Determining the Best ERP Hosting Model for Your Company

Companies searching for manufacturing ERP solutions today are faced with more options than ever before. While this allows consumers opportunities to find powerful, affordable ERP systems that better match their needs, it also can cause confusion. Misappropriation of industry buzzwords is a reason why cloud ERP solutions vary drastically from vendor to vendor. To understand the distinctions between products, whether it’s SaaS ERP to cloud ERP, we need to look at how ERP solutions are hosted.

True SaaS ERP software is multi-tenant, meaning that there are multiple secure and distinct environments hosted on a server. Multi-tenant hosting allows for a drastic reduction in cost, increased flexibility and scalability, and easy remote access to the system. The future of ERP applications trends toward multi-tenant hosting, making SaaS ERP solutions the best fit for companies wanting to benefit from modern technology. While most cloud ERP solutions are multi-tenant, it is also possible to host a single dedicated with a cloud provider like Amazon or Rackspace. A dedicated cloud ERP instance will not provide the same savings as multi-tenant, and flexibility for updates and accessibility may also be impacted– the best cloud ERP system will depend on the needs and priorities of the company. Some companies may prefer a locally hosted dedicated instance, with a server on site. With a local server and dedicated instance, the ERP total cost of ownership increases significantly, updates may be less regular, and remote accessibility is reduced to server networks. Depending on the size of the company and industry regulations, this model may be preferred.

At Cetec ERP, we understand that companies are impacted differently by the benefits and drawbacks of cloud-based versus traditional erp systems, so we are flexible about how our solution is hosted. While multi-tenant is our default hosting option due to the increased efficiency of cloud ERP implementation, we provide custom ERP solutions for companies who wish to host their Cetec ERP instance on a dedicated cloud instance or local server. Overall, about ⅔ of our customers choose the multi-tenant model. Our in-house experts are ready to discuss how Cetec ERP can help your business find the best solution for your processes and priorities.