Comparing Between Traditional ERP

systems and Cloud based ERP systems

 Abstract
Cloud Computing is a topic that has gained momentum in recent years.
ERP (Enterprise Resource Planning) system is the structure of the information
used to integrate business processes in manufacturing / services which include
operational and distribution of the resulting product. Several organizations, like
small and medium enterprises (SMEs), are faced with the problem of implementing
ERP systems in their organizations due to the fact that traditional ERP systems (Client-
Server based ERP systems) could be unsuitable to implement. The paper introduces
the cloud computing technology in order to represent new non-traditional approaches
for ERP systems adoption. Finally, the paper addresses the comparisons traditional ERP
systems and Cloud based ERP systems.

Keywoards : Cloud computing, ERP system, Small and medium enterprises (SMEs),
Cloud based ERP system
 Why I choose this title
• Any 3 paper concern about the different between traditional approaches :
“Cloud and Traditional ERP systems in Small and Medium Enterprises”, “is
there differential between traditional and cloud ERP on implementation
activity?”, and “ERP System Adoption Traditional ERP Systems vs. Cloud-
Based ERP Systems and I want to review all this approach”
• The purpose in this paper is to know what’s the differences between
traditional ERP system and cloud based ERP system and have idea to
choose what is best to organizations
• The Planning Contribution is to share information the benefit in cloud to
choose and to know how the ERP System deployment can run
 Introduction
• Today, ERP Systems are widely adopted to enhance the overall
competitiveness of enterprises. It’s even said that the construction of a
modern enterprise is starting from the deployment of an ERP system [1].

• Several problems faced by SMEs in using conventional ERP systems are

addressed due to the developments in cloud computing services based
ERP systems as they provide IT resources at reasonable cost with elasticity
[2].

• The central vision of cloud computing is to reduce the cost of computing

by acquiring computing resources on demand on rent, increase reliability
and flexibility by having a large number of resources[3].
 Fig 1. ERP System Overview [4]
ERP is a software system aims to integrate all functional units of the
enterprise in a cooperative way. It may also extends to include parties
outside the enterprise for example supplier and customer to involve
them in the integration process
 Fig 2. Cloud Services Models
• Software as a Service (SaaS), targets the end user or business.
• Platform as a Service (PaaS) is the delivery of middleware which contains
tools, services and platforms targeted the software developers, to allow
them to build SaaS application.
• Infrastructure as a Service (IaaS) is the delivery of computing power
hardware and software targeted towards administrators.
 Cloud-Based ERP Systems
Cloud-based ERP Systems is nothing more than hosted ERP on a cloud provider.
By answering the flowing. Companies who are providing these ERP services are called
by the name “Cloud Provider” or “Customer Service Provider (CSP)”. In business world,
we have two kinds of cloud-based ERP systems.
A. ERP on SaaS
ERP system is presented as a collection of software in the Software as a
Service (SaaS) term. These services are called “ERP on SaaS”, and because of the
low investment cost in this service, SME’s that have financial problems can use the
benefits of ERP on SaaS.

B. ERP on IaaS
ERP system is implemented on the cloud infrastructure, which it is a service
that the cloud provider provides in the Infrastructure as a Service (IaaS) term.
 The Differences between traditional ERP system
and Cloud Based ERP system Architecture

Fig 3. Traditional ERP System Multi-tier Architecture Fig 4. Cloud-Based Multi-Tier ERP Systems Architecture
Fig 5. Comparison Between The Traditional ERP Systems
And Cloud-Based ERP Systems
Fig 6. ERP Systems Adoption
 Conclusion
• This paper proposes three alternative approaches
(Traditional ERP Systems, ERP on SaaS and ERP on
IaaS) for the for the organizations to select from
based on security rate, investment level and
organizational size (small, midsize or big).

• The paper presents a comparison between the

traditional ERP systems and cloudbased ERP systems
and outlines all the advantages and the disadvantages
factors for both the traditional ERP systems and
cloud-based ERP systems.
 References
1. Moderating Effect of Compliance, Network, and Security on the Critical Success Factors in the Implementation of Cloud ERP
Shivam Gupta and Subhas C. Misra, 2016
2. S. Marston, Z. Li, S. Bandyopadhyay, J. Zhang, and A. Ghalsasi, “Cloud Computing — The Business Perspective,” Decision
Support Systems, vol. 51, no. 1, pp. 176-189, 2014.
3. A. Patel, A. Seyfi, Y. Tew, and A. Jaradat, “Comparative Study and Review of Grid , Cloud, Utility Computing and
Software as a Service For Use By Libraries,” Library Hi Tech News, no. 3, pp. 25-32, 2011.
4. Al-Mashari, M., Al-Mudimigh, A., & Zairi, M. “Enterprise, resource planning: A taxonomy of critical factors,”
European, Journal of Operational Research, Vol. 146, 2003, pp. 352364.
5. Ali M, Nasr ES, Gheith MH. A requirements elicitation approach for cloud-based software product line ERPs. In:
Presented at the Proceedings of the 2nd Africa and Middle East Conference on Software Engineering, Cairo, Egypt;
2016.
6. Indu Saini , Ashu Khanna, S. K. Peddoju Cloud and Traditional ERP systems in Small and Medium Enterprises, Indian Institute
of Technology, 2014
7. Te-King Chien, Cing-Siang Syu, Wen-Ling Lai, Hung-Lan Chang, Is there Differentia between Traditional and Cloud ERP on
Implementation Activity, 2014
8. Abdullah A. Al-Ghozali, Majed A. Al-Mashari, ERP System Adoption Traditional ERP Systems vs. Cloud-Based ERP Systems.
2014
9. Asniar, Siska Komala Sari, Pemanfaatan Cloud Computing untuk Enterprise Resources Planning di Indonesia, Jurnal Infotel
Vol.7 No.1 Mei 2015, 2015
10. Mohamed A. Abd Elmonem, Eman S. Nasr, Mervat H. Geith, 2017, Benefits and challenges of cloud ERP systems e A
systematic literature, Future Computing and Informatics Journal 1 (2016) 1e9