Two tier ERP systems: Combination of on premise and cloud. Cloud ERP manufacturing service outsourcing.

Abstract

Objectives of the Study The objective of this study is to expand the knowledge of the existing studies related to cloud computing. The results will be presented as a figure which will illustrate the ERP integration of on-premise and the cloud. It will give an idea to the new customers of ERP systems on how to deal with two-tier ERP systems (cloud and on-premises) as well as to enhance understanding of ERP services that can be carried on their premises and what ERP services can be outsourced over the cloud. Cloud ERP is quite a new, unclear and broad concept, since all the studies related to it are recent. Almost all cloud ERP providers describe their products as straight forward tasks. But, it still remains unclear how companies can outsource ERP services over the cloud. This paper focuses on such ERP services that can be outsourced over the cloud, as well as the risks associated with any data or information that will be moved from in-house into the cloud. Findings and conclusions ERP providers, IT consultants and manufacturing companies have confirmed that there are no differences between cloud ERP and on-premises ERP. Both ERP types contain similar modules. ERP in cloud or on-premises will serve same defined business needs. Not all data will be moved to the cloud under cloud ERP. In a similar way not all of the services can be outsourced over the cloud using cloud ERP. The data security is the top priority of all cloud ERP providers, IT consultants and manufacturing companies. Cloud ERP involves several partners that serve the same customer of an ERP system. Data safety is the responsibility of all the partners involved in delivering ERP over the cloud.