We use cookies, including third-party cookies from Google to serve personalized ads through AdSense, to operate this site and understand how it is used. By continuing to browse, you accept this use. See our Privacy Policy and Terms of Use for details, including how to opt out of personalized advertising.
Accept
SmartData CollectiveSmartData Collective
  • Analytics
    AnalyticsShow More
    What Kind of Problem-Solving Distinguishes Data Analysts From Software Engineers -- AI-generated illustration
    What Kind of Problem-Solving Distinguishes Data Analysts From Software Engineers
    7 Min Read
    chatgpt image jul 21, 2026, 04 34 30 pm
    4 Core Benefits of Predictive Maintenance after Vibration Analysis
    10 Min Read
    How Does Data Mining Boost Customer Satisfaction in Logistics? Harnessing Analytics for Results -- AI-generated illustration
    How Does Data Mining Boost Customer Satisfaction in Logistics? Harnessing Analytics for Results
    11 Min Read
    chatgpt image jul 13, 2026, 04 23 45 pm
    How Data Analytics Helps Companies Improve User Engagement
    19 Min Read
    chatgpt image jul 13, 2026, 03 59 46 pm
    How Data Analytics Improves Multi-Location Search Strategies
    10 Min Read
  • Big Data
  • BI
  • Exclusive
  • IT
  • Marketing
  • Software
Search
© 2008-25 SmartData Collective. All Rights Reserved.
Reading: Private versus Public Clouds for ERP Software
Share
Notification
Font ResizerAa
SmartData CollectiveSmartData Collective
Font ResizerAa
Search
  • About
  • Help
  • Privacy
Follow US
© 2008-23 SmartData Collective. All Rights Reserved.
SmartData Collective > Business Intelligence > Private versus Public Clouds for ERP Software
Business Intelligence

Private versus Public Clouds for ERP Software

EphraimCohen
EphraimCohen
6 Min Read
Private versus Public Clouds for ERP Software
Photo by StockSnap on Pixabay (https://pixabay.com/photos/macbook-laptop-technology-software-2573421/)
SHARE

The September 10 edition of Processor Magazine provides insight with regard to building private clouds as well as a comparison of private and public clouds. In this article we relate the positions presented to the ERP software space.

Contents
  • Public versus Private Clouds – Key Points
  • ERP software as a special cloud case
  • Summary

Public versus Private Clouds – Key Points

Processor Magazine article The Public vs. Private Cloud Debate Christian Perry makes several key points:

  • Public clouds can offer secure, inexpensive environments that cover a wide range of services for enterprises that are flexible with their needs.
  • Public clouds can offer secure, inexpensive environments that cover a wide range of services for enterprises that are flexible with their needs.
  • Because business and application needs often vary within an organization, a hybrid public/private strategy can be the best solution.

With many virtual machine options as well as a new Windows Azure appliance from Microsoft, there are several options for making private clouds a reality.

ERP software as a special cloud case

Building an ERP software environment requires different priorities than many other applications that currently use cloud infrastructures. Email, file storage, and other basic commodity services are well suited to public clouds because the cost of infrastructure is high relative to the cost of the software (learn more about relative costs in our single vs multi-tenant article). For ERP software customization of the application, integration with other systems, and control of data are critical to the deployment, so a private cloud may be beneficial and cost effective.

