What is On-Premise ERP?
ERP software installed and run on the organization's own servers and IT infrastructure.
Definition
On-Premise ERP is enterprise resource planning software installed on the organization's own servers and managed by their internal IT team. On-premise ERP offers full control over data, infrastructure, customization, and upgrade timing. However, it requires significant upfront capital investment in hardware and licenses, ongoing IT staff for maintenance, and the organization is responsible for security, backups, and upgrades.
How On-Premise ERP Works in ERP
With on-premise ERP, the organization purchases software licenses (perpetual or term), installs the software on their own servers, and manages the entire IT stack. Upgrades are performed on the organization's schedule (which can lead to falling behind on versions). On-premise is declining in favor of cloud but remains relevant for organizations with strict data residency requirements or deep customization needs.
ERP Vendors with Strong On-Premise ERP
Frequently Asked Questions
Is on-premise ERP still relevant?
Yes, for organizations with strict data sovereignty requirements, deep customization needs, or regulatory mandates that prevent cloud hosting. However, the trend is strongly toward cloud — most new ERP implementations choose cloud deployment.