Once a company decides on ERP, the next question is where it should run. There are three common hosting models, and each makes a different trade-off between control, security effort and cost. This is how we explain them to clients.
Shared cloud
The ERP runs on infrastructure shared with other customers, with each company’s data kept separate. It is the fastest and most affordable option, with updates and backups handled by the provider. It suits most small and mid-sized businesses without special data rules.
Dedicated cloud
Your ERP runs on its own cloud servers. You get more control over performance, maintenance windows, custom integrations and access rules, while the provider still manages the infrastructure. Larger companies and groups with heavy customisation often choose this.
On-premises
The ERP runs on servers in your own office or data centre. You control everything, including physical access, but you also carry responsibility for hardware, backups, security patches and disaster recovery.
Security questions to ask of any model
- Is data encrypted in transit and at rest?
- Who can access the servers, and is access logged?
- How often are backups taken, and are restores tested?
- How quickly are security updates applied?
Compliance and audits
Banks, healthcare providers and exporters supplying international brands may face audits about data handling. We document where data is stored, who can access it and how it is protected, so audit questions can be answered quickly.
Cost over time
Shared cloud has the lowest upfront cost; on-premises has the highest. Over five years the gap narrows or widens depending on staff time, hardware refresh and downtime risk. We model these costs for your situation before recommending a model.
Frequently asked questions
Can we start on shared cloud and move to dedicated later?
Yes. Moving between models is a planned migration rather than a rebuild.
Related reading
For the product view of this topic, read Shared Cloud, Dedicated Cloud or On-Premises ERP? on the Reckon ERP blog.
Planning a project? Book a free consultation with our team, or see our IT consultancy service.
