Should you run SAP Business One On-Premise or On Cloud?

Should you run SAP Business One On-Premise or On Cloud ?

Should you run SAP B1 On-Premise or On Cloud ?

SAP Business One is one of the mostly used SME ERP system in the world. It has an effective blend of Ease to Use and streamlined operations for any organization. But when any new organization thinks of using SAP Business One, the question that comes up in their mind is which option to use: keeping everything in-house, relying on SAP Partner who will take care of hardware requirements of the purchased SAP B1 software or use Monthly Subscription for each user offered by SAP. The question of using it is: Should you run SAP Business One On-Premise or On Cloud?

SAP Business One software can be deployed in a traditional “On Premise” environment, where your SAP hardware is all located within your own server. However, you can also use two additional “flavors” of SAP Business One using “Cloud” based technology. Firstly, you can purchase your SAP software and your SAP Partner can host the application for you in a data center. Secondly, rather than purchasing the software, you can effectively rent it on a monthly basis – SAP Business One On Demand solution.

Running an ERP solution like SAP Business One On -Premise often means putting time, money and office space towards setting up and managing an internal server – regardless of whether the resources were free and readily available.

Benefits of keeping SAP Business One On-Premise

1. Existing Infrastructure

You may have existing on-premises infrastructure in place. If an internal server is still delivering ROI, there’s not much sense in retiring it in favor of a fixed monthly fee to a third-party data center. Instead, you should only migrate when said infrastructure is up for renewal.

2. Data Compliance

Many organizations have strict compliance against Data Security by their own. These organizations do not wish to sync their critical business data such as Product Pricing, Period and Volume Discounts, Supplier Information, Product pricelists, and above all customer and their order details to any third party system. So if this is the company wide policy, then SAP Business One needs to be used as On Premise.

3. Customization and Integration

Highly Customized business flow can be better supported in SAP Business One On-Premise model as there are no restrictions in customization and if you have a really unique business scenario for which the ERP need to be customized a lot then, it’s always better to go for On-Premise model.

Also another part of this point is third party system integration. Most organizations use multiple systems to do their business along with SAP Business One, such as POS system for Physical Stores, CRM for Sales Employee, eCommerce and marketplace websites for Online Retail, 3PL software for shipment and order fulfillment. Integrating these eCommerce, POS, 3PL, CRM with SAP Business One can be best done when SAP Business One is available as On-Premise.

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Benefits of using SAP Business One Hosted/On Demand

1. Quick Return on Investment

Businesses always look for ROI. Choosing ERP is an investment for sure. So if you can get ERP and run rapidly with minimum disruption in your business, you will definitely like it more.

2. Monthly Pricing

A fixed monthly fee for software and user covers all if are using SAP Business One On Demand. Many SAP Partners also host SAP Business One in local Data Center and offer SAP Business One in monthly Per User Model.

3. No Hardware Management

No need to purchase any Server, Server Software or Firewall. Organization now a day prefers to choose Pay as you Go model and do not wish to invest time, resource and cost in Hardware.

4. Automatic Software Updates

Since SAP Business One On Demand is mostly customized to a standard level, keeping the core ERP features as it is for all customer instances and pushing software patch and version updates to the instance is quite easy. So in this way, On Demand solution can be easily upgradable than On-Premise solution.

5. Good Data Security

Data is protected in secure data centers with an array of physical and network safeguards. So though organizations are skeptical to use On Demand solutions because of Data Security as it is a proven fact that Data Security for On Demand solutions are quite good.

6. Scalability

If you are a fast growing SME, then you better choose SAP Business One On Demand/Hosted than On-Premise; because ON Demand/Hosted solution are highly scalable in terms of Hardware resources. Adding more RAM, increasing the storage size of the instance, adding more processing power, adding better internet speed; all these can be achieved with Hosted/On Demand solution more easily than SAP Business One used in On-Premise model.

7. Better Utilization of Resources

Hosted/On Demand Solution also means better use of your internal resources. By having a third-party handle monitoring, maintenance and support, you can enable your IT staff to focus on adding value to your business.

If you would like to integrate your eCommerce/Marketplace/CRM/Shipping platform with SAP Business One ERP and improve your business perfomance then, click here!

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Subhajit Goswami

Subhajit is a Business Development Professional with ability in managing Customer Accounts and Channel Business. His specific interest is in the areas of Retail Industry and eCommerce, Multichannel eRetail and ERP Systems.