Cloud vs. On-premise ERP systems in Africa

Internet Infrastructure

It is no secret that Africa faces challenges with inadequate and unreliable internet connectivity in many regions. And for businesses wanting to invest in a cloud-based ERP, the reality is that access to consistent and high-speed internet is essential. However, on-premises ERPs do not rely heavily on internet connectivity, to ensure uninterrupted operations and data accessibility in areas where broadband coverage is limited.

Data Security Concerns

Data security is a critical concern, particularly in Africa where cybersecurity risks and data protection regulations are especially prevalent. Some African countries require sensitive data to be stored within their borders due to stringent data protection laws. The good news is that on-premises ERPs provide organisations with greater control over data security and compliance, as they can then physically safeguard their infrastructure and implement tailored security measures.

Cost Considerations

While cloud ERPs offer reduced upfront costs and flexible pricing models, Africa's economic landscape demands a different approach. The cost of internet access and bandwidth can be high, making cloud-based solutions more expensive in the long run. On-premises ERPs can be a more attractive option, offering a one-time, CAPEX investment opportunity. Havecomplete control over hardware and software infrastructure without incurring recurring cloud service costs.

Customization and Localisation

Each business has unique requirements, and localisation plays a crucial role in meeting specific needs. Additionally, Africa is a diverse continent with varying business practices, regulations, and language preferences across countries. This leads to the consideration of customisation and localisation to specifically meet the company’s needs. On-premises ERPs certainly provide more flexibility in customisation and localisation, enabling adaption of the ERP systems to their particular processes, accounting practices, and regulatory compliance requirements.

Technical Expertise and Support

One of the most key factors to any ERP solution contemplation, is the successful implementation of it. Technical expertise are vital, not only for initial implementation but then for ongoing maintenance too.. Unfortunately, in certain areas of Africa, access to skilled IT professionals and support services may be limited, making it difficult to deploy and manage complex cloud ERPs. However, with in-house IT teams or specialised service providers situated onboard, one can enjoy prompt assistance with on-premises ERPs. Therefore, lessening any dependence on external support.  

Conclusion

Although cloud-based ERPs offer numerous benefits and are gaining popularity worldwide, on-premises ERPs remain relevant in Africa due to infrastructure limitations, data security concerns, cost considerations, customisation needs, and the availability of technical expertise. Organisations in Africa should evaluate these factors to determine the most suitable ERP deployment option that aligns with their unique requirements and business environment.

4Sight is a trusted and experienced ERP Partner that has been managing ERP deployments in Africa for years, both on premises and cloud based. With a thorough understanding of the potential hurdles to consider with a cloud-based implementation in Africa, they can readily assist with either choice. So if you are in the process of choosing an ERP solution, engage with us. Email This email address is being protected from spambots. You need JavaScript enabled to view it.