Is a Cloud-Based ERP Solution Right for You?

On-Premise vs. Cloud Based: What’s the Difference?

To manage your business successfully in today’s market, industrial distributors need an Enterprise Resource Planning (ERP) solution to help streamline operations. Whether you’re already using an ERP system or searching for a new provider and want to find the best solution for your business – it’s important to know the differences between on-premise and cloud-based ERP software. Read on to learn more about each offering.

On Premise ERP Solutions

On-premise ERP solutions are known for their robustness and ability to be tailored to the specific needs of a business. This makes them a preferred choice for organizations in the industrial distribution industry. Key features include:

Installed locally on your company’s own server. Does not utilize third-party hosting.
Does not require an internet connection, allowing you to protect critical customer information offline and in your own hands.
Purchase the software license up front and pay an annual subscription service for ongoing upgrades.
Customizable solutions and integrations.

Cloud-Based ERP Solutions

Cloud-based ERP systems utilize new technologies to allow for a more flexible solution. These systems are hosted on the provider’s servers and accessed via an internet connection. Many software companies that provide ERP solutions are beginning to force their clients to migrate to a cloud-based solution. Key features include:

You pay a monthly or annual fee to access your ERP software but do not own the license.
Quick deployment time.
Hosted on a third-party vendor’s server or at a data center.
Allow your employees to access information from anywhere.
Requires an internet connection to access your software.
Standardized but lacks customization options.

Is Moving to the Cloud the Right Choice for Your Business?

While many ERP solutions are moving to the Cloud, it may not always be a beneficial move for industrial distributors – especially for smaller businesses. Keep these scenarios in mind when determining which option is best for you:

Internet outages: If you are utilizing a cloud-based solution and you or your team loses access to the internet, you get locked out of your ERP software and need to resort to keeping track of data by hand.
Data breach: Cloud-based solutions are hosted by a third-party. Many distributors don’t feel comfortable having their data in some off-site location. This is a valid concern, and before you choose any cloud provider, you need to find out more information about where they are storing your data, how it’s encrypted, who has access and how you can get it back.
Cost of ownership: While cloud solutions might seem like a cost-effective option up-front, your ten-year cost of ownership very well could end up more expensive than an on-premise solution. The Tribute team can help provide a detailed cost analysis so you can figure out which option will be better financially for your business in the long term.

For those interested in the cloud, Tribute has a version of TrulinX that utilizes a virtual machine in place of a physical server. To find out more, contact us today.

The TrulinX Difference

Whether you use an on-premise or virtual machine hosted solution, TrulinX will help you streamline your production process and reach your goals. No one knows your company better than you do and you should have a say in how your ERP solution operates. To learn more about the solutions Tribute offers with our TrulinX software, schedule a free demo today.

Our TrulinX business management platform was designed specifically for industrial distributors and fabricators that provide value-added and system integration services. Having worked with industrial distributors for more than 40 years, we’ve created a reliable, flexible ERP solution ideal for the following industries: