ERP Implementation

What hardware is required to implement an ERP system?

Hardware requirements will vary depending on the number of users you have, your number of locations, the types of integration, and other factors. These factors can be discussed and assessed by the abas tech team during your selection process. It's important for your ERP system's performance that your hardware is properly sized for your installation.

There are various ways to set up your ERP system, such as Cloud, Hybrid Cloud, and On Premise. The basic hardware needed for each type of ERP implementation will differ.

3 Potential Ways To Set Up Your ERP System

Many factors play into which operating environment or Cloud type can or should be used for a particular enterprise and its specific applications, including your existing hardware infrastructure, available capital and time required for the implementation, operating costs, types of user groups and their distribution, degree of control and influence over the application, customization requirements, and much more. As a general matter, the objectives and individual requirements of each organization will determine the suitability of various operating variants, and each variant will have a critical impact on your hardware requirements. Here are 3 possible ways to set up your ERP system:

1. On Premise

In this model, companies run their ERP system on servers in their own data centers located on the company premises, or in a private Cloud – both under their own direct control. The software can either be purchased or leased for a fee. You continue to own and operate the hardware required for your ERP system.

In on premise use cases, the acquisition and operation of servers and storage, the permanent generation of backups, and maintenance of the software and hardware are in the companies' own hands. On premise solutions generally offer, and companies generally take advantage of, the option to orient the software to company-specific requirements with regard to custom functions. The described local, on premise scenario used to be the most common approach to delivering and implementing business software. Clearly, the need for (and costs of) hardware are higher in this scenario.

2. Public Cloud

In this model, IT resources are not made available internally, but online by an external service provider. For example, companies lease the ERP system with the associated licenses and pay usage fees for the use of specific functional areas depending on their degree of use. IT resources such as hardware/servers or applications are available over the internet (instead of being operated in company data centers). Companies can flexibly reserve, use and release these public Cloud resources via their Cloud provider as they require. Hardware-related costs for the company are thus minimized or eliminated.

Software from the Cloud is primarily a standardized solution that is shared equally between multiple users – thanks to dynamic management and the virtualization of resources. As a result, Cloud operators generally achieve the scaling effect characteristic of the Cloud model (economies of scale), which can be passed on to the client companies in the form of multiple cost advantages.

3. Hybrid Cloud

The hybrid scenario combines the on-premise and public Cloud operating models: companies continue to operate business-critical applications and applications that, for example, have very specific requirements or technical limitations, under their own control – with their own hardware in their own data centers or in a private Cloud. Simultaneously, other applications or application components access IT resources from public Clouds. Terms such as "bimodal IT," which combines traditional and agile IT, are often used in conjunction with hybrid approach. In terms of hardware needs and cost, this hybrid cloud solution leaves you between the on premise (highest need for owning/maintaining hardware) and the public cloud (lowest need for owning/maintaining hardware) scenarios.

ERP in the cloud brochure cover

Interested in learning more about Cloud ERP? Learn about the hardware requirements and more by downloading our ERP in the Cloud Whitepaper