SAP Business One On-Premise VS On Cloud
SAP Business One is one of the most used small and midsize enterprise ERP systems. It is easy to use and provides streamlined operations for any organization. However, when new organizations think of using SAP B1, the one question that pops in their mind is “Should I run SAP Business One On Cloud or On-Premise?”.This blog will help you decide which one to choose.
SAP Business One helps in the standardization and streamlining of processes across the organization, easy access allows improved visibility and informed decision making. You do not need to put in the large investment of capital as required by the on-premise SAP Business One implementation. With the help of the cloud, you can have ERP software deployed across the organization quickly. Implementation would involve hardware, software licenses, database licenses, external implementation consultants who will look into the technicalities of installation and providing the training to the staff. The three types of licensing would include
- Perpetual Software licensing with on-premise server
- Perpetual SAP software licensing with private cloud hosting
- Perpetual SAP software licensing with public cloud hosting
Benefits of SAP B1 On-Premise:
Infrastructure: If an internal server is delivering ROI, it is not sensible to retire it in favor of a fixed monthly fee to a third-party data center, rather you must only switch when said infrastructure is up for renewal.
Data Compliance: Many companies have strict compliance against Data Security on their own. These companies do not wish to sync their important business data to any third-party system. For companies like these, SAP Business should be used On-Premise.
Integration & Customization: SAP Business One On-Premise supports highly customized business flow as there are not many restrictions in customization. Even for unique business scenarios in which the ERP needs to be customized more than usual, and On-premise model is recommended
Benefits of SAP B1 On Cloud:
Quick Return on Investment: Any business needs ROI and choosing an ERP is like an investment. So if you’re looking for an ERP that runs rapidly with minimum disruption in your business, SAP B1 On-Cloud is the one.
Monthly Pricing: SAP Business One covers a set monthly fee for the software. Many SAP Partners offer monthly per user’s head and SAP Business One in the local data center
No Hardware Management: Purchasing a Server, Server Software, or FIrewall is not mandatory. Companies, today, prefer to choose ‘Pay as you Gp’ model and do not wish to invest time, resource and cost on Hardware
Automatic Software Updates: As SAP Business One On-Cloud is mostly customized to a standard level, keeping the core ERP feature the same for all customer instances and version updates is quite easy. The on-Cloud solution can be easily upgraded than the On-Premise solution.
Secured Good Data: Data is protected in secure data centers with an arrangement of physical and network safeguards. IT is a proven fact that Data Security for On-Cloud is good enough.
Scalability: SAP Business One On-Cloud is majorly recommended to fast-growing SMEs than SAP Business One On-Premise as On-Cloud solutions are highly scalable in terms of Hardware resources. Adding more RAM, processing power and better internet speed increases the storage size of the other instances and can be achieved by SAP B1 On-Cloud
SAP Business One is one of the most used small and midsize enterprise ERP systems. It is easy to use and provides streamlined operations for any organisation. However, when new organisations think of using SAP B1, the one question that pops in their mind is “Should I run SAP Business One On CLoud or On-Premise?” .This blog will help you decide which one to choose.
Some of the FAQ’s are
1). What is the difference between the private cloud hosting and public cloud hosting?
Private cloud hosting
The complete management, maintenance, data backups, security, failover is managed by your company’s IT team or a third-party managed service provider deputed by the company. Under the Private Cloud Hosting, you engage with a company to host your SAP infrastructure, i.e. the infrastructure instead of lying in your office premises will be hosted in a data center either locally or abroad as per the company’s decision.
Public cloud hosting
The main differentiation between public and private cloud is that you aren’t responsible for any of the management of a public cloud hosting solution. SAP Application and data is stored in the provider’s data center and the provider is responsible for the management and maintenance of the data center
2). Is Cloud solution stable and secure?
This depends on the company you engage with for hosting services/cloud solutions. Hiring vendors who purchase and host your application in their own premises might seem like a low-cost solution but it does not offer the security that a data center does. A modern data center service provider ensures ‘high availability’ for your applications
3). Is the On-Premise Solution faster than the on-cloud solution?
Applications that run locally on the server in your office will be faster than a cloud solution. The processing of most functions on the ERP application is handled in the processor of the computer and not on the user device. The retrieving or refreshing of the data may affect the response time. The growing technology trends will only boost the connectivity speed in the coming years.
4). What is more cost effective of all the 3 options?
Compared to On-Premise and Private cloud option, Public Cloud seems to be the most cost-effective and easily manageable. It is a readily available infrastructure that relieves the company from the stress of server management.