On-premise vs cloud: which is the best retail solution?

When considering investments in Digital Transformation, it is still quite common for retailers to decide between on-premise or cloud software.

This is because the solutions depend on the company's reality and which ones are being desired in order to save costs and have more efficiency and security .

Both approaches offer their own advantages, but it may not be easy to distinguish which would be best for certain types of organizations without due consideration.

In this article, we better contextualize each solution, so that you can choose the one that is best for your company.

Good reading!

On-premise vs cloud computing: assessing the differences 

The migration of the file storage format to digital or the automation of a system to the cloud, the cloud format, leaves many doubts about which model to adhere to. That's why we're going to consider here what characterizes each of the models most used today, so that your company can evaluate which is the best option: on-premise or cloud.  

The cloud computing format offers cloud services on a platform managed by a specialized company , with full access to files by the contracting company. Storage is all online and virtual in the database without physical support. Some models offer the possibility of staged migration.

In turn, in the on-premise model, the data storage infrastructure keeps the servers physically located in the company itself .

Let's understand the distinction.

• Implantation

In the on-premise model, the deployment is done within the company, internally, using the IT infrastructure . This infrastructure is also responsible for maintaining the associated flow development solution .

On the other hand, the cloud computing format hosts all files on the service provider's premises, without local physical storage, but with full access to everything and anytime.

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• Maintenance

The maintenance process also weighs in on a choice between on-premise vs cloud. That's because the first format lays out the maintenance costs for the company, in relation to server hardware, space and energy consumption. After all, these servers need to be running 24/7 in a cool, secure location.

The second model goes according to the format chosen by the company, which can also be hybrid, however, in the cloud storage format, the costs of maintenance, conservation and updates are the responsibility of the company that offers the support, thus reducing costs. costs .

• Monitoring

On-premise, with the files stored in the company itself, there is control done by the employees themselves and this also demands technical knowledge to solve some problems , in addition to effort and routine tasks from your IT team , keeping them always busy with tasks that are not strategic for the growth of the business.

The cloud format, on the other hand, offers the data and encryption key under the control of the third-party provider who is the one who monitors all activities and is responsible for providing solutions in unexpected cases.

In this case, the cloud allows the IT infrastructure to act in a much more strategic way within the organization, while the contracted company performs, through specialized monitoring tools , most of these routine tasks.

• Safety

Security is now a requirement for any digital service , so the choice between on-premise or cloud must be made considering the security demands of the business and the features that each model offers.

In this sense, the on-premise option makes it possible to control the storage of extra confidential information in physical environments, which for some companies may seem more reliable. However, this view is limited, as physical systems are more prone to electrical and digital security failures than is commonly thought.

The cloud computing format, on the other hand, has advanced encryption resources to prevent the advance of hackers , as well as a modern and structured access control to guarantee the security of the deposited data.

• costs

As previously mentioned, the on-premise model requires a higher investment in hardware purchases and maintenance and local storage capacity, in addition to other expenses typical of physical files: cabling, equipment, repairs, updates, energy consumption.

The costs for the cloud format, on the other hand, are included in the supplier's contract package and it pays for maintenance and infrastructure , with no additional expenses over the course of use.

On-premise or cloud server: what is the best alternative for my retail ERP? 

The choice of the ideal model will be defined by the needs of each business. However, the more we observe that the reality of the consumption model has changed in recent times, the more ERP in the cloud gains preference in the market.

Much because of the mass adherence of customers to virtual stores and online services , needing to guarantee faster, more interactive, intuitive and security-certified access.

In addition, having the files in the cloud under the control of a specialized company guarantees the constant updating of processes and flows, according to the reality of the business, promoting greater interactivity between employees, collaborators and customers, reducing costs with the information technology team.

Let's look at other advantages.

Advantages of migrating ERP to the cloud 

1) Governance and Compliance 

The regulatory frameworks defined by the General Data Protection Law , the LGPD, regardless of the sector, require international certifications and ISOs that increase data security and guarantee visibility with quality seals for the companies that maintain them.

Thus, confidential data must be protected and customers, partners and employees must have their privacy guaranteed.

By relying on Auto.Sky , a cloud solution from Sky.One , your retailers will benefit from cybersecurity management by specialists in managing ERPs in the Cloud . This service has Auto.Sky Defender, a brute-force attack monitoring and mitigation tool, and anti-malware that adds another layer of security to the customer.

In addition to 24×7 infrastructure monitoring, looking at all servers in terms of performance, disks, alerts and security. 

Thus, by ensuring the security of business data, an ERP in the cloud also contributes to the governance and compliance required by Brazilian law. 

2) Scalability 

A company from small to large, especially retail, produces a high volume of data. And the benefit stated here concerns the flexibility of cloud storage , with the feature of always being able to hire more space in a simple way and without bureaucracy.

3) Flexibility and availability

With the possibility of accessing files on the cloud platform from different devices, users now have mobility , as well as being able to check data anywhere in the world , with an internet connection available.

This also includes other features such as data synchronization and backup without interruption of access, immediate restore, mirroring and continuous improvement.

4) Cost reduction

Offline storage, as already pointed out throughout the text, generates high maintenance costs, such as software and hardware updates and additional costs. 

Storing in the cloud concentrates spending on the service that will actually be used, with online monitoring and no need to have a technician on site to maintain the platform .

Auto.Sky : a solution capable of extending the benefits of an ERP in the cloud to retailers 

Auto.Sky ensures that your company migrates to the cloud safely, reducing costs and with the agility of a complete migration in up to 24 hours.

All support for planning and monitoring the migration of an ERP to the cloud with security, infrastructure and efficient transition is guaranteed by Auto.Sky .

Web availability makes it work for all users on the device they want, wherever they are.

See, in the video below, how Auto Sky works in practice.

Auto.sky has already helped over 1,000 companies in the market to migrate to the cloud within hours. Spending on technology services saves up to 70% on your budget.

So don't leave your retail vulnerable. Meet Auto.Sky .