VINSUN Infra Engineering: ERP on premise or on cloud
Sunil Satav founded VINSUN Infra Engineering Pvt. Ltd. in 2002. The company offers electrification solutions and services for several industries across India. However, the company’s growth had led to difficulties regarding an information overload which made information management challenging. Vinsun used Microsoft Excel to process its information for its daily activities. The nonexistence of any ERP system led to ineffectiveness of data being used by the company. With an increasing amount of incidences, Sunil Satav wanted a change. Ruchira Kulkarni, the company’s CIO, advised an introduction of an ERP system that should solve the issues. The following to versions were available:…show more content… The major disadvantage of the cloud system is a lack of security. All the company data would be saved at a third party server, and therefore data security and data privacy are not guaranteed. If the server gets hacked, a competitive advantage might be lost. Moreover, the recurring costs are quite high. Even though the initial costs are rather low, the ongoing software costs are high. Additionally, an Internet connection always has to be provided to use the ERP system.
ERP on premise
The ERP on premise transforms disadvantages of the cloud system to an advantage. Due to the fact that it is a premise system, the company itself is responsible for the security of its data. There will be no company data on a third party server, and therefore the premise system is more secured than the cloud system. However, no need for an Internet connection is needed, the ERP could work on a company’s intranet, and is therefore more secure and is also not affected by the Internet speed of the company. Additionally, the premise system could be customized to the customers needs. VINSUN could customize the ERP system to its on necessities and could therefore be even more efficient.
However, next to all the advantages, an ERP system on premise also has disadvantages. Costs are always important in making a decision whether to purchase a product or not. An ERP on premise system has tremendous initial costs, which could scare VINSUN.