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Is Cloud Hosted ERP or on-premises ERP more secure?

Is Cloud Hosted ERP or on-premises ERP more secure?

With businesses now having to make a serious choice between cloud and on-premise solutions, security plays an important role in these discussions. Adopters of modern cloud technology feel like they are getting the best in class security, whilst many still prefer the proximately and at least perceived feeling of control. It is an interesting question; where is your ERP data safest?

Data security gets a lot of attention these days. And rightly so because there are many parties that have an interest in accessing, controlling or even hijacking your data. In today’s highly competitive markets, organizations are forced to be super careful with their data for several reasons.

Considerations of on-premise ERP security

Let’s consider this question with a focus on an on-premise situation. The first topic for consideration is to think of is the level of professionalism you need. Hackers are becoming more sophisticated at a rapid pace, so this level must also continue to increase. Ideally, you are always one step ahead of these hackers. So, you should consider the professional level of your IT staff, their experience and mentality, the size of your budgets and your ability to fill vacant positions.

The second topic is the depth of your knowledge. How knowledgeable is your IT staff today? When was the last time that you got a fresh perspective by hiring a new colleague? What is the size of your budgets for training and inspiration? Is that enough to keep up with the pace? And what was the trend for these budgets in recent years?

The third thing to consider is the width of your knowledge and experience. To what extent are you able to cover all the applications, databases, operating systems and reporting tools that your organization is using today? Are you happy with the answer?

The fourth topic is the physical access to your servers. How accurate is the access control to your server room? How many different people have access? Do you have any idea what colleagues and external vendors do in this room? And please don’t forget the employees of the cleaning company working after closing hours.

And finally audits. How often do you have a professional Electronic Data Processing (EDP) audit performed? This should be delivered by an external company that tells you where the weak spots in your security strategy are. And how accurate are you in following up on their advises?

The reality of owning an on premise ERP solution

Rough estimates tell that 40 percent of all companies using on-premise solutions don’t make a daily back-up of their data. Is that shocking news for you? And are you sure that your organization belongs to the other 60 percent? Let’s face the facts. In today’s world, data security is of vital importance. You have to run a business and focus on your customers, your employees and the desired results. And data security is not your core business.

The security of Microsoft Cloud

In 2020, Microsoft won the Joint Enterprise Defence Infrastructure contract awarded by the Pentagon, the headquarters of the United States Armed Forces. Probably the organization that values trustworthiness most of all companies around the world. And has most to lose! This contract could potentially remove the nervousness in many companies about security in the cloud. Microsoft has 3.500 cyber-security engineers and invests $1 billion a year in cyber security. No need to argue that the security in the Microsoft datacenters is way better than the server room and IT staff of the average SMB company. Including yours?

 

Tom Jenkins

Tom Jenkins is the Managing Director at Dynamics Consultants. As well as having a strong product knowledge, his strategic knowledge of industry and the business landscape helps him to provide thought leadership to a range of vertical sectors. 

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