What is the best choice of ERP implementation?
“Never take your eyes off cash flow. It is the lifeblood of business.”
Choosing an ERP system is important. Choosing where and how that system runs is just as important.
Your ERP holds the information your business depends on every day: customer orders, stock levels, supplier commitments, production plans, invoices, payments, employee records, and business reports. If this system is slow, unavailable, poorly maintained, or too expensive to grow with, the whole business feels the pressure.
The question is no longer simply, “Do we need an ERP?” For most growing companies, the question is: Should our ERP run in the cloud, on our own infrastructure, or in a managed environment that combines the advantages of both?
There is no universal answer. The right choice depends on your business processes, IT resources, security requirements, growth plans, and long-term budget.
What Cloud ERP Really Means
A cloud ERP runs on remote infrastructure and is accessed through a secure internet connection.
Authorised employees can work with the ERP from the office, warehouse, home, customer site, or another company location. Sales teams can check stock while visiting a customer. Managers can review business information while travelling. Warehouse users can work through mobile devices and scanners.
Cloud ERP removes the need for a company to operate all servers inside its own building. But cloud does not mean that every provider offers the same service.
Some cloud solutions are shared software platforms with fixed rules and limited customisation. Others provide dedicated or separated environments that can be configured more closely around the customer’s business. The difference matters.
Cloud is a delivery method, not a guarantee of lower cost, better security, or better functionality. The real quality depends on the provider, the hosting design, the support model, the security controls, and the way the system fits your business.
The Benefits of a Cloud-Based ERP
Cloud ERP can give companies more flexibility.
Employees with the right permissions can access the system from different locations without depending on one office server. This is especially useful for businesses with multiple warehouses, sales teams, production sites, remote workers, or field service employees.
Cloud environments can also be easier to scale. If the business adds users, locations, storage, integrations, or new modules, the technical environment can usually grow without the company needing to buy and install new physical hardware.
The provider may also manage important technical tasks such as monitoring, backups, security updates, infrastructure maintenance, and recovery procedures. This can reduce the pressure on internal IT teams and allow the business to focus more on operations.
But companies should always ask what is included. Some cloud providers charge separately for users, modules, storage, support, integrations, backups, or advanced reporting. A low starting subscription can become expensive as the company grows.
Always compare the full long-term cost, not only the first monthly price.
What Local or On-Premise ERP Means
A local or on-premise ERP runs on infrastructure controlled directly by the company. This may be a server in the company building or a dedicated environment managed by the company’s own IT team.
This model gives the business more direct control over its technical setup, data environment, update schedule, and customisation approach. It can be suitable for organisations with strong internal IT resources, strict technical policies, special security requirements, or complex integrations that need close control.
However, local ERP also creates responsibility.
The company must manage server health, backups, cybersecurity, user access, network protection, software updates, disaster recovery, storage capacity, and technical support. If something fails, the company needs people and procedures ready to respond.
Local hosting is not automatically more secure than cloud hosting. Security depends on how well the environment is designed, monitored, updated, and managed. A well-managed local environment can be very secure. A poorly maintained one can create serious risks. The same is true for cloud systems.
Managed Cloud: A Practical Middle Ground
A managed cloud ERP gives the company the convenience of cloud access without requiring it to manage the full technical environment internally.
The ERP provider or managed hosting partner operates the infrastructure. They monitor the system, manage updates, maintain backups, apply security measures, and support recovery procedures according to the agreed service level.
The business keeps control over its own data, users, processes, permissions, and business configuration. But it does not need to build a large internal IT function just to keep the ERP running.
For many growing companies, this is a strong balance.
They receive secure remote access, scalable infrastructure, professional technical support, and a more predictable operating model. At the same time, they can avoid the limits that may come with highly standardised SaaS systems.
SaaS ERP: Fast to Start, Important to Review Carefully
Software as a Service, or SaaS, is a popular cloud model.
The provider hosts the software and usually manages technical operation, updates, and standard support. The company pays a recurring subscription for access to the system.
SaaS can be attractive because it is usually quick to start. There may be less technical setup, fewer infrastructure decisions, and lower initial investment.
The important question is what happens later.
Many SaaS systems charge per user, per month. Some charge separately for advanced functions, storage, integrations, support tiers, data exports, or additional legal entities. As the company grows, the ERP cost may grow with every new employee and every new requirement.
SaaS may be the right choice for some businesses, especially those that want a highly standardised system and a simple subscription model. But companies should review the contract carefully and understand the cost over several years.
The most affordable option in year one is not always the most affordable option in year five.
Security, Backups, and Business Continuity Matter More Than the Hosting Label
Every ERP environment should be protected properly.
The company should ask how user access is managed, whether multi-factor authentication is available, how backups are created, how often they are tested, where data is stored, how quickly the system can be restored, and who is responsible when an incident occurs.
It should also ask about monitoring, updates, security patches, activity logs, data retention, and technical support.
Business continuity is especially important. If the ERP becomes unavailable, the company may be unable to process orders, receive goods, ship deliveries, create invoices, or access customer information.
A strong ERP setup includes a realistic recovery plan. This should be agreed in advance, not discussed only after a problem happens.
Choose the Model That Fits Your Business Reality
A small company with limited IT resources may benefit from a managed cloud environment. It can access a professional ERP setup without purchasing servers or hiring a large IT team.
A growing manufacturer may need a flexible system with warehouse, production, and integration capabilities that can expand as new sites, work centres, and employees are added.
A company with strict internal policies, specialist hardware, or a capable IT department may prefer a locally controlled deployment. Another company may prefer a managed local environment, where the system remains close to the business but technical maintenance is handled by specialists.
The decision should be based on practical questions.
How many users will need access now and in the future? Will employees work from several locations? Do you have internal IT resources? How important is customisation? Which external systems must connect to the ERP? What level of support do you expect? What is your realistic budget over the next three to five years?
The best ERP deployment is the one that supports your business without becoming a technical or financial burden.
The SIX ERP Approach
SIX ERP gives businesses flexibility in how they operate their system.
The platform can be provided through a managed cloud environment for businesses that want secure access, technical support, backups, maintenance, and scalability without managing infrastructure internally. It can also support local deployment where a company needs greater direct control over its environment.
The focus is not on forcing every business into one commercial model. The focus is on creating a connected business platform that fits the company’s needs.
SIX ERP brings CRM, sales, purchasing, warehouse management, production, finance, HR, service, projects, and Business Intelligence together in one system. Whether it runs in the cloud or locally, the goal remains the same: give your business reliable information, clearer processes, and more control.
Take the Next Step
Choosing cloud, local, SaaS, or managed cloud ERP does not need to be confusing.
The SIX ERP team can help you review your business processes, current IT setup, security needs, growth plans, and long-term cost expectations. We will explain the practical differences and help you choose the model that supports the way your company really works.
Book a SIX ERP consultation today. Let us help you build an ERP environment that keeps your data secure, your team connected, and your business ready for what comes next.
