Differences Between On-Premise and Cloud-Based ERP Software

November 25, 2020 | News

Acumcatic cloud erpjpg

What is Cloud-Based ERP Software?

Enterprise Resource Planning software, or ERP software, is one type of business management software used by companies to collect, store, manage, and interpret data collected from the various business activities of the company. ERP software takes all of the data produced by the different departments in a company and integrates the data in order to provide the information needed to efficiently manufacture, deliver, and keep track of customer orders.

In recent years, the use of ERP software has expanded for business intelligence (BI) and customer relationship management (CRM).

Traditionally, ERP software has been operated by companies on-premise, on company infrastructure. However, increasingly, companies have been moving to cloud-based ERP software in order to lower up-front costs and the need to manage complicated infrastructure.

With cloud-based ERP software, the ERP software vendor is responsible for the servers, databases, and other infrastructure necessary to keep the ERP software functioning properly.

Acumatica is an industry leader in cloud-based ERP solutions who specializes in manufacturing management systems.

Benefits of Cloud-Based ERP Software

Access to real-time data

With cloud-based ERP software, employees, contractors, and outside vendors can access vital company data in real-time on any laptop, phone, or tablet with an Internet connection. This is not always possible with on-premise ERP software.


Unlike a company using ERP software on-premise, a company using cloud-based ERP software does not need to worry about scaling up infrastructure to accommodate company growth. The vendor of the cloud-based ERP software takes on full responsibility for ensuring the ERP software is running on infrastructure with sufficient capacity to scale.


Because cloud-based ERP software is hosted in the cloud and not on the company premises, there is no need to transfer over any physical hardware to a new location should the company ever relocate. Cloud-based ERP software can be accessed from anywhere on the globe regardless of where software is being accessed from.

Differences Between On-Premise and Cloud-Based ERP Software

Both cloud-based and on-premise ERP software transform data generated by the business activities of a company into information useful for operating efficiently.

With cloud-based ERP software, as opposed to on-premise ERP software:

  • Updating ERP software is the responsibility of the software vendor. With ERP software on-premise, the IT department of the company bears the burden of making sure the ERP software is kept up to date.

  • The vendor takes care of managing security, backups, and disaster recovery so that the company IT department can concentrate on more important and pressing issues.

  • Implementation of the ERP software is more rapid and less costly since there is no need for up-front investment in enterprise-grade servers, operating systems, and other hardware and software.

  • With a cloud-based ERP solution, all data produced by the company can be stored in a single database and all information can be reported on a single interface.

Why are Companies Moving to Cloud-Based ERP Software?

Simply put: using cloud-based ERP software, as opposed to using on-premise ERP software, enables companies to focus on what the company actually does, rather than having to deal with the IT administrative overhead of maintaining on-premise ERP software

How Can Pinnacle Improve Your Business with Cloud-Based ERP Software?

Pinnacle has been in business for over 25 years. Over that time, Pinnacle has successfully implemented and supported software solutions for over 1,000 customers, ranging from the implementation of simple accounting and finance software to the implementation of cloud-based ERP solutions to manage entire businesses.

With its highly-experienced support team, implementation team, and project management team, Pinnacle can develop software solutions to suit the business needs of companies of all sizes and industries.

Pinnacle takes the time to thoroughly understand the problems its customers face in order to develop appropriate solutions and makes sure its customers get the most out of their software solutions.

Pinnacle is an Acumatica Gold Partner and is fully-accredited to implement Acumatica Cloud ERP Solutions to transform your company to thrive in this dynamic digital economy. Contact Pinnacle today to learn more about cloud-based ERP.

Talk to a Pinnacle expert today

Our knowledge and experience is just a phone call away

Contact Us

CALL US 0843 453 0103

Request a Callback

Request a Callback

By submitting your email address, you agree to receive updates from Pinnacle in accordance with our Privacy Policy. Unsubscribe at any time.