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Cloud Based ERP vs. Web-Based ERP – What’s the Difference?

by admin

During the ERP selection process, we are asked by nearly every potential new customer if Enterprise 21 ERP is a cloud-based ERP system. When we tell our potential new customers that Enterprise 21 ERP can be accessed from anywhere in the world with an Internet connection, businesses immediately assume that Enterprise 21 ERP is a cloud-based system and that they do not have the ability to have the system installed on their own hardware and infrastructure should they desire to do so. These businesses, however, are incorrect. With Enterprise 21 ERP, businesses can choose whether or not they wish to have the system installed on their own hardware and infrastructure or installed in a data center in which the infrastructure to support the ERP system is managed for them by a third-party. Read More…

Enterprise 21 ERP is a web-based ERP system, not a cloud-based ERP system. What is the difference?

What is a cloud-based ERP?

A cloud-based ERP system, at least by our definition, is an ERP solution in which the business pays a per user, per month fee for hardware and software – it is effectively a lease on hardware and software. The software system and database reside on the software vendor’s (or some third-party’s) infrastructure, and the software system is typically accessed from within a web browser. A cloud-based ERP system’s licensing model is usually subscription-based and does not provide for software ownership (although there are exceptions to this general rule). Please click here for a great definition of “cloud-based.”

What is a web-based ERP?

A web-based ERP system, on the other hand, is simply an ERP solution that is delivered over the Internet, and the system is accessed within a web browser. The web application and database may be located on-premise at the company’s facility, or it may reside in a third-party data center. A web-based ERP system may be sold to a business under a traditional software licensing model (per named user, per concurrent user, per module, etc.), or it may be sold under a cloud-based, subscription model. Please click here for a great definition of “web-based.”

With Enterprise 21 ERP, there is no subscription licensing model available; rather, Enterprise 21 ERP is a web-based ERP application that is sold on a concurrent user basis as an integrated whole. Our customers, then, have three options at their disposal: 1) purchase software licenses and have the system and database deployed on their own hardware and infrastructure; 2) purchase software licenses and utilize TGI’s hosting services to host the application and database for them for an additional per user, per month fee; and 3) purchase software licenses and contract with any third-party hosting provider they are comfortable working with.

The keys are that in any of the three options noted above, our customers do not need to pay a recurring licensing fee, have 100% flexibility and control over where their data resides, and can access 100% of their business data in real-time from anywhere in the world with an Internet connection.

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