What is Cloud ERP?
ERP software hosted in the cloud (typically SaaS) where the vendor manages infrastructure, updates, and security.
Definition
Cloud ERP is enterprise resource planning software delivered as a cloud service (typically SaaS — Software as a Service) where the vendor hosts the application, manages infrastructure, handles updates, and provides security. Cloud ERP offers lower upfront costs, faster implementation, automatic updates, and accessibility from anywhere. The main types are multi-tenant SaaS (NetSuite, Workday), single-tenant cloud (SAP S/4HANA Private Cloud), and hosted/managed cloud (traditional ERP hosted by a third party).
How Cloud ERP Works in ERP
With cloud ERP, organizations subscribe to the software instead of purchasing licenses and hosting on-premise. The vendor handles infrastructure, security patches, and feature updates. Users access the system via web browsers. Data is stored in the vendor's cloud (AWS, Azure, GCP, or proprietary). Cloud ERP typically has lower TCO for small-to-mid-market companies but may have customization limitations compared to on-premise.
ERP Vendors with Strong Cloud ERP
Frequently Asked Questions
What is the difference between cloud ERP and on-premise ERP?
Cloud ERP is hosted by the vendor and accessed via browser — lower upfront cost, automatic updates, no hardware to manage. On-premise ERP is installed on your own servers — more control and customization, but higher upfront cost and IT overhead.