Cloud ERP and on-premise differ mainly in operations, cost structure and responsibilities. Both models can run the same software. What matters is who carries hardware, updates, backups and availability.

Cloud ERP

• Low upfront investment, predictable running costs
• Fast start, scales by user count or modules
• Maintenance and updates handled by the provider, so internal IT expertise matters less
• Check data location and contract terms actively (GDPR, export rights, termination)

On-premise

• Higher upfront investment in infrastructure, in exchange for control over servers and network
• Operations, patches and backups are your own responsibility or your IT provider’s
• Makes sense for strict compliance requirements, specific latency needs, or existing data center capacity

What actually matters

Before deciding, clarify: Where does the data live? Who runs backups and disaster recovery? Can customizations and export be handled independently of the hosting model? Can the system switch to the other operating model later on?

Digital sovereignty depends less on the cloud or on-premise label than on portability and the ability to switch. Nuclos supports both operating models with the same feature set. The right variant follows from resources, industry and risk profile, not the current trend.