Many businesses rely on SAP Business One (SAP B1) to streamline their workflows and increase efficiency. However, SMBs with diverse models need more advanced solutions to remain firm in today’s dynamic landscape. Cloud technology can address this requirement with SAP Business One Cloud solution. It offers many benefits to dynamic businesses and gives them a competitive edge over peers.

In this post, we will go through the importance of a cloud-based SAP Business One and key considerations before migrating your existing SAP B1 to this robust platform. Let’s start with understanding the concept of a cloud-based ERP.

Importance of Moving On-premise SAP B1 to the Cloud

A cloud-powered ERP solution is different than an on-premise one because it does not require any hardware or software to install. As a type of managed cloud solutions, this ERP offers seamless access from anywhere and anytime using the Internet. SAP Business One Cloud is an example of a cloud ERP solution.

In today’s challenging scenario where digitalization holds a key to success, moving to a cloud-based solution can be a strategic move for your business. Migrating your on-premise SAP B1 to the cloud can offer many benefits to your company including more scalability, agility, and flexibility in a cost-effective way.

SMBs and startups prefer this option to save costs and boost productivity through the power of cloud technology. However, it is essential to keep several factors in mind during SAP Business One Cloud migration to get these benefits. We will discuss these factors before looking at a step-by-step guide to migrating your existing SAP B1 system to the cloud.

Top Factors to Consider when Migrating to SAP Business One Cloud

SAP Business One Cloud can remain highly beneficial for forward-looking SMEs. However, migrating the existing SAP B1 to the cloud is a complex process that covers various aspects. When you opt to migrate to SAP Business One Cloud, you need to consider the following aspects-

Cost of Ownership

This is one of the most important factors to consider whether you are deploying SAP B1 to the cloud or moving your existing ERP to the cloud. A cloud-based SAP Business One solution requires monthly subscription fees for accessing the licenses. However, this cost is way less than the same for on-premise solutions that require expensive in-house infrastructure and continuous maintenance.

Implementation Time

Implementation of on-premise SAP Business One ERP takes anywhere from 3 to 6 months. Small and mid-sized businesses often find this process cumbersome and time-consuming. Moving to the cloud is a relatively quick and efficient process. A reputed managed cloud services provider can handle the migration process with less time and minimal disruption for your business.

Collaboration and Accessibility

Remove or hybrid working has become a norm in the post-pandemic period. It is, therefore, necessary to ensure that the cloud-based ERP remains easily accessible for remote workers. Users should get access to the SAP B1 Cloud from anywhere through the Internet. Moreover, the solution should be capable of handling seamless collaboration between different teams irrespective of their locations.

Reliability of Provider

This is another important factor. These days, many cloud service providers offer cloud migration, but you need to choose a reliable and reputed provider. It is also necessary to understand the terms and conditions related to maintenance and upgrades along with technical assistance. You need to ensure that your business gets minimal disturbance during the migration of your existing SAP B1 to the cloud.

Let’s go through a step-by-step process of migrating your existing SAP Business One solution to the cloud.

Step-by-step Guide to Migrate Your Existing SAP B1 to the Cloud

SAP Business One Cloud is a go-to solution for many small and mid-sized businesses. Irrespective of the size and industry sector, you can leverage the benefits of a cloud-based ERP solution by migrating your on-premise SAP B1. Here are the steps for completing the migration process effectively-

Step 1- Assess Existing Environment

It is crucial to evaluate the existing setup and business needs before initiating the migration process. You should thoroughly examine dependencies, customizations, goals, and integrations with the help of a cloud service provider. It will help you identify potential challenges and ensure a smooth transition from on-premise to the cloud.

Step 2- Choose Right Plan

Managed cloud solution providers can offer you a range of options to meet different and diverse business needs. You need to select a plan that aligns with the size, goals, and performance requirements of your company. You can consider various factors in the packages including data storage, scalability, and processing capability.

