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Pros and Cons of a Homegrown ERP System

In House Software vs. Cloud Software

In-house software may seem like it provides you with everything you need at the time. But the longer you work with it, the more your business will be exposed to its inevitable inefficiencies and drawbacks.

In this guide, we will take you through the pros and cons of a homegrown ERP system, hoping to help clarify any common misconceptions. In doing so, we’ll also discuss some of the alternatives, and why an integrated business management system is almost always the best option for any business. You will learn:

  • How to avoid business efficiencies and threats
  • The benefits of an integrated system
  • What system will help your business scale

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How do I scale my business quickly?

The core difference between homegrown ERP systems and cloud ERP systems has to do with one fundamental growth element: scaling. A homegrown system is built primarily for maintaining the status quo and preserving that which your business has already attained. A Cloud ERP system, however, offers your business the room to grow and scale.

This is primarily due to the regular updates and the vast amount of resources companies like NetSuite spend on further developments. NetSuite is very aware that in order to attract growing businesses with serious ambitions, it needs to keep accommodating their growth with new functionality, which means businesses can almost always scale quickly (if required).

Another dynamic of this debate that must be discussed relates to the nature of the servers and solutions. Funding and finances are generally more secure when it comes to cloud servers, which provides your business with a system it can rely on for years to come. After all, how frustrating is it when your in-house software becomes obsolete because your software provider goes bankrupt or your consultant changes companies?

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