On-prem vs. Cloud: What’s right for your ERP future?

Kevin Alexander
August 28, 2025
Est. reading time
5 min read
ERP Systems & Solutions
Industry Insights
Microsoft Dynamics Business Central
SHARE THIS ARTICLE:

Table of contents

When you’re managing ERP decisions, few choices are as critical, or as misunderstood, as the debate between staying on-premise or moving to the cloud. We work with teams every day who are weighing this exact decision, and we get it. It’s not just about software. It’s about control, costs, scalability, and what your business needs to succeed long-term. 

Here’s how we break it down for the finance and IT leaders we partner with: 

The core difference

Let’s start simple:

  • On-premise: you own and manage the servers, the software, the updates, the security. Everything lives on your physical infrastructure.
  • Cloud: hosted and managed by Microsoft, with all updates, infrastructure, and security handled automatically. 

 What this means for your team:

  • On-premise: demands IT bandwidth, manual updates, and ongoing maintenance. 
  • Cloud: frees up internal resources and gives your team access to modern tools, without the heavy lifting. 

Cost implications

On-prem solutions can look “cheaper” at first glance, but the reality is more complicated.

  • Upfront server costs
  • Ongoing maintenance
  • Surprise upgrade fees

Cloud-based ERP, like Microsoft Dynamics 365 Business Central, offers:

  • Predictable subscription pricing
  • No versioning or end-of-life surprises
  • Reduced IT overhead

It’s not just a cost shift, it's a cost strategy. 

Security & compliance

One of the biggest myths we still hear? That on-prem is “safer.” 

In reality, Microsoft’s cloud security infrastructure is among the best in the world. With 24/7 monitoring, built-in compliance features, and security investments most businesses couldn’t replicate on their own.

Bonus: you’ll always be working with up-to-date, compliant software (mission critical for regulated industries). 

Access & flexibility

Hybrid and remote work are here to stay. The cloud was built for that.

With Business Central in the cloud, you get: 

  • Anywhere access via web and mobile
  • Seamless collaboration across Teams, Outlook, and Excel
  • Real-time updates and workflows that don’t rely on someone being at the office

Distributed finance teams can move faster, smarter, and together.

Performance without the patching

Tired of managing updates, missing patches, or running into unsupported systems?

Cloud ERP takes care of that, automatically. You’ll always be on the latest erosion, with improvements rolling out regularly and silently. 

No more waiting for a big IT lift just to stay functional. 

Future-proofing your business

Microsoft’s roadmap is clear: cloud-first innovation.

That means: 

  • Built-in AI tools like Copilot
  • Faster feature rollouts
  • Seamless integration with other Microsoft apps
  • Easier scalability as your business grows

Staying on-prem means staying stuck. Cloud means unlocking what’s next.

Ready to rethink ERP? 

The cloud isn’t the future of ERP, it’s the present. And it’s built for the kind of flexibility, security, and performance finance teams need today.

Still on-prem? Let’s talk. Our team at Alta Vista is here to help you plan a transition that works for your team, your tech, and your timeline.

You might also like

August 19, 2025

From donations to data: How Sage Intacct Fundraising is transforming nonprofit finance

August 13, 2025

Sage Intacct Construction 2025 release 3 highlights

August 12, 2025

Sage Intacct 2025 release 3 highlights

The right foundation for your next stage of growth

Our team of experts is here to help guide you every
step of the way. Let’s start your ERP journey today!