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What are the types of ERP Deployment?

ERP deployment - erp
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Summary: Businesses have been using ERP systems to increase their profitability and efficiency. However, the biggest thing to consider here is ERP deployment. There are a number of options available in the market regarding the configuration and types of deployment. Here we will learn the types of ERP deployment and how they can be chosen.

“Often, the problem lies not with the ERP concept. But in demand for quick fixes and rapid cures to underlying structural problems.”


            Dr. Ravi Kalakota & Marcia Robinson.


ERP deployment is installing and configuring an ERP system so an organisation can use it. This process can be complex and time-consuming, and a team of specialists often does it.

Once the ERP system is deployed, it can be used to manage all aspects of the organisation’s business, including accounting, inventory, customer relationships, and much more.

An ERP system can be a great asset to a business, but only if it is deployed correctly. A poorly deployed ERP system can cause all sorts of problems, so it is mandatory to execute the process appropriately.

Types of ERP Deployment

There are different types of ERP deployments, each with advantages and disadvantages. This blog post will explore the three most common types of ERP deployments: cloud-based, on-premise, and hybrid.

1. Traditional ERP deployment

A traditional ERP implementation will involve installing software on servers at the customer’s site. The software will be configured to meet the customer’s specific needs, and then data will be migrated into the system. Training will be provided to users to ensure they can use the system effectively. Ongoing support will be available to ensure the system continues to meet the customer’s needs.

<<Also Read: Why ERP implementation is a challenging task?>>

2. Cloud ERP deployment

Most businesses have now recognised the potential of cloud-based ERP systems and are looking to deploy these systems in order to improve performance and gain a competitive edge. However, many are still determining the best way to go about this.

Here, we will see the available options for deploying a cloud ERP solution and the benefits and drawbacks of each option. Deployment options include on-premises, private cloud, public cloud and hybrid cloud.

On-premises deployments are those where the ERP system is installed on the business’s own servers. Private cloud deployments are similar to on-premises deployments, but a third-party provider hosts the servers. Public cloud deployments are where the best vendors host the ERP software. Hybrid cloud deployments are a combination of on-premises and public cloud deployments.

The benefits of on-premises deployments include control and security. The business has complete control over the system and can customise it to meet its specific needs. Security is also better than public cloud deployments, as the business controls who has access to the system.

Its drawbacks include the cost of purchasing and maintaining the hardware and software and the time and effort needed to set up and manage the system.

Benefits of Public & Private Cloud Deployments

The benefits of private cloud deployments include control and security, similar to on-premises deployments. The drawbacks of private cloud deployments include the cost of setting up and maintaining the system.

The advantages of public cloud deployments include scalability and affordability. The system can be scaled up or down as needed, and the cost is lower than for on-premises or private cloud deployments. The drawbacks of public cloud deployments include security and control. The business has less control over the system than on-premises or private cloud deployments, and security could be better.

The benefits of hybrid cloud deployments include the following:

<<Also Read: Top 5 ways to drive a successful multi-company ERP implementation>>

3. Hybrid ERP deployment

A hybrid ERP deployment is a mix of on-premises and cloud-based ERP systems. This deployment type can be a good option for companies unsure whether they want to commit to a full-scale cloud ERP implementation. A hybrid ERP deployment can also help companies struggling with on-premises performance issues.

High-tech advantages

There are several benefits to a hybrid ERP deployment. First, it allows companies to move gradually to the cloud. This can be helpful for companies that are hesitant to make the switch to the cloud.

Second, a hybrid ERP deployment can improve performance. Companies can utilise the cloud’s scalability and performance enhancements using cloud-based systems for specific business processes.

There are also some downsides to a hybrid ERP deployment. First, it can be complicated to conduct and manage compared to a full-cloud deployment. Second, it can be more expensive than a traditional on-premises deployment.

Overall, a hybrid ERP deployment can be a good option for companies that are unsure about the cloud or that are struggling with on-premises performance issues.

