What is Hybrid ERP System?

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What is Hybrid ERP System

Generally, we only know two ways to implement an ERP system in our company. One is by using the conventional method, which is an on-premise system or using a cloud server to store all of your data.

Both on-premise or cloud ERP systems do have their advantages and disadvantages. The on-premise system offers reliability, although it is pricy, while cloud systems are more affordable and easier to implement, many won’t go this route because of the safety issue.

This is what makes many companies reluctant to choose which system is the best for their business. Very few aware that there is a better option, which is a hybrid ERP system. In this article, we will learn more about the hybrid ERP system and its benefits for your business.

What is a hybrid ERP system

A hybrid ERP system is a combination of on-premise and cloud systems. As a user, you will get the best of both worlds by using a hybrid ERP system. Not only is it cheaper in terms of price, but the hybrid ERP system is also able to provide the reliability of on-premise systems.

Hybrid ERP is also known as a tier-two model because of the bimodal combination of the capabilities of on-premise ERP and cloud-based features. Hybrid ERP can integrate several software systems easily and quickly such as CRM, sales, and accounting. Things that are difficult to do by on-premise systems.

Not only that, but hybrid ERP also has other benefits for your company. Here are three of them.

Related article: What is ERP and Why is It Important for Businesses?

Implementation costs

From cost aspects, hybrid ERP is priced between the cloud system and the on-premise system. Cheaper than on-premise systems that require you to build infrastructure beforehand, such as servers.

In addition to infrastructure costs, you also have to pay additional costs for training your staff on how to use the system. Not to mention you have to hire an IT person or call the software developer when a problem occurs.

Hybrid ERP liberates you from these costs. Thus the implementation costs and maintenance can be reduced.

Better flexibility with hybrid ERP system

For industries such as digital media or professional services, hybrid ERP is the best choice compared to on-premise systems. Because an on-premise system is more suitable for industries that utilize a lot of assets such as manufacturing or mining.

Not only that, hybrid ERP allows your business to stay operating even when your system is not connected to the internet. Whenever you experience connection problems, the system can still operational using an on-premise system. When the system is reconnected to the internet, the data will be synchronized with the cloud server.

Easier upgrades

If your company has previously used an on-premise system and wants to add cloud features, choosing a hybrid system is the best path. The characteristics of hybrid systems make it easy for you to integrate new features.

You don’t need to spend a lot of money on building a new server. You can integrate those cloud features with a hybrid system. Besides being cheap, the time needed to add a cloud feature is shorter compared to building a new on-premise system.

Besides, the hybrid system also makes it easy for your employees who want to access critical ERP functions on the go. Synchronization between on-premise systems and cloud systems allows your employees to gather info anytime, anywhere.

Related article: How to Choose the Best ERP System for Your Organization?

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