Cloud ERP vs On-Premise: What Distribution Companies Need to Know
For distribution businesses, operational efficiency and real-time visibility are everything. Yet many UK distributors are still running on ageing, on-premise ERP systems that struggle to keep up with their needs. As cloud platforms like Acumatica gain traction, business leaders are asking a key question:
Should we move to cloud ERP and how does it really compare to on-premise?
Here’s a practical breakdown of the main differences, tailored specifically to distribution companies evaluating their next ERP investment.
1. Deployment & Accessibility
| Feature | On-Premise ERP | Cloud ERP |
|---|---|---|
| Where it’s hosted | Your servers (onsite or data centre) | Secure cloud environment (e.g. AWS) |
| Access | Local network/VPN | Anywhere, anytime via browser/mobile apps |
| IT workload | You manage hardware & updates | Vendor manages infrastructure & updates |
Why it matters: Distributors often need access in warehouses, on the road, or across multiple sites, making browser and mobile-friendly cloud ERP far more practical.
2. Cost Model
- On-Premise: Usually large upfront licence fees + cap-ex hardware + annual maintenance
- Cloud ERP: Subscription (OpEx), typically paid monthly/annually — includes hosting, updates & security
Bottom line: Cloud ERP like Acumatica avoids heavy upfront cost and helps SME distributors preserve cashflow. You only pay for what you need.
3. Scalability & Flexibility
- Distribution businesses can change quickly — acquisitions, new products, ecommerce demands, added warehouses. Cloud systems are designed to scale smoothly.
- Add new users, modules or locations without new servers
- Integrate with e-commerce, couriers, WMS, CRM using APIs
- Acumatica pricing is based on usage, not per-user, making growth more affordable
4. Real-Time Visibility & Inventory Control
Cloud ERP delivers a live view of stock status, customer orders, landed costs and purchasing across all locations — updateable in real-time by any device.
- With Acumatica Cloud ERP, distributors benefit from:
- Live dashboards & KPI tracking
- Real-time stock levels & reorder alerts
- Demand forecasting and procurement automation
- Mobile apps for warehouse teams
This drives faster decision-making and helps prevent out-of-stocks, overbuying or delayed fulfilment.
5. IT Burden & Updates
On-premise ERP systems typically need manual updates and proactive server management, often leading to risky delays and version lock-in.
Cloud ERP platforms include:
- Automatic upgrades (you’re always on the latest version)
- Built-in security, backup & disaster recovery
- Reduced internal IT support requirement
6. Security & Compliance
Many distributors worry that cloud ERP is “less secure”. In reality, providers like Acumatica partner with world-class cloud hosts (e.g. Amazon Web Services) with far more robust security and SLAs than most SMEs can implement themselves.
- GDPR compliant UK/EU data residency options
- Encrypted backups and multi-factor authentication
- Full audit trail for traceability and compliance
7. When Does On-Premise Still Make Sense?
While most growing distribution SMEs are now opting for cloud, on-premise may suit organisations which:
- Have sunk investment in existing private infrastructure
- Operate in ultra-remote areas with poor connectivity
- Have exceptionally rare security requirements that demand internal hosting
Even then, modern hybrid cloud-enabled deployments often offer a more cost-effective route.
Conclusion: Why UK Distributors Are Moving to Cloud ERP Like Acumatica
For dynamic distribution companies, cloud ERP delivers what legacy systems can’t: real-time visibility, stronger control, and scalability without IT complexity or large cap-ex. With industry-specific workflows, warehouse mobility and flexible deployment, Acumatica is quickly becoming the go-to cloud ERP choice for UK distributors looking to future-proof operations and sharpen their competitive edge.
Revolutionise Your Distribution Business with Acumatica Distribution
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