4 Common Misconceptions Around Choosing an ERP Deployment Model

A number of misconceptions exist around different ERP deployment models that distract an organization from properly choosing the ERP solution that is best suited for their needs. These common misconceptions can lead to overspending, loss of data accessibility, limited functionality, surprise costs, and decreased business agility.

To help you improve your ERP selection process, we are clarifying the top four common misconceptions to consider when choosing an ERP deployment model:

Misconception 1:

“Upgrades are seamless at no additional cost with a public cloud (SaaS) ERP.”

Reality:

An organization still has to do testing and train on new functionality before moving to an upgraded version within the public cloud. Often times, customers will require consulting services to help them test and implement new functionality. Many SaaS cloud ERP vendors fail to mention this fact, and instead, focus on the elimination of time needed to physically upgrade software which removes a very minimal amount of the cost.

Some ERP vendors charge up to 30% of the annual SaaS fee to provide a sandbox testing environment which allows you to test your specific implementation, customizations, and integrations. The steps, effort, and cost of upgrading on-premise, private cloud, or SaaS (multi-tenant cloud) deployments are all the same. The cloud simply means your ERP solution is running on someone else’s hardware; it’s still software!

Misconception 2:

“All ERP software is basically the same; I just need to know that I can run it in the cloud.”

Reality:

Each ERP solution has its own set of benefits and features, some being more appropriate for certain industries over others. The biggest strengths of SAP Business One are the depth of functionality, flexibility, adaptability and it can be deployed on-premise or in the cloud.

Learn more: Cloud ERP Deployment VS. On-Premise Deployment Options: Pros And Cons

Misconception 3:

“When my ERP is deployed in the cloud, our company owns the data, and we can easily download all of it anytime, at no additional cost.”

Reality:

Some cloud ERP vendors are notorious for holding a company’s data hostage. They make it very difficult and expensive to extract your data which makes it painful to leave their ERP solution while subjecting you to excessive price increases. With Third Wave Business Systems and SAP Business One, you will own your data and have unlimited access to your data whether the solution is deployed on-premise or in the cloud.

Misconception 4:

“On-premise deployment always means higher costs.”

Reality:

This is a complex topic, with many factors affecting whether or not an on-premise deployment has higher costs versus a cloud deployment. Focusing on the 10 Year Total Cost of Ownership provides a clearer evaluation of costs associated with each of the ERP solutions being evaluated. SaaS Cloud ERP solutions generally have a significantly higher 10 Year TCO than the other deployment options.

In conclusion, choosing your ERP deployment model also requires careful consideration into which ERP system you choose to implement and whom you choose to deploy your solution with.

Get Expert Help Choosing Your ERP Deployment Model

SAP is the world leader in ERP software and SAP Business One is a highly recommended solution for both on-premise and cloud ERP deployment. By working with an experienced SAP Business One Partner, like Third Wave Business Systems, organizations gain unbiased recommendations on ERP deployment models that match their business needs. Companies also gain the option to securely migrate between cloud and on-premise deployments options because what works for a growing business currently may not work in the future.

Third Wave Business Systems is an SAP Gold Partner, as well as North America’s longest-standing SAP Business One partner. Businesses trust our experts to implement ERP solutions for both on-premise and cloud deployment models by providing in-depth industry expertise every step of the way.

To learn more about choosing the right ERP deployment method for your business, schedule a customized demo with a Third Wave expert today.