Enterprise Resource Planning (ERP) systems have come a long way in delivering world-class enterprise manufacturing solutions. They have become a compulsory standard for manufacturing units. An ERP system:
– Streamlines the business operations
– Integrates planning and resource allocation
ERP solutions impact every aspect of manufacturing operations. As a result, the businesses now a days are more responsive to the needs of their customers.
With the advent of technological revolution in the ERP sector, The Cloud-based and Web-based ERP solutions are the most popular and widely adopted by business owners.
This is due to the advent of technological revolution in the ERP sector. Businesses adopt ERP solution based on their requirement, budget, and scope.
Though a very thin line separates the Cloud-based and Web-based ERP, there definitely are some significant technical points of difference between the two.
The following definition will clear the clouds of doubt and confusion.
What is a Cloud-based ERP?
A Cloud-based ERP system is a full suite solution with all the necessary ERP modules, where the user pays as per the usage or a monthly fee for hardware and software used by the business.
In simpler terms, it is just like leasing the hardware and software of the vendor to avail the benefits of ERP.
A Cloud-based ERP system’s licensing model is usually subscription-based and does not provide for software ownership.
In the case of Cloud-based ERP, the software system and database reside on the vendor’s servers or at a third-party infrastructure.
The ERP system is accessed from the remote desktop connection on a computer, tablet, or mobile device internet connection.
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What is a Web-based ERP?
On the other hand, a web-based ERP system is simply providing access to the desired modules of an ERP solution or the entire ERP solution over the internet.
This is done without having any kind of hardware or software at the user’s end.
The ERP system is accessed within a web browser by HTTPS link through the username and password given by the service provider.
Location of web application and database is absolutely immaterial, as it can either be located on-premise at the company’s facility, or it may reside at vendor’s data centre.
A web-based ERP solution requires NO application or communication software to be downloaded on the local system.
Any client can access the application from anywhere, by simply following the link, like a web page.
A web-based ERP system may be sold in two ways:
- One, under a traditional software licensing model (per named user, per concurrent user, per module, etc.).
- Two, under a Cloud-based, subscription model, where monthly usage charges apply.
Web-based ERP solutions are truly flexible as they can be run from anywhere and on any internet-enabled device.
Key Points of Difference
Let’s get to know the key differences between Cloud-based and web-based ERP with the help of the following comparison table:
| Parameter | Cloud-based ERP | Web-based ERP |
| Hardware/software location | Resides on vendor’s infrastructure | Resides either on-premises or on vender’s servers |
| Mode of payment | Follows pay-per-use model/ or the monthly subscription | Its one-time payment fixed for a specific period to avail the facility |
| Cost | Extremely pocket-friendly | Depends on how many modules of application you use |
| Best suitable for | Small, medium, and even large-scale industries | Small and medium enterprises (SMEs) |
| Customization | Minor changes in basic design are possible | Possible |
| Scalable | Yes, as the business grows | Depends on the development of the application |
Cloud has been the buzzword for quite some time now, with people talking about it everywhere. So there has been confusion between Cloud-based and web-based ERP solutions.
The detailed discussion above might have helped you to understand each option better and wisely select the one that fits your business’ needs perfectly.
BatchMaster ERP is available both on Cloud and over a web application. It offers a powerful, scalable and affordable web-based Cloud ERP software built specifically for process manufacturing units.
It also has a ready-to-use, affordable-yet-simple SaaS-based model that lets you manage your business from anywhere and at any time.
For more information, contact us or visit our website and also get a chance to experience a free demo.