Step 3- Backup and Data Storage

During the entire migration process, you need to safeguard the corporate data. You can build a comprehensive backup for your on-premise SAP B1 data to prevent any loss or damage during the migration process. Advanced migration tools and services for a seamless transfer of your data can ensure minimal downtime and data integrity.

Step 4- Application, Database Migration

The next step is a migration of your SAP Business One application and databases to the managed cloud server. A technical team of a cloud service provider can guide you through a secure and efficient migration process. You can validate the functionality of your SAP B1 application in the new cloud environment to ensure a successful transition.

Step 5- Integration and Performance Testing

It is imperative to test all the integrations with other business applications and processes thoroughly. It will help you get seamless connectivity to the cloud-driven environment. Extensive testing assists you to identify and resolve any compatibility issues to maintain uninterrupted workflows and data synchronization.

Step 6- User Training and Adoption

Another important step is to prepare your team for the transition of an existing SAP B1 solution to the new cloud-based environment. You can provide them with comprehensive training on the new environment. It will familiarize users with the enhanced features, accessibility, and collaborative tools available in managed cloud solutions.

Step 7- Go Live and Monitoring

You can coordinate with the cloud solution provider’s support team to finalize the process and officially go live. You can implement robust monitoring tools to track system performance to identify potential issues and maintain the continued optimization of your SAP Business One application in the cloud.

Following these steps can assist you in making sure that the migration process becomes successful. It will enable your business to open the doors of new possibilities of the cloud-based SAP B1 solution and unleash its full potential.

Concluding Lines

Migrating your existing SAP Business One on-premise solution to the cloud can be a complex and difficult process. However, this step-by-step guide and key factors for migration to the cloud will help you make a decision and accomplish the migration. All you need to find the most suitable cloud partner for smooth transition with minimal downtime and maximum data safety.

B1 Partner Cloud is your trusted SAP solutions provider. We offer 360-degree services from implementation to maintenance and upgrade to cloud migration as an official SAP Partner. Contact us to learn more about our SAP Business One and managed cloud solutions for modern businesses.

Any business, irrespective of the industry sector and size, needs efficient operations to stay competitive. Enterprise Resource Planning (ERP) solutions can fulfill this requirement by offering the necessary flexibility and scalability. As technology evolves, we have advanced ERP software available. This post will show the difference between its two types- On-premise vs. cloud ERP.

ERP solutions can streamline workflows and bring automation to repetitive processes. That’s not all. Entrepreneurs can get more visibility through advanced data analytics and improve their decision-making process. Talking about the types- both cloud ERP solutions and on-premise software have their pros and cons. We will go through them one by one for better understanding.

Let’s start with an on-premise ERP solution.

What is an On-Premise ERP Solution?

It is a traditional ERP system that companies have been using for decades. You can install this ERP solution on a local server and your IT staff manages it. An on-premise ERP solution can give a high degree of control and many customization options. Sectors like aerospace and defense prefer on-premise ERP solutions for excellent security controls and robustness.

Businesses in core industry sectors like manufacturing and healthcare also favor on-premise ERP for their capability to control various processes. However, the high costs and rigidity of these ERP systems compel enterprises to opt for another option- cloud-based ERP solutions.

Key Characteristics of On-Premise ERP

SAP S/4HANA (Non-cloud) and Oracle E-Business Suite are some of the famous examples of on-premise ERP solutions. These solutions have the following common characteristics-

• Full customization and source code control
• High data security in an offline mode
• Perpetual model for software licensing
• Presence of a server on the company’s location

Here, it is fair to mention that on-premise ERP systems need more attention from your in-house IT staff. Moreover, it requires high capex initially, and you must spend more amount on its upgradation and maintenance.

Introduction of Cloud-based ERP Solutions

Cloud ERP solutions, on the other hand, bring a paradigm shift from on-premise to the cloud. These cloud-based solutions offer more flexibility and scalability to modern businesses as compared to on-premise systems. Users can access cloud ERP solutions with the help of an Internet. However, these cloud-powered solutions have some issues with data security.

