Traditional ERP Vs Cloud-based ERP

January 5, 2021 by
Traditional ERP Vs Cloud-based ERP
Ismail Harake
| No comments yet

Traditional ERP Vs Cloud-based ERP

After the advent of the digitalization era, the need and requirements for enterprise and resource planning applications came into use. This was during the final decade of the early nineties. The philosophy, though, was established long before, with the aid of different terminologies, to provide market administration. During the wake of the century, enterprise and resource planning applications witnessed a revolution and became an inevitable part of every company entity. There was an expansion of various forms of these technological applications worldwide providing market administration to enterprises as the need grew robust.

The ERP business now provides a range of software focused on the user's needs. Moreover, you might tell that there are so many of them that you need to prioritize them with your criteria to find the best match. These days, ERP implementation has become prevalent and various businesses are selling them all over the world. Such implementations range from industry to industry, from small to medium-sized or multinational corporations. In addition, there are many big brands, such as Toyota, Hyundai, and many more. 

This blog will provide insight into how traditional and cloud-based ERP solutions are compared.

As stated earlier, there was a range of them available all over the world as the need for the ERP increased. The most important grouping among them will be based on their operational terminology. In addition, initially, based on their hosting elements, these ERPs can be categorized as traditional or cloud-based ERPs. This is one of the basic classifications of ERPs available. The functioning of most of the technical elements has changed cloud operations in the world. With additional storage and remote cloud-based operations, capabilities & functionality have an extra edge of advantage over others.

Comparing Traditional ERP Vs Cloud-based ERP


Odoo • Image and Text

The hosting of the ERP is a critical aspect of functions and it primarily relies upon the ERP capabilities in the user requirements and organizational terminologies. Nearly all ERP solutions provide the user with many hosting options that will make it more capable of serving a larger customer base. 

Traditional ERP can be incorporated on the basis of two solutions, one on-site and the other hosted.

Inside the client establishment, premise hosting takes place, which will be more expensive for them since they need to buy all the required equipment. In addition, the human resources that would add up to the expense should also be recruited and trained by them for such implementation.


Odoo • Image and Text

Using technologies that can not be compromised at any cost, security is an essential part of a business process. As they operate from a considered system and are not connected, traditional ERP solutions are considered to be more reliable than cloud-based ones. Cloud-based ERP solutions, however, are reliable and are built on the basis of different operational security protocols.


Odoo • Image and Text

However, considering a small to medium-sized enterprise, the implementation of the ERP will be an expensive factor, but for sure will bring relatable profits in a short time after implementation. The cloud-based ERP operates primarily on the basis of lower implementation and subscription charges compared to traditional ones where consumers need to buy their equipment.


Odoo • Image and Text

In the comparison charts, the output of both the traditional and cloud-based ERP is at the same level and almost goes hand in hand. However, due to the in-house implementation aspects, the traditional one has an additional pace and efficiency nudge.


Odoo • Image and Text

In fact, Traditional ERPs are limited to this ability as it is a product-based solution, unlike a cloud-based ERP solution which is a service-based module.    In addition, in instances other than initial implementation, the traditional one can not be further customized and fled to suit customer requirements, on the contrary, with cloud-based solutions it is possible.

Conclusion: Traditional ERP Vs Cloud-based ERP

In summary, all ERP-obsessed medals can demonstrate those attributes and abilities in a company's operations. Ultimately, however, it is the client's decision to select based on their organizational priorities and criteria.

For quite some time now, Cloud has become the buzzword, with people everywhere talking about it. The confusion between cloud-based and Traditional ERP solutions has also been similar. The thorough discussion above may have helped you to understand each choice better and wisely choose the one that best suits the needs of your company.

Odoo ERP is available both on Cloud and over a web application. It provides an efficient, scalable, and affordable Cloud ERP web-based platform specifically designed for process manufacturing units. It also has a SaaS-based, ready-to-use, affordable but easy model that allows you to manage your company from anywhere and at any time. 

Contact us at for more details or visit and also get the opportunity to experience a free demo.

50,000+ companies run Odoo to grow their businesses.

Join us and make your company a better place.

Traditional ERP Vs Cloud-based ERP
Ismail Harake January 5, 2021
Share this post





Our blogs
Sign in to leave a comment