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[Podcast] Cloud vs On-premise ERP Software

Updated: Aug 4, 2021

Season 1, Episode 1

The term "cloud" is now a standard industry buzzword and anyone who has begun the search for new business management software will undoubtedly ask what are the differences between hosting enterprise resource planning software in the cloud vs on-premise.

In today's podcast we are going to give a high level overview of the main differences between the cloud and on-premise. We'll cover such topics as price, functionality, security, upgrades, implementation, and a few other differences.

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  • Hello everybody I'm Michael Intravartolo, the Marketing Manager here at Solution Systems and I am with

  • Tom Dorth and I'm a Business Solution Specialist here. Today we are going to talk about on-premise vs. in the cloud and which way you should go.

  • Oooh, the question of the year.

  • That's right everybody is talking about the cloud.

  • The big thing kinda everybody is worried about

  • It's probably going to be the question of the next decade. So what do you like better?

  • I personally like the cloud. I think that's where the direction that everything is going towards.

  • Is that just because it's cheaper or easier to implement?

  • So some of the pros I guess you could say that I've of them being that you just get continuous updates. So you don't have to go through the update process every couple years.

  • Nice. It's kind of like your phone in that respect?

  • Exactly.

  • When an upgrade comes out you click yes, or not even click yes it would just update.

  • It would just come out without you even knowing about it honestly, some people don't like that so it can be a pro or con depending on who you are

  • I kind of like that though. It makes your life easier and it's cheaper. Who wouldn't like to save money?

  • That's right. And you don't have to go through a whole new training process because you are slowly getting out more and more updates. So it comes out piece by piece instead of all at once so you're not having to take time to learn a whole new system.

  • Before we go any further since this is Two Guys, Coffee and Business, I just wanted to let everyone know that I am drinking caffeinated coffee from Coffee Unlimited based in Chicago. Our good friend Carry Izzi has supplied it. It's very good I've got some hazelnut in it.

  • Very tasty.

  • So what's your preference, what do you like better?

  • You know I'm a cloud guy. I like the cloud. The only drawback I see to the cloud is if you are a company that works 24 hours a day and your internet goes down. What do you do? I understand...well a lot of people liken it to what if your electricity goes down? I click a generator. With the cloud it's uhh I don't know. Granted it doesn't happen that much.

  • Right you do have to have a more reliable internet access but you can also access it from anywhere.

  • Yea, and at any time.

  • You can even go down to your local starbucks and have internet there and be up and running.

  • I might as well ask you, do you think it's more secure than on-premise?

  • That's also been another big debate and nobody can seem to agree on it.

  • Really?

  • Yea, I honestly think its very secure. Microsoft has Azure, as you know. And they have been tons of money in this to make it as secure as possible. They have their own security system for it.

  • Right, like if it's good enough for a fortune 100 company it's good enough for the small or medium sized business running in your local neighborhood.

  • That's right. I feel like I'm kind of just as likely as losing that security as well. Those can get hacked and things as well.

  • Now have you heard about cloud hybrid before?

  • I have but if you'd like to go in and tell us more about it.

  • So cloud hybrid is basically just that. You can host your azure on your server at your workplace. Do I like that? I guess for security wise if you think that you are more secure than the 10 billion dollars worth of security Microsoft has then yes I like it. Otherwise, no it's just more. You have to have a server on premise, it's more upkeep for you. You have to get an IT department involved, maybe get an IT guy. It's more costly in my opinion. What do you think?

  • I agree but I kind of like it because you don't necessarily need an IT department. Your partner could have an IT department that keeps track of that.

  • Right.

  • I don't know I kind of do like that. You can access it from anywhere, it's still cloud based but you have your own eyes on it as opposed to someone else's.

  • Also, you can't blame somebody though if something happens to it.

  • That's right now it's your problem.

  • That's another thing I really like about cloud is that it's automatically backed up for you. If you lose a file you can restore it from a previous days backup or whatever schedule is setup with whoever you are backing your stuff up with. Preferably Microsoft.

