Hosting ERP: Cloud-based SaaS vs Dedicated Server


What is ERP?

Enterprise resource planning (ERP) is the integrated management of core business processes, often in real-time and mediated by software and technology. ERP software helps centralize workflows, improve communication among different departments and liquidate tasks among team members, overall leading to a better working system with improved efficiency and effectiveness. 

Popular (Top 10) ERP Software 

  1. Oracle JD Edwards EnterpriseOne
  2. SAP Business ByDesign
  3. Sage Business Cloud Enterprise Management
  4. SYSPRO ERP
  5. Microsoft Dynamics ERP
  6. Infor StyeLine
  7. Enterprise IQ
  8. NetSuite OneWorld
  9. Epicor ERP 10
  10. IFS Applications

Real-time collaboration and communication via ERP requires the software to be hosted on the Internet. A server solves this problem by existing as an intermediary off-site computer that is connected to a redundant power source 24 x 7 x 365. Redundancy refers to having a backup power source in the case of a power outage. This ensures that downtime losses are kept to a minimal, making sure that company data are safely stored and secured.

Most ERP software companies offer two types of hosting solutions:

  1. Your company purchases the ERP software and hosts on a remote dedicated server.
  2. Your company subscribes to the ERP’s Software as a Service (SaaS) packaged with cloud hosting.

Hosting ERP On A Dedicated Server

There are 2 methods to host a purchased ERP software on a remote dedicated server:

  1. Your company purchases a dedicated server and locates the server in your own server room.
    However, this is unlikely for SMEs. Purchasing a dedicated server, setting up the network infrastructure, maintaining the dedicated server as well as maintaining a server room come with extravagant price.
  2. Your company rents a dedicated server from a hosting company.
    Hosting companies locate their servers in a data center. A world class data center, like CX2 is fully equipped with premium network infrastructure, power redundancy, cooling system and protection against fire hazard. You can choose to either manage the server on your own or outsource server management to the very same hosting company. We offer both unmanaged and managed dedicated server plans. 

All our servers are located in a CX2, a world-class data center in Cyberjaya. CX2 is equipped with hosting infrastructure that ensures all our servers perform at its peak.

Hosting ERP On A Cloud-Based SaaS

There is another type of ERP hosting solution- cloud hosting. Cloud hosting is usually packaged by software companies as a form of subscription-based Software as a Service (SaaS). To put simply, when subscribed to SaaS, you are subscribing to a company service that allows you to access and use their software (without ownership) via the Internet. Bitrix24 is a great example of a SaaS. You access the software via Bitrix24 online portal. All your conversations and tasks are hosted on cloud. To enjoy all these, you pay a monthly subscription fee to use their software and paid services. 

Cloud-Based SaaS

The simplest way to explain cloud is like having many copies of one document and storing each physical document in different storage locations. This promises redundancy, or a reliable backup system that avoid data losses.

Cloud is also less flexible when it comes to server management. Cloud doesn’t allow for root access, and that leaves users with no say about what can be done to the server configuration.

Cloud performance is also rather shaky. Since all users share the same server resources, cloud cannot promise every user a stable performance. When one user takes up too much resources, that leaves the rest of the users with lesser resources, resulting in a less promising performance.

The safety of your company data is also a main concern when hosted in cloud. The cyber attack on Apple’s iCloud has left 26 celebrities with breached privacy- leaked nude photos. Apple is not the only victim of cyber attacks. Microsoft, Dropbox, LinkedIn, Yahoo and Home Depot suffered from cyber attacks as well. This certainly means hackers are increasingly targeting Cloud due to its rocketing popularity.

Cloud has a fairly low entry price. But the cost of cloud can scale up relatively fast and expensive if not managed and utilized properly.

✓ Redundancy

✕ No root access

✕ Performance not guaranteed

✓ Able to handle sudden heavy workload (Scalable while online)

✕ Upgrades are expensive

✕ Data Security

Dedicated Server

When you subscribe to a dedicated server hosting, your company rents the entire physical server. This gives you plenty of resources to work around with. A finely tuned dedicated server promises redundancy using RAID storage, peak performance, flexibility with root access and ability to handle sudden heavy workload.

ERP set up on dedicated server promises data security. 1) Your server is not shared with anyone. 2) Only authorized persons can access your server. 3) To keep data phishers at bay, we set up Firewalls, so that when someone without authorization access your sever, you will be notified immediately.

Over the long run, the cost of having a dedicated server offers the best savings. Its scalability, or ability to handle scaled workload as your needs expand doesn’t require you to invest in frequent upgrades. Dedicated server is the right solution for a growing company. We have prepared for you a comprehensive guide on how to choose the best dedicated server that meets you needs. 

✓ Redundancy

✓ Root access

✓ Guaranteed performance

✓ Able to handle sudden heavy workload (Little offline time needed to scale)

✓ Affordable upgrades

✓ Data Security

Need consultation to find out which Dedicated Server Plan is most suitable for your company? We are glad to offer our knowledge. Get in touch with our support team now! 


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