Cloud-based ERP vs Web-based ERP. What are the key differences?

Differences Between Cloud-Based ERP and Web-Based ERP: What You Need to Know Enterprise Resource Planning systems make business operations more integrated by planning and allocating resources into one centralised place. It also streamlines operations and makes businesses more responsive towards the likeness and needs of the customers. Over the years, cloud-based ERP and web-based ERP have been used in most businesses, depending on their scope, budget and requirements. Below are the key factors that distinguish a cloud-based from a web-based system.

Five key differences between cloud-based and web-based ERP system


Typically, web-based ERP systems require large upfront and ongoing investments to procure and manage servers, software, and the related hardware and facilities essential to running the system successfully. Unfortunately, if your business lacks experienced staff, you will be forced to invest more money and time in extra personnel training programs for them. Also, it requires your IT team to create a significant amount of time and budget to have your system up and running when you need it.

For cloud-based ERP, initial costs are generally much lower since you will implement the software according to your requirements and access it easily through your computer’s internet. This software ensures that the system is always on the run, secures the data, hosts and maintains the entire IT underlying base for you. Also, your product upgrades are rolled out easily to your business management solutions without altering your previous implemented customisations. This system allows your IT human resource to have enough time to concentrate more on innovating and growing the business more efficiently and effectively rather than spending most of their time managing and maintaining your web cloud systems.

Security and ownership

In the case of web-based software, the company restraints data security and controls. However, sometimes it leads to malicious attacks due to a lack of implementing adept data security supervisions and protocols. In a cloud-based system, data can be accessed through an internet connection since it is hosted on the vendor’s cloud. To ensure the data is secure, companies opt for encryption methods to improve security. Your company will now be in a secured working environment since the cloud service provider will automatically upgrade your system.

Performance and accessibility

Cloud system often performs better than web cloud system. Cloud software maximises its network performance since its architecture is designed from the ground. Cloud-based ERP offers an outstanding performance that can easily suit your needs. If there is a rise in the business, cloud software automatically adjusts to the change and dynamically provisions additional essentials to manage the surge. A cloud-based ERP usually provides real-time data that can be easily accessed using the internet connection from anywhere at any time. That means that your staff can access information on their portable devices from any place using the internet.

Systems upgrades and enhancements

Normally, business management software can be customised and linked to your current software deployments, which are not easy to re-install with modern versions. As your software comes up with new system upgrades and enhancements, your previous customisations will be erased when you bring in new product upgrades, forcing your IT team to start customising from scratch again. On web-based software, companies avoid upgrading their software and continue with their old technology to run their businesses. As for the cloud-based system, you can always use the latest technology version of your software because the provider continually upgrades them.


A business management software deployment usually takes adequate time and requires careful planning. On the other hand, cloud-based software provides clear positive results when you consider the speed of deployment. It doesn’t require any additional hardware to save on time installing IT and procuring infrastructure. Having this capability, you can easily roll it out across various subsidiaries, regions and divisions and save on costs associated with those rollouts. Web-based software doesn’t offer the same as cloud-based since many employees can’t access the system and require additional hardware.

Parting words

The above are the top 5 main differences between cloud-based and web-based systems that can help one select the software type that best suits their company. The cloud-based system has become more popular in many organisations with more business growth and effective automation in recent times. The two systems may sound the same when discussed as they share some similarities, but they have a huge difference to your business management solutions.

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