  • So my question is, with all these pros for going to the cloud is on-premise going away?

  • Great question. I think so. I think there's going to be a little shift over the next couple years and a big shift to cloud over the next 5-10 years. It just makes more sense. It's simpler, easier, cheaper, more accessible. What do you think my friend?

  • I think that the hybrid hosting is going to be the next big thing. Just because it's kind of a little bit of both and I think everybody likes the whole idea of on-premise. they like the security of knowing nobody else is getting into their information.

  • I don't know I try to think of my personal life and I use Google Drive, One Drive, Evernote, I mean everything is completely cloud hosted. And with the whole Microsoft Dynamics 365 for Financials or Tenerife, whatever you want to call it at this point, it's just all simpler to me. Hopefully it breaks less than on-premise.

  • I guess that's another draw back to the cloud there may be a few update you may not like.

  • Ofcourse. Speaking of the cloud and Dynamics 365 for Financials what do you think it's going to look like in one year? Do you think it's just going to be NAV?

  • That's a great question. I'm honestly really excited to see what's going to happen. It's definitely going to be a lot like NAV but I think the whole look and feel is going to be way different. Something that we've never seen. It's going to be a lot cleaner.

  • Do you think it's going to mimic the on-premise version or do you think it's going to try and differentiate itself as a whole separate solution? Well not separate but look and feel wise.

  • I think the look and feel is going to be more similar to what you see in Dynamics 365 for Financials now. But I think that you'll have the functionality of real NAV.

  • Nice, real nice. Yea the cloud is taking over.

  • Alright, I think that's about all that I have no my friend.

  • I think we covered the majority of it.

  • Not too bad for a 15 minute little podcast.

  • I think we might want to go into cost as well.

  • Oh, that's a huge subject.

  • That's one thing we didn't touch on.

  • I guess that's what I do like about on-premise is that you can just buy it out right and...

  • Avoid all the up front IT costs

  • Right

  • Buy it, I'll give you the tenant and you can use it.

  • Agreed.

  • Which also goes hand in hand with implementation. It's a lot quicker to be able to use a cloud software than...

  • What about customizations? Customizations are a lot easier for on-premise. Cloud is suppose to be more, quicker, extension based, kind of do it yourself.

  • Yea

  • I think that's kind of where the future of it is going. It's going to be a lot easier for the user.

  • Because cloud software in general has to be multi tenant. It has to be the same basically out of the box for everyone to log in and use it. It can't be customized for each specific person because there could be millions of people using it.

  • That's right yea. I do think there is a lower long term cost in on-premise vs the cloud.

  • Even with upgrades?

  • Yes, even with the upgrades. Because you have Microsoft Enhancement's plan because it has your software upgrade added to the cost.

  • Yes, that definitely makes sense. With on-premise you'd only have to pay for someone to upgrade the software. There's a lot of benefits to the cloud, especially the extensions and the apps you can find on the internet. Log into one place and you can download it.

  • Like your phone. It's a lot like your phone.

  • Hopefully now with a cloud based software that when it's actually upgraded the extensions either upgrade automatically or let you know that it's not compatible with the software. Because with your phone in the operating systems upgrades and you go do use an app it may say you need to download the most recent version of this app to work with ios 85.94 or something.

  • And I think that's where the extensions are going to come into play and the users will have and know what to do and know how to use them.

  • It's definitely going to be interesting going forward for the next couple years. We will see, we will see.

  • Ok, that's all that I've got.

  • Do you have anything else?

  • No, I guess we can wrap it up. I'm Michael Intravartolo and this is

  • Tom Dortch.

  • For Solution Systems. So keep doing what you're doing and we'll see you next time. Also, if you like this episode of two guys hit the share button below and share it.

Questions and/or suggestions for new podcasts. In the near future (within 5 years) do you think business management software will be exclusive to the cloud and not on-premise? Also, if you'd like for us to talk about anything specific to business and business management solutions let us know by leaving your message in the below comments.

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