When thinking about implementing an ERP system, remember that this is an important strategic step, an investment in the development of any enterprise. In addition to the cost of equipment and software licenses, the company will have to pay for user training, obtaining service packs, maintenance, and technical support for the system developer.
The implementation of a corporate ERP system should not be based on the question of money. Free ERP software will not solve the issue of high costs — quite the opposite. No one is responsible for the work of a free app, it cannot be adapted to changes — an increase in the volume of processed data, changes in legislation and regulatory documents, etc. Sooner or later, you will have to start using a commercial ERP system that is developed and supported by professionals.
Before switching to another ERP, you will need to extract and move all data from existing systems that your company uses. Sometimes it is impossible because this feature was not provided by the developers, or it will require a lot of work due to the mismatch of data formats, the need for training employees, and the search for integration tools. This is why we recommend choosing proprietary software for your ERP system right from the start. When choosing a vendor of ERP products, you should analyze its project portfolio, learn best practices, find customer reviews, so on. Operating experience of ERP shows that the best solution for each enterprise is always individual, and needs to be selected based on the business specifics, scaling, organizational structure, periods of peak loads, localization, and many other factors.
It is much easier to save your budget on the computing platform for your ERP system. In the current environment, investing in on-premises infrastructure is not a cost-efficient option. The concept of viable corporate IT costs is moving from CapEx to OpEx, which is enabled by renting an infrastructure solution from a provider. Moreover, the provider has enough capabilities to offer you the best quality equipment and experienced support engineers.
You can learn more about ERP system components and architecture, its basic principles, and why the cloud is the best place to deploy an ERP, by reading our article «Why is the cloud the best environment for an ERP system?».
What kind of infrastructural solution is better for deploying an ERP — a dedicated server, VDS, or a cloud? The answer always depends on the individual case. In some cases, it is reasonable to rent a scalable cloud infrastructure; in others, it is enough to rent a dedicated server (either VDS or physical) in a remote data center. You can also use colocation to place your ERP server in the provider’s remote data center.
When choosing the best platform to deploy your ERP system, keep in mind the data presented in a study by AMI-Partners: after moving ERP from on-premises servers to the cloud, businesses reduced their spending by an average of 30%, while its income increased by 35%. Whatever your choice, it is better to delegate non-core maintenance tasks to the provider's experts. This way, your employees can focus on achieving the strategic goals of the business.