These days, organizations in the market for manufacturing ERP software must choose between on-premise solutions and cloud-based alternatives. Though the latter are gaining traction in multiple sectors, traditional on-site server-based ERPs still offer many benefits. With this in mind, be sure to consider all of the variables before selecting your platform.

Cost
Many chief information officers gravitate toward cloud-based ERP manufacturing software in an effort to cut costs. According to many industry experts, these business leaders are correct in thinking that server-less solutions will save them money. Cloud-based ERP platforms are cheaper to develop and deploy than their on-premise counterparts, Software Advice reported.

Plus, most are subscription-based, meaning companies can scale back should they so choose. However, in many cases, organizations with cloud ERPs end up spending just as much money as they would on an on-premise solution over the lifespan of their products, as subscription fees and data demands often change.

Of course, many offset these expenditures by cutting costs usually associated with maintaining on-premise solutions, ERP Software blog reported. For instance, once physical servers are out of the equation, organizations no longer have perform costly maintenance or reserve office space for on-site data centers. Additionally, most cloud-based ERP vendors provide backup services, meaning unforeseen periods of downtime and catastrophic server failures carry fewer financial consequences.

However, as you look over your options, avoid basing your decision entirely on money-saving potential. Instead, look for the system that works best for you and gives your organization the tools and insights it needs to grow.

Deployment
Projected implementation times weigh heavy on the minds of executives looking into ERP options. Organizations in need of such software are hungry for change and often want to get a solution in place as quickly as possible. When it comes to deployment, cloud-based ERPs are much easier to install than on-premise solutions. The average cloud ERP platform takes 4 to 8 months to implement, according to PricewaterhouseCoopers. Conversely, implementation periods for traditional on-site solutions can be as long as 36 months.

Of course, cloud implementations feature some complicating factors. For example, cloud-based manufacturing ERP software is standardized to some extent, meaning adopters must reshape their business processes to account for these solutions. On-premise platforms are more customizable, allowing businesses to stick with their original workflows and develop a system that complements them.

Scalability
In today's mercurial business world, enterprises must have the tools to weather trends and changes in consumer behavior. This goes doubly for manufacturers, many of which already contend with wafer-thin margins. When it comes to scalability, on-premise solutions are no match for cloud-based ERP software. These solutions can evolve to match business needs.

If increased market demand necessitates more processing power and storage space, vendors can scale up to accommodate these shifts. And, once busy season dies down, things return to normal. 

For growing enterprises, this capability is especially enticing, as they can implement manufacturing ERP software that serves their current needs but can expand as they do. Augmenting an on-premise solutions is no easy task. The process takes time and requires substantial reinvestment. 

Security
CIOs in every sector balk at the prospect of implementing cloud-based ERPs for fear of suffering crippling data breaches. In reality, these systems are just as secure as on-premise platforms, TechTarget reported. Vendors offer robust data encryption services and employ security experts that monitor for new threats and code and apply system patches to address them. In the end, both solutions offer put up effective defenses against hackers.

With these variables in mind, carefully consider your options and choose the solution that works for your enterprise.