4. On-premise ERP deployment

On-premise ERP software deployment is becoming increasingly rare as more businesses move to the cloud. However, there are still some cases where it is the best option. Here are a few reasons why on-premise ERP might be the right choice for your business:

1. You need total control over your data.

2. You want to rely on something other than a third party for your ERP system.

3. You must customise your ERP system to fit your specific needs.

4. You don’t want to worry about data security and privacy.

5. You need to be able to integrate your ERP software with other systems in your organisation.

ERP Deployment

5. Two-tier ERP Deployment

A two-tier ERP deployment is the best method to transit to a new advanced ERP solution. By separating the systems into two tiers, you can give your users access to the new system while still using the old system for legacy data. Here are a few tips for a smooth transition.

Two-tier ERP deployments offer several benefits for organisations. First, two-tier deployments can improve performance and scalability by separating the processing load between tiers. This allows the front-end tier to handle lightweight transactions and queries while the back-end tier can handle more complex and resource-intensive tasks.

Second, two-tier deployments can improve security by restricting access to sensitive data and functions to authorised users.

Third, these deployments can improve manageability by allowing administrators to manage different system parts separately.

Finally, two-tier deployments can improve flexibility by enabling organisations to deploy other applications and modules on different tiers.

Overall, each type of ERP deployment has its benefits and drawbacks. It is essential to carefully consider these factors before deciding which type of deployment is best for your business.

<<Also Read: The 7-step ERP implementation plan>>

What is ERP Implementation Significance?

ERP implementation is essential for businesses because it can significantly improve efficiency and effectiveness. When done correctly, ERP can help businesses to streamline processes, improve communication and decision-making, and reduce costs.

ERP can also help enterprises to manage their resources better and respond to changes in marketplaces.

There exist multiple advantages to deploying an ERP system, but the most crucial thing is that it aids in improving the effectiveness of a business. This can lead to cost savings and increased profits for the project.

ERP software can also help to improve customer satisfaction. By streamlining processes and improving communication, ERP software can help to ensure that customers receive the products and services in desired time.

In addition, an ERP system can help to improve decision-making. By providing access to accurate and up-to-date information, enterprise resource planning solutions can help managers make informed decisions that can help improve the organisation’s overall operation.

Tips for Selecting and Deploying the ERP System

You should always select the ERP system with the proper ERP evaluation method. And then, depending on that, the deployment options would rely on the business requirements as well as the deployment capacities of the system.

There is some ERP software that is cloud-based, and some others are a software as a service SaaS-based. There also exist on-premises, hybrid, and cloud ERP. In some cases, the deployment options might be a factor to consider for shortlists, while this shouldn’t be the sole factor in choosing the system.

If you have the fastest growing business, then cloud-based ERP software is the best way. It is because there is always higher scalability and pay-as-you-go price. Moreover, ensuring that each team member is familiar with the enterprise resource planning ERP, you would have deployed is highly mandatory.

Down the Line

Organizations might get attracted towards cloud ERP deployment for financial needs since it requires low lifecycle cost. But it also includes operational/ technical plus points like-

  • Enhanced security and easy access controls

  • Quick ERP implementation options

  • Limitless scalability

  • Excellent security and quick access controls

In some cases, having a cloud ERP system is not just an option. You can also rely on on-cloud premises or on-premises as per your needs. There are a number of deployment and various configuration options available so that you can select the most suited systems for your business.

No doubt, transiting to a new ERP solution might bring a significant change for all users, IT, and complete business. However, it might explore all varied options and then select the configuration that delivers the top scalability.

Then, you can also plan your internal resources and structure to get the best ROI irrespective of the deployment or configuration.

Sage Software Solutions is a leading IT company with an array of advanced ERP Software solutions. Our proprietary products — Sage X3 and Sage 300 will help you cut your operational expenses, improve business productivity, increase operational efficiency, forge robust customer relationships, and strengthen association with vendors, suppliers, and distributors. So, if you are looking to reinforce your business fundamentals and emerge as an industry leader, then please schedule a call with one of our sales representatives.

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