The cheapest ERP quotation is not always the lowest-cost implementation. Cloud and on-premise options distribute costs differently, and the right comparison should cover several years of operation.
Cloud cost items
Include subscription charges, user growth, implementation, training, customization, data migration, API integrations, support and possible export fees. Verify whether backups, storage and security support are included.
On-premise cost items
Include server hardware, licenses, storage, uninterrupted power, networking, backups, disaster recovery, IT staff, patching and hardware replacement. Offline operation may still need local network support.
Compare a common scenario
Model the same number of users, production sites, support hours and required features for a three-to-five-year period. Compare upfront spend, recurring spend and the cost of downtime, rather than simply monthly subscription versus server price.
Data control questions
Clarify who owns the data, how it can be exported, who handles upgrades and how the company recovers if the provider is unavailable. Confirm any contractual or customer-imposed location requirements.
Conclusion
Choose hosting based on operating risk, service quality and full life-cycle cost, not on slogans about cloud or local servers.
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