Enterprise Resource Planning (ERP) systems have come a long way in delivering world-class enterprise manufacturing solutions. They have become a mandatory standard for manufacturing units, as an ERP system streamlines the business operations for companies along with integrating planning and resource allocation for improved efficiency. ERP solutions have impacted every aspect of manufacturing operations. As a result, the businesses have become more responsive to the needs of their customers.
With the advent of technological revolution in the ERP sector, the Cloud-based and web-based ERP solutions are most popular and widely adopted by business owners based on their requirements, budget, and scope. Though a very thin line separates the Cloud-based and Web-based ERP, there definitely are some significant technical points of difference between the two. The following definition will clear the clouds of doubt and confusion.
What is a Cloud-based ERP?
A Cloud-based ERP system is a full suite solution with all the necessary ERP modules, where the user pays as per the usage or a monthly fee for hardware and software used by the business. In simpler terms, it is just like leasing the hardware and software of the vendor to avail the benefits of ERP. A Cloud-based ERP system’s licensing model is usually subscription-based and does not provide for software ownership. In the case of Cloud-based ERP, the software system and database reside on the vendor’s servers or at a third party-infrastructure, and the ERP system is accessed from the remote desktop connection on a computer, tablet or mobile device internet connection.
What is a Web-based ERP?
While on the other hand, a web-based ERP system is simply providing access to the desired modules of an ERP solution or the entire ERP solution over the internet, without actually having any kind of hardware or software at the user’s end. The ERP system is accessed within a web browser by HTTPS link through the username and password given by the service provider. Location of web application and database is absolutely immaterial, as it can either be located on-premise at the company’s facility, or it may reside at vendor’s data centre. A web-based ERP solution requires NO application or communication software to be downloaded on the local system. Any client can access the application from anywhere, by simply following the link, just similar to a web page.
A web-based ERP system may be sold in two ways:
- One, under a traditional software licensing model (per named user, per concurrent user, per module, etc.).
- Two, under a Cloud-based, subscription model, where monthly usage charges apply. Web-based ERP solutions such as ERPNext are truly flexible as they can be run from anywhere and on any internet-enabled device.
Key Points of Difference
Let’s get to know the key differences between the Cloud-based and web-based ERP with the help of following comparison table:
| Parameter | Cloud-based ERP | Web-based ERP |
| Hardware/software location | Resides on vendor’s infrastructure | Resides either on-premise or on vender’s servers |
| Mode of payment | Follows pay-per-use model/ or the monthly subscription | Its one-time payment fixed for a specific period of time to avail the facility |
| Cost | Extremely pocket-friendly | Depends on how many modules of application you use |
| Best suitable for | Small, medium and even large-scale industries | Small and medium enterprises (SMEs) |
| Customization | Minor changes in basic design are possible | Possible |
| Scalable | Yes, as the business grows | Depends on the development of the application |
Cloud has been the buzzword for quite some time now, with people talking about it everywhere. So has been the confusion between Cloud-based and web-based ERP solutions. The detailed discussion above might have helped you to understand each option better and wisely select the one that fits your business’ needs perfectly.
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