Cloud vs on-premise ERP: how should a Moroccan business choose?

Cloud, on-premise, hybrid: what is the difference?

With cloud, or SaaS, the software runs on the vendor's servers: you reach it through a browser or an app, pay a subscription, and the vendor handles hosting, backups and updates. With on-premise, the software is installed on a server you own, in your premises: you buy a licence, and your team or IT provider keeps everything running.

Hybrid set-ups sit in between: installed software on a server rented in a data centre, a cloud with an offline mode, or an on-site server opened to mobile teams through secure remote access.

Access, Internet and mobility: what changes day to day?

Cloud is built for remote access: a head office in Casablanca, a warehouse in Agadir and a sales rep on the road all work on the same data. In return, it depends on the connection, unless the vendor provides an offline mode; a backup connection, such as mobile tethering, remains a simple precaution.

On-premise runs on the local network even when the Internet is down, an advantage for a factory or a poorly connected site. On the other hand, access from another site or a phone needs extra configuration, such as a VPN or a secure relay.

Security, backups and data: who is responsible for what?

Neither model is secure by nature: it all depends on who does the work. In the cloud, the vendor manages servers, patches and backups; you remain responsible for passwords, each user's permissions and connected devices.

Data location deserves a question too. Personal data about your customers and employees falls under Law 09-08, supervised by the CNDP, which regulates in particular transfers abroad, and some regulated sectors have their own requirements. Ask any cloud vendor where data is hosted, and check your obligations with your adviser.

On-premise, by contrast, everything rests with you:

• A server in a locked room, protected by an uninterruptible power supply.
• Automatic, tested backups, with a copy kept off site against fire, theft or ransomware.
• System and software updates, owned by a named person.

Updates, IT skills and growth

In the cloud, new versions arrive without any action on your part, including regulatory changes such as a VAT rate amended by a finance law. On-premise, each update has to be scheduled, after a backup and with a way to roll back. A small business with no IT staff can start in the cloud within minutes; an installed ERP needs at least an IT provider. To grow, cloud simply changes plan, while on-premise extends its licence and sometimes its server.

Costs: how do you compare a subscription with a licence over three years?

A subscription and a licence can only be compared over the same period, usually three to five years. On the cloud side the calculation is direct: a subscription at 449 DH excl. VAT a month (SOGESTIO's Pro plan, for one company and up to 10 users) comes to 16,164.00 DH excl. VAT over 36 months, or 13,470.00 DH excl. VAT with annual billing (3 × 4,490 DH), with no server to buy or maintain.

Cloud spreads spending out and makes it predictable. On-premise needs a larger upfront investment, which can make sense for a stable organisation with many users and an IT team. To cost it, add up every item over the same period:

• The licence, often priced by number of companies and users.
• The server, the power backup unit and backup media, then their replacement.
• Installation and the IT provider's call-outs.
• Internal time spent on backups, updates and incidents.

How to decide: a five-question method

Answer the five questions below in order: a single hard constraint can be enough. If the answers are split, a hybrid set-up often settles it, for example an on-site server for the factory with secure access for sales staff. Involve your chartered accountant and your IT provider in the decision.

• Teams across several sites, on the road or on construction sites? Cloud makes access simpler.
• Business that must keep running with no connection at all? On-premise, or a cloud with an offline mode.
• Data required on your premises by an internal rule, a customer or a regulator? On-premise.
• No IT staff or reliable provider for backups? Cloud reduces the risk.
• Monthly expense or upfront investment? Cost both over three years.

SOGESTIO in the cloud or on-premise: what is available

SOGESTIO comes in both models. In the cloud, it runs in the browser, installs as an app on computers, Android and iPhone, and has an Android app. Offline, you can view data and enter customers, quotes, draft invoices, payments and expenses; everything syncs automatically when the network returns, and legal invoice numbers are assigned by the server at that point, never on the device. Plans cost 199, 449 or 990 DH excl. VAT a month, with a 14-day free trial and no credit card.

The On-premise version is installed on your server, works without the Internet and keeps data on your premises: Docker installation or a Windows installer (setup.exe) with a built-in database running as Windows services, automatic backup, signed updates with automatic rollback on failure, and a secure relay for mobile access from outside. Licensing depends on the number of companies and users, on quotation.

On security: each company isolated on the server side, role-based permissions, an audit log, HTTPS, two-factor authentication and remote sign-out of a lost device.