Cloud-Based ERP Software or Private Server? What's the Standard in 2024?

In recent years, the trend of storing increasing amounts of data on cloud-based servers has intensified. ERP and inventory management systems are also more frequently used on cloud platforms. The advantages of cloud systems primarily lie in convenience and the straightforward ability to access data from anywhere in the world. But what exactly are the differences between a cloud-based and a private-server-used ERP software? What legal risks exist in 2024?

We have written a free article on our website about the operation of ERP software on a cloud or private server, summarising all the pros and cons of cloud-based ERP software:

ERP Software in the Cloud or on a Private Server
https://gofilemaker.de/2023/02/cloud-or-server-why-data-sovereignty-is-becoming-increasingly-important/

Cloud systems are simple and convenient to set up, but often inflexible.

Typically, setting up a cloud-based ERP software is simple and convenient as it offers a ready-made solution right in the browser. Moreover, global access to the data via a cloud system is easily enabled with an internet browser. A disadvantage often noted is that cloud-based software tends to be rather rigid and inflexible. The software only offers what is available, and some cloud systems provide the option to adjust print layouts more or less rudimentarily.

Operating ERP software on a private server requires more effort for installation and setup than a cloud-based system. However, a private server provides substantially more options - in the case of a FileMaker server, for example, automatic data backups and individual user rights. FileMaker Server also supports the use of backup servers, which increases the security of the ERP system.

Beware: data protection and GDPR, iCloud and Co.

A key requirement for the secure operation of a cloud-based ERP system is a server location within the EU or Germany. Since the latest development of the General Data Protection Regulation (GDPR), personal data can no longer be stored on US servers. When storing any personal data, care should be taken not to save them in cloud storage services like iCloud, Dropbox etc., as you never know where the servers for these services are located.

A well-maintained private server is safer than a Cloud-ERP.

Operating ERP software on a private server is often substantially safer than cloud-based software, as with a private server, you have full control over your data. In contrast, with cloud-based software, you must rely on the provider to have safe systems, to avoid being hacked, to ensure that the servers are at least within the EU and to guarantee that the software is always available.

FileMaker as a secure server for ERP software on Apple and Windows.

Claris FileMaker offers a highly scalable database server for macOS, Windows or Linux, securely enabling SSL-encrypted global access to FileMaker databases. Database access can be accomplished with FileMaker Pro on macOS and Windows or with FileMaker Go for iPhone or iPad. FileMaker Server provides schedules for automatic backups, supports backup servers if needed, and can share more than 100 databases on LAN or the internet. With a FileMaker Server, you retain full control over your data.

Since the mid-80s, FileMaker has been a flexible database system for Apple and Windows. The current version 20 supports all database functions, allows access to other data systems and is compatible with most industry standards.

Customisable ERP software for individual business processes.

With gFM-Business, an ERP software is available on the market that can operate on a private server and be flexibly customised to individual operational processes using Claris FileMaker Pro. Once the software is set up on the private server, users can log in and start to work. The default version of the ERP software already includes many standard modules such as contact management/CRM, inventory management, and invoicing, article and batch management, and many business management modules.

gFM-Business ERP Software with CRM, Inventory Management and Invoicing
https://gofilemaker.de/gfm-business-warenwirtschaft/

In summary, it can be noted that while cloud-based ERP systems are quick and convenient to set up and easily accessible via browser, these benefits come with some downsides and especially higher risks. These range from the lack of control over data to legal questions regarding personal data and the General Data Protection Regulation (GDPR). If you want to play it safe, always store personal data on a private server.

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https://gofilemaker.de

Development of customisable ERP software featuring CRM, invoicing, and inventory management for macOS, Windows, and iOS based on the Claris FileMaker platform. We design and distribute database systems, ERP software, and inventory management systems on the FileMaker platform. Experience with FileMaker databases since 1994, winner of an FMM Award in 2011, granted by the FileMaker Magazine.

This release was published on openPR.