Homegrown ERP System vs Cloud Solutions
When it comes to an ERP system, you need something that works for your business in 10 or 20 years, and not just today. This brutal fact has sparked many debates about what the most sustainable types of ERP systems are. While developing an in-house business management system used to be quite a popular route, it seems to be losing ground to more popular cloud solutions.
The temptation of a custom solution, developed in-house specifically for your needs, possesses a lot of emotional weight. It may feel right, because it seems unique and addresses the specific needs of your business – but is this just a vanity metric?
To rephrase, does a homegrown ERP system provide your business with anymore benefits than the readily available cloud solutions? Read on to discover why – in our opinion – a homegrown ERP system almost always looks better on paper than in reality.
Scaling vs Maintaining
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).
The Strength of Cloud Servers & Solutions
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?
Cloud servers and cloud solutions are less risk-averse than smaller, more custom systems, which tend to be developed for current specifications, rather than to accommodate future requirements.
Find out more about the pros and cons of a homegrown system
Want to read more about this interesting topic? We recently put together an in-depth guide on the pros and cons of a homegrown system, which goes into much more detail than this blog.