintaining on-site infrastructure.
Key Differences: Cloud ERP vs. On-Premise ERP vs. Hosted ERP
|
Feature |
Cloud ERP |
On-Premise ERP |
Hosted ERP |
|
Deployment |
Hosted by the vendor, accessed online |
Installed on company servers |
Installed on third-party servers |
|
Cost |
Subscription-based, lower upfront cost |
Larger upfront investment |
Varies (hosting + licensing) |
|
Maintenance |
Handled by vendor |
Handled by internal IT |
Handled by hosting provider/managed by internal IT |
|
Scalability |
Easily scalable |
Requires infrastructure changes |
Scalable, depends on host |
|
Accessibility |
Accessible anywhere with internet |
Office network or VPN required |
Remote access via host |
|
Updates |
Automatic and frequent |
Manual, less frequent |
Manual, less frequent |
|
Security |
Managed by cloud provider with enterprise-grade protections |
Responsibility of in-house IT |
Shared responsibility with host |
Which One is Right for You?
There’s no one-size-fits-all answer. Cloud ERP is great for businesses that want flexibility, faster implementation, and lower IT overhead. On-premise ERP works best for organizations with strict control requirements. Hosted ERP offers a middle ground—ownership with outsourced infrastructure.
Where Infor ERP Fits In
Infor offers all three deployment options—cloud, hosted, and on-premise—so you can choose the model that aligns with your business needs. Whether you’re in manufacturing, rental, service, or construction, Infor CloudSuite solutions deliver the same powerful, industry-specific functionality across every deployment type.
Understanding the difference between cloud, on-premise, and hosted ERP is the first step in choosing the right platform for your business.
In our next blog, we’ll explore why so many companies are moving to the cloud—and what it means for your business.