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As many SAP Business One-run businesses undergo digital transformation initiatives, they’re faced with a choice: Do they stick with their on-premises model or migrate the service onto the cloud? Since no two companies are alike, a cover-all solution for the best model doesn’t exist. That said, presuming you understand your business well, finding the right solution shouldn’t be very difficult.

SAP Business One as an on-premises solution

SAP Business One launched in April 2002, before cloud computing became mainstream in the mid to late-2000s. Accordingly, companies that have been running SAP Business One for a while have it operating on-premises. Under this model, you purchase software licenses or select a subscription program from your SAP Business One provider.

On-premises SAP Business One is the traditional route that requires that you purchase and maintain your own server infrastructure and manage everything onsite. Your in-house IT team handles all the required updates and data security protocol, assuming you don’t contract these services out to an SAP Business One service provider. While, on the one hand, you sustain more control when you opt for the on-premises SAP Business One model, the maintenance and management that come along with it carry far more responsibility than your cloud-based choices.

SAP Business One as a Cloud-based solution

There are several approaches to the cloud-based SAP Business One model. Let’s take a look at the three main ways they are administered in more detail below:

  1. Software as a Service (Saas)

Public cloud-based solutions are more commonly referred to as Software as Service (Saas). The standard cloud-based approach is the most dependable and popular choice on the market today. Under this model, SAP Business One, to include all add-ons, extensions are installed and maintained the cloud-based infrastructure offered by your cloud service provider.

When you choose the SaaS model, your SAP Business One cloud service provider facilitates everything, from licenses and updates to backups and data protection from an SAP Business One Cloud control center. SaaS customers are only responsible for entering the appropriate data. Pricing for this service varies and managed IT cloud service providers bill your company periodically based upon the number of licensable users you employ. Aside from paying the bills on time and uploading the information correctly, a trusted cloud service provider takes care of everything for you.

  1. Platform as service (PaaS)

Platform as service is not dissimilar to SaaS with the one exception being that companies are billed upfront for all their own licensure. This model allows for more control over the SAP Business One software, and you don’t have to worry about managing complicated servers. Businesses who have purchased software licenses typically opt for this solution when they decide to migrate services to the Cloud.

  1. Infrastructure as a Service (IaaS)

The Infrastructure as a Service model lets you purchase cloud infrastructure like networks, servers, virtual equipment from a cloud service provider while you access these resources through a web connection. All the licenses and software, including upgrades, regular maintenance may be handled by your company or through a managed IT provider, depending upon your level of service and the agreements you arrange.

The main upside to SAP Business One is discoverable in the array of customizable cloud-based services that can be mixed and match to meet the needs of your organization. If you already purchased your cloud infrastructure and all you want to do is migrate SAP Business One to the cloud, then all you need is a subscription-based licensing program. Since you’ve already made the upfront investment, you are not required to purchase and install more expensive hardware before the software can work. If you want to buy your own licenses down the road, you’ll still have the option of upgrading the service via the PaaS model.

What are the advantages of each On-Cloud vs On-Premise SAP Business One?

On cloud vs on-premise pros and cons are, again, hard to determine definitively since every business is unique and has varying needs. However, a few of the key advantages to using each are listed below:

Why you might choose an On-Cloud model

Whatever your business model, there are several benefits to using On-Cloud SAP Business One. Here are some important ones to consider:

Fast Return on Investment (ROI) – While SAP Business One cloud migration and implementation always entail an investment, companies find strong returns in the short-term and even better after finding profit and growth over the long term.

Pay-As-You-Go Module – Cloud-based SAP Business One models don’t require hardware management, you don’t need to purchase a firewall or third-party server, and you pay for the services as needed. Many prefer this kind of flexibility because it requires less upfront investment and they save resource-intensive server and Cloud management tasks.

Improved Scalability – Small to medium-sized businesses gravitate toward hosted and on-demand SAP Business One solutions because hardware resources tend to be more scalable. It is much simpler to add RAM, boost internet speeds, and increase processing power and storage.

Why you might choose an On-Premises model

Here are a few reasons why an On-Premises SAP Business One model might be best for you:

Customizable Integration – If your business requires a highly customized business flow, On-Premise SAP Business One solutions are right for your company because On-Premise systems don’t restrict how you set them up.

Compliance – Companies that demand next-level data security that goes above and beyond the standard regulatory environment benefit from on-prem SAP B1 solutions. When you can’t expose any critical business information to a third party, you’ll need to keep your SAP Business One system onsite.

Onsite Infrastructure – When you already own well-functioning cloud infrastructure on-prem, you’ll likely benefit from keeping it in place. Since you’ve already invested in internal servers, replacing them with a third-party SAP Business One cloud control center doesn’t make good business sense.

Are you currently assessing SAP Business One’s pros and cons? For an in-depth consultation about which SAP Business One solution is right for your business, give our experts a call at 770-955-3550.