More Read

Why Do AI Startups Have High Failure Rates?
Why Do AI Startups Have High Failure Rates?
From MIT/Sloan Analytics: The New Path To Value
Tips for Executives – How to Create a Culture of Evidence
Artificial Intelligence and Healthcare: What You Need to Know
Recap of Global Business Intelligence and Analytics News [VIDEO]
Needs & BenefitsAdvantage ToCommentary
Low start up costsPublicPrivate clouds can be expensive to setup and run. Do not underestimate the cost of building a cloud solution, complete with fault tolerance, backups, connectivity, power, operating systems, and more.
Low ongoing costsPrivate, maybe …Economies of scale make it less expensive for cloud providers to implement a cloud, but they do need to make money. Cloud prices may fall to the point where provider efficiency may offset the profit margin that they charge. For businesses without an existing datacenter, the cost will almost always be lower using a public cloud.
Interfacing with other systemsPrivateConnecting to other systems on your intranet is much easier with a private cloud. When connecting to a public cloud, we aware of bandwidth charges that might be incurred if you build interfaces between your on-premise applications.
Rapid scalabilityPublicPublic clouds can scale up and down quickly. By averaging usage patterns across multiple users, this scaling can be accomplished much less expensively. Applications requiring bursts of resources will require businesses to overbuild an internal cloud.
Control data locationPrivateIn Europe privacy laws require businesses to keep data inside national boundaries, but most public clouds will maintain your data inside the country that you specify. In the USA specific vertical markets have legislation that requires tight control over customer data. Everywhere, some executives like to know that their data is under company control.
SecurityPrivate, but…The security debate can be argued both ways. Public clouds live in state-of-the-art datacenters that may provide better security than a private cloud. So although the perception is that these may be less secure, in fact, the opposite may be true. Transmission over the Internet can be accomplished as securely as remote access to a local area network.
Control of environmentDependsThe control over operating environment varies by cloud provider. Some public clouds such as Windows Azure automatically upgrade your operating system while others such as Amazon allow you to deploy a standard image. Neither public cloud model allows you to control the type of hardware, but most applications (except the virtualization software to create your cloud) do not have specific hardware requirements.

Summary

The public versus private cloud debate differs from application to application. In the special case of deploying ERP software on a cloud, the needs of each individual company might be different. Small companies and organizations with simple accounting practices can benefit from a public cloud while complex organizations with IT departments may be better suited by a private cloud.

Most importantly, the needs of a company may change over time. This means that making a choice to deploy on a public cloud might be right today while a private cloud might be a better choice for the future. When evaluating your deployment consider whether such a switch will be necessary and determine the cost of making that switch. With some vendors the cost is almost negligible while with others the cost (including data migration services, testing, etc.) is not possible or is as expensive as switching your entire ERP solution.

See also: previous ERP Cloud News article on public versus private clouds

TAGGED:erp
Share This Article
Facebook Pinterest LinkedIn
Share

Follow us on Facebook

Latest News

Flat editorial illustration: The article explains that training robots for physical interaction requires three distinct data cate
Physical AI: What Data Do You Need to Train a Robot?
Artificial Intelligence Exclusive Robotics
What Kind of Problem-Solving Distinguishes Data Analysts From Software Engineers -- AI-generated illustration
What Kind of Problem-Solving Distinguishes Data Analysts From Software Engineers
Analytics Big Data Exclusive Software
Flat editorial illustration: The article examines AI agents that escalate from legitimate data retrieval to attempted intrusions
OpenAI’s Government Website Incidents Raise a Hard Question for AI Agents: When Should They Stop?
Artificial Intelligence News Security
Flat editorial illustration: The article's core relationship is the alignment between customer behavioral data (visit frequency,
Data-Driven Loyalty: How Restaurants Use Behavioral Analytics to Optimize Revenue
Exclusive

Stay Connected

1.2KFollowersLike
33.7KFollowersFollow
222FollowersPin

You Might also Like

Technology Adoption and ERP Software References
Inside Companies

Technology Adoption and ERP Software References

6 Min Read
Big Data and Rise of Predictive Analytics
AnalyticsBest PracticesBig DataBusiness IntelligenceCRMData ManagementData WarehousingInside CompaniesITMarket ResearchMarketingPolicy and GovernancePredictive AnalyticsSocial DataSocial Media AnalyticsSoftwareWeb Analytics

Big Data and Rise of Predictive Analytics

5 Min Read
ERP’s Future Is Hybrid Cloud
Cloud Computing

ERP’s Future Is Hybrid Cloud

8 Min Read
BrightIdea and Planview, moving closer to an integrated social product development process
Uncategorized

BrightIdea and Planview, moving closer to an integrated social product development process

7 Min Read

SmartData Collective is one of the largest & trusted community covering technical content about Big Data, BI, Cloud, Analytics, Artificial Intelligence, IoT & more.

From Bolts to Bots: How AI Is Fortifying the Automotive Industry
From Bolts to Bots: How AI Is Fortifying the Automotive Industry
Artificial Intelligence
The Art of Conversation: Enhancing Chatbots with Advanced AI Prompts
The Art of Conversation: Enhancing Chatbots with Advanced AI Prompts
Chatbots

Quick Link

  • About
  • Contact
  • Privacy
Follow US
© 2008-26 SmartData Collective. All Rights Reserved.
Welcome Back!

Sign in to your account

Username or Email Address
Password

Lost your password?