SAP on Cloud or on Premises

ERP: Hosted, Cloud, Self run, On Premise, what are they and which is better?

MTC (麦汇) New Zealand offers its customer full range of options in deploying SAP Business One ERP. Understand the difference between cloud, hosted, on premises, shared.

When we talk about ERP or other business applications, you may often heard these terms: hosted, cloud, on premise. So what are they and the most important question – which is better or more suitable to me?

Let’s look at them one by one.

What is On Premise?

The more correct term is on premises, which usually means the computer hardware physically sits in your site, you may purchase it from vendor, or rent it for long term.

What is Cloud?

On the contrary cloud ERP means served via internet and it can be accessed by users online regardless of the time and their location.

Do I need manage SAP Business One On Premises server by myself?

The short answer is not necessary. You don’t even need to have server in your house.
Thanks to modern technology and innovation of business model we can have PaaS (Platform as a Service) or IaaS (Infrastructure as a Service) in addition to SaaS (Software as a Service). The core concept of “as a Service” is that you don’t own it, instead you pay rental fee to use them. If the landlord will, he can offer rental property under the term “House as a Service”, which seems similar to Airbnb.

What’s the advantage of SAP Business One ERP On Premises?

The answer will be surprising: you save money on the long run. Just like renting a property vs. purchasing one, in the long run purchasing will be the better option. And yes you own SAP Business One license if you purchase it instead of rent it. Contact us for more details

What’s the advantage of SAP Business One ERP Cloud?

SAP Business One Cloud offers you competitive monthly price to own a full stack ERP suite. If low upfront cost is preferred this model will be perfect to choose. In addition to that it offers flexible shift in quantity and user type, so if downsize happens that can be easily supported.

What is hosted SAP Business One On Premises?

Just as mentioned you can purchase SAP license and run on a server on the cloud. It can be a local tele provider’s data center, or AWS, Azure’s instances.

There are several cloud hosting scenarios:

Dedicated Hosting

Dedicated hosting allows you to lease your own individual server from the hosting company. It’s all yours. In this way, you can lease the bandwidth you need to handle your requirements for storage, speed, and performance.

Dedicated hosting is more expensive than the other hosting options, which is its biggest drawback. However, your ERP is the very lifeblood of your business. There’s no room for corner cutting or skimping.

Shared Hosting

The standard definition of shared hosting is that it is “web hosting in which the service provider serves pages for multiple websites, each having its own Internet domain name, from a single Web server.” When applied to your ERP environment, shared hosting puts your business’s very backbone (your ERP) on a shared server.

It has one principle advantage, and that is cost. Shared hosting will cost you much less.

It also has one principle disadvantage: flexibility. You won’t be able to have some SAP customized add-on which doesn’t support share mode.

Multi-tenant Hosting

The last option of the three is multi-tenant hosting. It actually uses virtualization to allow you own an independent system environment. You can enjoy full flexibility, build hybrid solutions based on SAP Business One ERP, and more.

MTC New Zealand offers its customer full range of options in deploying SAP Business One ERP.

You may contact us to discuss details of your unique business requirement.