Are you aware that, typically, 70% of major corporations utilize ERP software? Even more striking is the fact that 53% of entities report a beneficial effect resulting from their ERP investments. Organizations rely on Enterprise Resource Planning (ERP) to run their core functions. This system processes orders and oversees financial matters. Most critically, it provides the key data that ultimately drives the kind of decisions that define an enterprise's long-term direction.
Even a top-flight ERP program is only as effective as the hosting environment it runs on. Choose a bad hosting solution, for instance, and you can create all sorts of problem orders, for which the ERP system will then take the blame. In general, a bad hosting provider will end up costing you a lot of money. It will cost you a lot of time, too. Your most important people will need to engage in some serious troubleshooting and support. That is the only way they can work with a system that enjoys reasonable uptime.
If you want to ensure that your ERP investment yields concrete outcomes. Then, you must consider the vital role that hosting plays in not just the performance of your ERP, but also in its security and in the return on investment that your company realizes. Let's take a look at the big reasons why the right hosting for your ERP can maximize not just its performance, but also its security and ROI.
Even a top-flight ERP program is only as effective as the hosting environment it runs on. Choose a bad hosting solution, for instance, and you can create all sorts of problem orders, for which the ERP system will then take the blame. In general, a bad hosting provider will end up costing you a lot of money. It will cost you a lot of time, too. Your most important people will need to engage in some serious troubleshooting and support. That is the only way they can work with a system that enjoys reasonable uptime.
If you want to ensure that your ERP investment yields concrete outcomes. Then, you must consider the vital role that hosting plays in not just the performance of your ERP, but also in its security and in the return on investment that your company realizes. Let's take a look at the big reasons why the right hosting for your ERP can maximize not just its performance, but also its security and ROI.
Understanding the Core Hosting Models for ERP and Database Applications
Comprehending which main ERP hosting solutions fit with your organization is paramount. Each solution exists within a model that is a unique blend of the four critical areas that are most important when it comes to ERP: control, cost, scalability, and security. Each area and its respective model possess distinct characteristics.
And, together they represent the sum total of what each hosting solution provider offers in terms of serving an ERP. Your selection process has to account for the differential between these area models.
And, together they represent the sum total of what each hosting solution provider offers in terms of serving an ERP. Your selection process has to account for the differential between these area models.
1. On-Premise ERP Hosting
Self-hosting is the opposite of cloud hosting, where the service provider is responsible for the many different tasks that need to be done to keep the service running. In an on-premises setup, the end user does all of this themselves, with their own resources. That means paying for the servers and the infrastructure they need to keep them running. It also means employing people with the right skills, the kind you find in IT departments to ensure that everything works smoothly, all the time, and stays secure.
2. Cloud Hosting for ERP
Rent virtualized computing resources from an Infrastructure-as-a-Service platform, such as AWS, Microsoft Azure, Oxtrys or Google Cloud, and you are working with something analogous to a public utility. You do not pay a flat rate, but rather for what you consume (like electricity), and consumption can vary greatly from month to month.
If you host your ERP application in any of these clouds, you can scale up and out or contract back as your business conditions warrant. Moreover, it costs just a tenth of what it would cost to house the same systems on your own if you consider the all-in cost to your cloud provider of managing the physical infrastructure.
If you host your ERP application in any of these clouds, you can scale up and out or contract back as your business conditions warrant. Moreover, it costs just a tenth of what it would cost to house the same systems on your own if you consider the all-in cost to your cloud provider of managing the physical infrastructure.
3. Managed ERP Hosting
Increasingly, businesses are opting for managed ERP hosting. This alternative gives them the control they need, along with the security of knowing that their environments won't be breached. Even so, it allows those businesses to operate in a way that is as effortless as possible, impacting their time and resources as little as possible.
Specialized providers like Oxtrys take responsibility not just for the servers and the networks, but also for the management of security. That's a big deal, since an unmanaged server is an open door for intruders. Also, unmanaged backups are a ticking time bomb. Everything we just said about servers also applies to databases. Underneath every decent ERP application lies a well-tuned database.
Specialized providers like Oxtrys take responsibility not just for the servers and the networks, but also for the management of security. That's a big deal, since an unmanaged server is an open door for intruders. Also, unmanaged backups are a ticking time bomb. Everything we just said about servers also applies to databases. Underneath every decent ERP application lies a well-tuned database.
Key Factors When Evaluating ERP Hosting Providers
After you grasp the different hosting models, you should evaluate potential vendors against some very important criteria that we think make or break ERP and database-driven applications in a hosted environment.
1. Performance and Low Latency
When it comes to an Enterprise Resource Planning system, the speed of transactions and the time they take can either make it or break it. Each time a database is asked a question or a piece of data is asked to come forth, it just has to happen almost instantaneously for the operation to be considered a "success" on the user's side.
2. Assets Reserved Only for You
Make it crystal clear to your provider that you require remote desktop servers that are solely for your use, with no shared components whatsoever. You want a dedicated CPU, RAM, and storage just for your ERP app. If anything is shared, you can't count on consistent or reliable performance of your app.
3. Storage Considerations for ERP Hosting
Choose storage systems based on NVMe SSDs to circumvent volatile access to data. NVMe is a high-speed interface that allows for direct connection of SSDs to the motherboard, vastly increasing transfer speeds compared to traditional SATA connections. Select storage systems that achieve fast access to data by employing the good bones of NVMe.
4. Robust Network Architecture
The supplier must provide multiple high-speed network connections to ensure low latency and fast data transfers for end-users. A resilient network configuration decreases the amount of downtime and prevents bottlenecks during times of peak usage.
5. Advanced Security and Regulatory Compliance
The most sensitive information your organization has is contained within its ERP systems. That includes financial records and customer data. Security breaches can be disastrous and, even if it seems like a basic starting point, always select a hosting provider as a tool who offers multi-layered security and a lot of compliance support atop that security.
Layered Security
- Managed firewalls and intrusion detection/prevention systems (IDPS.)
- Proactive vulnerability scanning and not doing stupid things (timely patch management).
- Strict access controls and strong encryption (at rest and in transit).
- Assistance with regulatory compliance (GDPR, HIPAA, PCI DSS, etc.).
6. Scalability to Support Business Growth
Your hosting solution must change with your business. Regardless of how you might be growing, extending to new locations, adding users, or confronting the up-and-down demands of a seasonal business, cloud hosting is the right kind of hosting for ERP applications. It provides the elasticity to not just grow but also shrink your resources as needed.
ERP Hosting Models: Side-by-Side Comparison
Conclusion
Choosing the optimal hosting solution for ERP and database-centric applications is one of the most critical tech calls you’ll ever make. The discourse among on-premise, cloud, and managed ERP hosts is shifting more and more toward the latter two, with businesses appreciating the array of benefits that come with hosted and expertly managed solutions. The aim here is to set up a hosting environment that will ensure superb performance and uptime. Also, not to mention true scalability that lets your resources grow as you do, serving as a genuine extension of your team.
