When implementing a new system, one of the most important strategic decisions is whether to deploy it in the cloud or on-premise. The choice between cloud versus on-premise hosting affects cost, scalability, maintenance, and long-term system flexibility.
A cloud-based system offers speed of deployment, lower upfront costs, and remote accessibility, while an on-premise solution provides greater control, data sovereignty, and customisation.
Selecting the right option depends on the company’s size, IT infrastructure, regulatory environment, and security requirements. Where the chosen system closely aligns with the business’s operational needs, the overall implementation will be faster, smoother, and more cost-effective.
Discovery and Planning: Establishing a Cloud vs On-Premise Strategy
The Discovery and Planning phase is where the implementation journey begins. During this stage, businesses define their requirements and evaluate which deployment model—cloud or on-premise—best suits their operational objectives.
Activities include issuing RFPs, comparing shortlisted systems, assessing vendor hosting models, and discussing functionality and performance with reference clients. This groundwork ensures the system aligns with both strategic goals and the company’s technology roadmap.
Design: Aligning Business Processes with Cloud or On-Premise Systems
In the Design phase, current business processes are mapped and evaluated to identify opportunities for improvement or automation. These process changes must consider the differences between cloud and on-premise systems—for example, cloud solutions often encourage standardised workflows, while on-premise implementations allow for more bespoke configurations.
Engaging system users early and incorporating their feedback into the design and build ensures smoother adoption and better alignment with business goals.
Development: Building for Cloud versus On-Premise Environments
The Development phase involves system configuration, customisation, and integration with other applications.
Cloud ERP systems are typically quicker to configure and update compared to on-premise systems, which often require more extensive technical setup and internal infrastructure management.
During this stage, documentation and user manuals should be prepared to support training and ongoing system maintenance.
Data Migration: A Shared Challenge Across Cloud and On-Premise Systems
Regardless of whether a system is cloud-based or on-premise, data migration is one of the most critical and time-consuming aspects of implementation.
This involves identifying, cleansing, mapping, and reconciling data between legacy and new systems. Ensuring the accuracy of migrated data and validating it against historical financial reports is vital to maintain integrity and compliance post-implementation.
Testing: Validating Cloud vs On-Premise Functionality
The Testing phase ensures that system functionality, integrations, and performance behave as expected. For cloud implementations, testing often focuses on access control, API connections, and performance across distributed environments.
For on-premise implementations, emphasis is placed on infrastructure compatibility, user load, and backup protocols. Testing outcomes frequently inform additional configuration and refinement before deployment.
Deployment: Going Live with Cloud or On-Premise Systems
Deployment marks the transition from build to production. For cloud systems, deployment can be nearly instantaneous and handled remotely, while on-premise systems may require staged rollout, server setup, and more direct IT involvement.
This phase may also involve final data migration, user training, and early-stage post-Go-Live support to ensure stability.
Support and Updates: Maintenance
After Go-Live, support and system updates are essential for long-term success.
Cloud systems typically benefit from automated vendor-managed updates and patches, reducing the maintenance burden on internal teams.
In contrast, on-premise systems require internal or contracted IT teams to manage upgrades, apply patches, and maintain server performance.
Long-term support may transition from the implementation partner to the company’s internal helpdesk or to vendor support teams, depending on the hosting model.
Delivering a Successful System Implementation
A successful implementation—whether cloud or on-premise—starts with thorough planning and a well-defined methodology.
Careful selection of the deployment model, attention to data integrity, and adaptability throughout each phase will significantly improve the likelihood of delivering the project on time, within budget, and aligned to business goals.
