The conversation around on‑premise versus cloud ERP systems isn’t new, but the balance has shifted significantly over the last few years. For organisations making critical technology decisions today, understanding the current landscape is essential.
The Basics: On‑Premise vs Cloud
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On‑Premise: Traditionally, this meant hosting the ERP system on your own servers, giving you full control over customisation, security, and timing of upgrades.
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Cloud: Systems are hosted by the vendor, accessible online, and typically offered on a subscription basis. Cloud ERP offers scalability, faster innovation cycles, and easier remote access - but at the cost of handing over some control.
What Has Changed Since the Old Debates
While the old pros and cons still apply, several trends have become clear in 2025:
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Cloud is the dominant choice for new implementations. Vendors like Infor are prioritising cloud-first offerings, with new functionality, AI tools, and industry-specific solutions rolling out faster in the cloud.
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Hybrid and transitional models are common. Many organisations retain certain on‑premise elements while moving core functions to the cloud, allowing for gradual migration without disrupting operations.
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Decision-making is more nuanced. Organisations now consider factors like AI-readiness, analytics capabilities, integration potential, and ongoing innovation cycles - not just control versus flexibility.
Who Might Still Choose On‑Premise
Despite the cloud momentum, on‑premise solutions remain relevant in specific scenarios:
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Highly regulated industries where data sovereignty is critical.
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Organisations with heavily customised legacy systems that would be costly or risky to migrate immediately.
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Companies with robust in-house IT teams who prefer complete control over updates and security.
Key Considerations for Choosing Your ERP Path
Rather than picking a side, think strategically about your organisation’s roadmap:
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Customisation Needs: How bespoke is your current ERP, and how critical are those custom processes?
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Upgrade & Innovation Cycles: Can your organisation benefit from more frequent updates and new features that cloud ERP provides?
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Data & Compliance: Consider security, regulatory requirements, and where your data resides.
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Total Cost of Ownership: Factor in transition costs, ongoing subscriptions, maintenance, and support.
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Future-Proofing: Cloud systems often integrate better with AI, analytics, and low-code tools - something worth planning for now.
What This Means for Recruitment and Teams
For organisations recruiting ERP talent, understanding the current ERP landscape is key. Cloud adoption changes the skills and experience most in demand - from system configuration to cloud migration, integration, and change management. Professionals familiar with hybrid architectures and cloud-first strategies are now especially valuable.
The Bottom Line
On‑premise ERP isn’t dead - but for many organisations, cloud is increasingly the strategic choice. Whether you’re sticking with existing systems, planning a gradual migration, or adopting cloud-first solutions, the focus should be on clarity and planning. Choosing the right ERP path today can shape innovation, efficiency, and competitiveness for years to come.
