Comparison of On-Premise, Hosted and Cloud ERP Systems

Table of Contents
Introduction...............................................................................................................................................2
Problem Statement......................................................................................................................................3
Description of the Report..........................................................................................................................4
On-premise ERP systems..........................................................................................................................6
Advantages of an ON Premise ERP system.............................................................................................6
Comparison and Contrast between Cloud ERP systems and the On premises (Pros and Cons)...............6
Comparison in terms of Pros............................................................................................................7
Comparison in terms of cons..........................................................................................................10
Cloud ERP system...................................................................................................................................11
Hosted ERP systems................................................................................................................................14
Case Study is Cadbury Company...........................................................................................................14
Hershey’s Company............................................................................................................................15
Summary..................................................................................................................................................15
Conclusion................................................................................................................................................16
List of References....................................................................................................................................17
Content of Figures
Figure 1 APICS figure explanation of ERP system.....................................................................................4
Figure 2 overview of the ERP system..........................................................................................................5
Figure 3 IaaS image...................................................................................................................................11
Figure 4 Platform as a Service (PaaS).......................................................................................................12
Figure 5Software as a Service (SaaS)........................................................................................................13

Introduction
Enterprise resource systems has been used so widely in the current technology and this has
influenced so many people when it comes to defining the type of storage they want to. The urge
to migrate from the traditional methods has made many organizations to shift their way of doing
things in to the modern ones. ERP has been widely used by individuals and organizations. ERP
are systems and software’s that are used as packages by many organizations in managing the day
to day activities of the business such as procurement, accounting, project management and the
process as manufacturing. Enterprise resource systems have tied together by defining the
plethora of all the processes of the business by enabling the data to flow in between them. When
using ERP, there is a collection of the organization transactional data that is shared from multiple
sources and thus Enterprise resource systems has been used for eliminating data duplication and
offering provision for data integrity. Enterprise Resource Planning systems in the current era, has
been so critical when managing the small, large and the medium enterprises across all the
industries in the business.
Enterprise resource Planning system can be defined as the business process which is kind of a
management software that has allowed organization in using a system of applications which are
integrated in managing their business, it has thus automated the many functions at the back office
in relation to the technology, the services offered and the human resources (Beal, 2014). ERP has
been considered as an application kind “Enterprise Application” which has been designed to be
used in businesses which may be large or even small and thus may require teams which are
dedicated in customizing, analyzing the data and handling of upgrades and deployments. ERP
systems or software’s has consisted of multiple enterprise software’s modules which one must
purchase one in particular on the basis of the specific needs to be met and technical capability of
the respective organization (ERPs, 2017). There are so many modules that may exist in any
given ERP system and thus they work as a team. Some of the modules of ERP are such as:
Distributing the process management
The management on the supply chain
Servicing the knowledge base
Configuration of prices
Improving of accuracy on financial data

Facilitation of better project planning
Automating the employee lifecycles
Standardizing the critical procedures in the business
Reducing the redundant tasks
Assessing the business needs
Applications in the finance and accounting departments
The Low cost of purchasing
Managing the payrolls & the human resources
The business value of the ERP has impacted the world of business today. When an ERP systems
is applied in the business the data of the enterprise and all the processes will be corralled in to the
Enterprise Resource Planning system, thus making the business to be able to align separate
departments and improving the flow of work which may result to increase in productivity
(Oracle, 2017). Some of the general benefits a business may have when an ERP system is put in
place are such as the following.
There will be improved insight in the business.
The cost of operational are relatively low
Collaboration will be enhanced
The efficiency will be improved greatly
There will be consistency in the infrastructures used.
The will be increased rates of user-adoption
The risks will be decreased
Relatively lower cost of operation and management
Problem Statement
The main reason for this report is to discuss the three Enterprise Resource Planning systems. The
three are such as the On-premise, Hosted and the cloud ERP systems. The idea behind all these
is to explain all the topics on each one of them , the associated benefits, risks and some of the
challenges they face in cases where company may opt to use them. The idea here is on the basis
of the case studies from the experience learnt from different companies as they interact with the

ERP system. The other problem to be discussed with reference to these is explanation of the
comparison, contrast and much more how they relate in general.
Description of the Report
There are many ways through which Enterprise resource planning systems can be defined.
According to the APICS ERP system can be defined as the accounting oriented IS used to
identify and plan the enterprise wide resources used in shipping and accounting the customer
orders. They are systems that always aims to integrate the functional units of the business in the
way to become more cooperative. ERP systems has extended its services by including the
functions of the outsiders. This has made it to be so reliable and much easier to interact with. The
following example clearly shows the application of an ERP system according to APICS.
Figure 1 APICS figure explanation of ERP system
Source (AIPCS, 2011)
The use of ERP systems in the organization’s infrastructures has been a very key idea in
delivering the solutions to major business functionalities that can be handled by a given
organization. In defining ERP system comprehensively, it can be referred to as a kind of a