April 20, 2015

Disadvantages of cloud–based ERP vs. on–premise

Summary of disadvantages of cloud-based vs on-premise ERP systems,

  • Subscription expenses (Periodic vs Capital expenditure)
  • Security risks
  • Performance risks
  • Customization and integration limitations
  • Strategic risks (high dependancy on service provider)
  • Compliance risks
  • Loss of IT competencies
  • Functionality limitations (Relatively new system)
  • Limitation on hybrid deployment strategy (retaining legacy systems and integration with on-premise solutions)
  • Service Level Agreement (SLA) issues

Reference: Duan, Jiaqi, et al. "Benefits and drawbacks of cloud-based versus traditional ERP systems." Advanced Resource Planning(2012).


- One comment Not publicly viewable

  1. Sofoklis Gkouzias

    Another interesting disadvantage that the cloud ERP providers tend to replicate is the so called “cloudwashing”. With this term the CIOs express the purposeful and sometimes deceptive attempt by a vendor to rebrand an old service by associating the word “cloud” with it.

    20 Apr 2015, 04:30


Add a comment

You are not allowed to comment on this entry as it has restricted commenting permissions.

Search this blog

April 2015

Mo Tu We Th Fr Sa Su
Mar |  Today  | May
      1 2 3 4 5
6 7 8 9 10 11 12
13 14 15 16 17 18 19
20 21 22 23 24 25 26
27 28 29 30         

Tags

Galleries

Most recent comments

  • I agree. Few companies today can grow their business by focusing on a single domestic market. Many e… by Junhua Lin on this entry
  • Hello. Thang. I am really impressed with your ideas by using 'the learning curve' to argue against s… by Peaw (peow) Kaitwatcharachai on this entry
  • Disagree with your idea about ERP starting with standardized business process. it has be identified … by Mengyun Hu on this entry
  • It seems almost impossible to achieve absolute standardization and flexibility with the implementati… by Sandhya Ramaseshan on this entry
  • BRP also play a critical role in ERP implementation. When implementation ERP system, there are two o… by on this entry

Blog archive

Loading…
Not signed in
Sign in

Powered by BlogBuilder
© MMXXI