Enterprises that want to simplify their technical aspects and grow their businesses rapidly, always prefer cloud ERP software. As this software can assist companies to get rid of upfront investment in hardware and software, many entrepreneurs have started considering this option. Let’s go through the top aspects of cloud ERP solutions.

Top Aspects of Cloud ERP Solutions

SAP S/4HANA Cloud and Deltek Cloud are some of the example of cloud-powered ERP systems. Here are the common characteristics of cloud ERP software-

• Quick development and low investment
• Standardized processes and maintenance
• Automatic and regular updates
• High scalability and flexibility

It is interesting to jot down the differences between on-premise vs. cloud ERP systems.

Five Factors that Differentiate On-Premise ERP vs. Cloud ERP

The decision of selecting the right ERP solution for your company depends on several factors including cost and maintenance. The following difference between cloud-based and on-premise ERP will help you make the right decision-

Scalability and Customization

When it comes to scalability, cloud ERP has an upper hand over on-premise systems. Cloud-based ERP software can enable businesses to adjust available resources quickly to meet changing demands. Though on-premise ERP is robust, it lacks scalability and requires additional effort to scale up. However, this ERP has more customization options than its cloud-driven counterpart. It enables businesses to customized the ERP as per their specific activities.

Security of Data

Data security remains at its best in on-premise ERP. As this type of ERP is close-ended, it offers complete control over data. However, companies need to take other measures to ensure top-notch security. Cloud-based ERPs rely on the Internet and it is a provider’s responsibility to take the security measures. This is, at times, a cause of concern specifically for companies that deal with sensitive data. But then, reputed cloud ERP solution providers take all the necessary measures to ensure data security.

Initial Implementation Cost

Cloud-driven ERP remains more cost-efficient than on-premise ERP thanks to the SaaS model. On-premise ERP demands a large amount as initial investment consisting of hardware and software implementation. Moreover, companies should spend more amount for maintenance and upgrading. Here, a subscription model of the cloud ERPs cause lower upfront costs and fixed monthly fee that includes usage and maintenance.

Flexibility and Integration

If we think of flexibility and integration, cloud ERP solutions beat traditional on-premise ERP. Cloud technology in the ERP software is capable of offering more integration options and users need not to modify hardware or software. On-premise solutions, on the other hand, cannot offer this much flexibility and integration capabilities. Companies must pay additional amount to upgrade or integrate the on-premise ERP with complex business systems.

Upgrade and Maintenance

Cloud solution providers take care of upgrade and maintenance of your ERP solution regularly. This is not a case in on-premise ERP solutions and your IT staff has to take care of their up gradation and maintenance. In other words, cloud ERP does not require additional effort or cost from the user’s side for maintenance, but the on-premise system completely depends on the company that uses it.

Visionary entrepreneurs consider all the necessary factors while choosing the right ERP solution. It is, therefore, necessary to consult a reputed cloud ERP solution provider to know more about the characteristics and benefits.

What Should You Choose- Cloud ERP or On-Premise ERP?

Cloud ERP solutions offer high scalability and accessibility at reduced upfront costs. These solutions are ideal for enterprises that need more flexibility and scalability with quick deployment. On-premise ERP offers more control over corporate data as compared to cloud-based solutions. Businesses that have high security requirements and rigid regulations should go for on-premise ERP.

Your choice between cloud and on-premise ERP depends on your company’s specific needs, budget, and risk tolerance.

Concluding Lines

The difference between on-premise vs. cloud ERP is useful in selecting the right solution for your business. Forward-looking enterprises should opt for cloud ERP solutions and companies that handle confidential data should consider on-premise solutions. Hope this comprehensive guide will clear your doubts and you can choose the right option.

B1 Partner Cloud is a reputable and official SAP Partner. We offer highly secure, accessible, and feature-rich cloud ERP solutions to meet diverse and complex needs. Contact us to know more about our offerings in the cloud-powered ERP domain.