What’s the Difference between “True Cloud” and “Hosted Cloud” ERP Solutions?

As enterprises of all sizes transition to cloud-based infrastructures, there are more options than ever for transferring your ERP and business applications off-premises. One thing to keep in mind is that not all the "clouds" are made equal, so knowing what you're receiving before you sign up can be perplexing.

So, how do "Real cloud" and "Hosted cloud" Solutions Differ?

What is a true cloud solution?

A) True cloud-based solutions:-

True cloud-based solutions called SaaS (software as a service) are multi-tenant solutions that were created from the ground up for the cloud. Your data is stored in data centers with connected servers by the software manufacturer, who offers you remote access to the software. Your information is kept private, but data centers allow for task distribution and resource sharing. The cost of hosting the data is reduced because it is shared among numerous users.

In summary, with true cloud, ERP solutions, the server infrastructure, software maintenance, security, updates, and backups are all managed by the vendor. 

Advantages: 

True cloud solutions offer a variety of advantages:  

• The infrastructure is more resilient and able to handle traffic spikes with greater elasticity.

• Data centers have the ability to commit a significant amount of resources to ensure strong security.

• True cloud solutions are more scalable and easier to combine with other applications or add-ons.

• Automatic updates save money by eliminating the costs of traditional upgrades.

• With a more predictable subscription-based licensing approach, your company saves money on IT infrastructure and maintenance.

Disadvantages: 

For some organizations, the multi-tenant structure of true cloud solutions may not fit their needs: 

• For certain firms, having less direct control over the software may be a concern.

• Datacenter security is excellent, but it may fall short of some industry standards.  

 B) Hosted Cloud Solutions:-

A hosted cloud solution is single-tenant, with your data housed in a dedicated, private cloud. In the case of ERP software, this means that a company that uses a hosted cloud solution owns the software but pays a hosting provider to run it on off-premises servers. This offers some of the advantages of the cloud, such as better remote access and disaster recovery, but allows businesses to have more control over their software solution and security. 

Advantages: 

The advantages of hosted cloud are mostly for businesses with very specific needs: 

• Privately hosted cloud provides additional security control for enterprises that handle a lot of sensitive data or have rigorous security requirements.

• Industries with a lot of regulations may benefit from having greater direct control over the software.

Disadvantages: 

Privately hosted cloud brings some significant disadvantages over true cloud software: 

• Businesses are still responsible for owning, maintaining, and upgrading their own software, and will not benefit from genuine cloud solutions' automatic updates.

• Hosting a solution can be significantly more expensive than subscribing to true cloud-based solutions because the infrastructure expense is not shared by other customers.

• Much of the security, virtual infrastructure, and other costs are still the responsibility of the company.

• When compared to true cloud software, integrations and modifications can be more expensive and complex.