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Cloud ERP vs. On-Premise ERP: Which is More Secure?

Cloud ERP vs. On-Premise ERP: Which is More Secure?

Is cloud ERP more secure than on-premise ERP? For many businesses, the answer is yes. Although there are certain situations where on-premise software is better for an organization, cloud-based ERP solutions include best-in-class security with no added costs or effort. Security is a challenge for a lot of small to medium businesses to maintain, and it is one of the big benefits of cloud ERP vs. on-premise ERP.

Here are 4 areas where cloud ERP security outperforms on-premise ERP:

1. Safeguards against external threats

As processes become more digitized and businesses gather more data, cyberattacks have become more common, more sophisticated, and more disastrous for victims. For businesses with on-premise ERP, it’s up to the internal IT department to continuously monitor and defend against the latest threats – and it’s too easy to fall behind. Cloud providers, on the other hand, specialize in safeguarding your data against cyberthreats. Their dedicated security resources and budgets are substantial, keeping your data safer from attacks in the cloud than you could ever match with on-premise servers and software.

2. Physical security and protection

Cloud data centers employ numerous methods to ensure the physical security of hardware against natural disasters, theft, hardware failure, or any other situation that could lead to decreased performance or data loss. In addition to having physically protected data centers with multiple geographic backups, cloud providers will make sure they have the latest hardware necessary to keep your ERP performing at high speeds. This stands in contrast to on-premise hardware, where a fire, break-in, server failure, or power outage can be disastrous for your business’s data and processes.

3. Internal security tools

Although strong internal security features aren’t unique to cloud-based platforms, the built-in recurring updates of cloud platforms like Dynamics 365 and NetSuite ensure your organization has access to powerful internal security features like Segregation of Duties (SODs) and alerts for unusual activities. As your technology evolves, your security will evolve with it.

4. Built-in Disaster recovery

As businesses around the world are discovering through the COVID-19 pandemic, disaster recovery is an important part of protecting your business from disruptions. With cloud ERP, remote connectivity, data backups, and 24/7 mobile access are part of your solution from day one. That means you don’t have to worry about your servers going down, and if a disaster suddenly makes it impossible for your employees to get into the office, everyone will be able to continue working remotely from any location and device.

A few exceptions:

For businesses in certain industries, or with tight regulations for storing personal data (for example, healthcare), it might be more practical to keep some business data on-premise. We help many organizations with unique requirements enjoy the benefits of cloud access and security while keeping some data on-premise. This is a hybrid cloud approach and can be designed to meet a wide variety of needs.

Want to learn more about the right ERP solution for your organization?

Here at OTT, Inc., we believe in using a systematic approach to help customers learn about, decide on, implement, and use the best possible ERP solution. Every business is different, which is why we use a proven 5-step methodology to ensure measurable outcomes for your organization. If you’d like to learn more about cloud-based, on-premise, or hybrid ERP solutions, contact us today.

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