Hybrid ERP Systems – Why Businesses Should Consider it?


Sharad Bhardwaj

Senior editor

Parul Saxena

Chief editor

Last updated: March 8, 2021

ERP software is a must-have business tool. All kinds of organizations could do with an ERP platform. However, one mistaken notion that most companies have is that ERP software needs to be on-premise or a cloud-based system. The new buzzword currently trending is a hybrid ERP system. It is breaking barriers across the globe, and many companies have transitioned to hybrid ERP tools.

Why settle on one when your organization can benefit from the best of both worlds. Hybrid ERP software has the ability to utilize a cloud-based system to supplement the on-premise ERP solution. It is low on cost but ranks super high on functionality and operational efficiency. The best part about one-hybrid ERP systems is that costs just a fraction of the implementation cost of an on-premise tool. It comes power-packed with a range of advanced and innovative features that are characteristic of cloud-based ERP software.

Hybrid ERP platforms can work for any kind of organization. Start-ups, small to medium enterprises and corporate giants can all go in for hybrid ERP software. It can help them achieve all the important functions of enterprise resource planning tools. Core functionality processes of on-premise systems remain, while also allowing cloud data access. Hybrid ERP is the perfect multi-sourced modular solution for the digital networked enterprise. It can make a world of positive difference in bottom-line results and end productivity of an organization.

Long Term Efficiency of Hybrid ERP Systems

New technologies that enhance digital transformation are on the rise. Internet of things, cloud computing and machine learning are the future in the business arena. In such a scenario, one question that comes to mind is about the long-term efficiency of hybrid ERP software. Managers want to be certain that they are making the right decision by opting for a hybrid approach. It should be a viable financial decision for the long term survival of the organization.

Well, the truth of the matter is that hybrid ERP software will lead the way forward at modern workplaces. Here are some strongly compelling reasons that throw light on why it is a smart business ideal to go in for hybrid ERP solutions that will deliver long-lasting efficiency:

Combination of the Best

Hybrid ERP platforms are both more realistic and contemporary. They try to blend in the best features of both cloud ERP and traditional on-premise systems. This enables hybrid software to be more agile and responsive. It can quickly respond to any unexpected changes in the corporate environment. These solutions automate most repetitive tasks, hence leaving managers available to focus on more strategic decisions.

Flexible and User-friendly

Most organizations need solutions that are flexible enough to suit their business requirements. This is one aspect that makes hybrid ERP systems very popular as long-term options. They basically follow a loose coupling system. Highly customizable, hybrid ERP systems make it possible for business firms to choose particular modules that they will require in the long run. This ensures seamless task flow management, and also avoids organizations from paying for unnecessary modules or features that are of no use to them.

Increases Core Focus and Functionality

There are certain growing industrial sectors that have not been serviced well by on-premise ERP software. Some of them include business services, digital media, advertising and other allied services. Most of these fields can be better served by professional hybrid ERP solutions. In fact, companies in these industries have majorly moved on to the cloud and the trend is expected to continue in the future too.

Looking for ERP Software? Check out SoftwareSuggest’s list of the best ERP software solutions.

Advanced Analytics

Hybrid ERP software has the capability to store and handle large volumes of data. It organizes and structures vital business information in a streamlined manner. Not only do hybrid ERP platforms store data, but they also help managers make complete sense of it. Real-time reporting and sophisticated analytics ensure that senior management can gain complete business visibility. Hybrid ERP systems facilitate content-rich human-machine interaction that reduces manual administrative work and fosters productivity.

Agile Two-Tier Architecture

Hybrid deployment of components from both on-premise and cloud ERP software is an innovative concept. It maintains a bi-modal structure that serves as a core building block for all business functions. One useful aspect of this diverse two-tier architecture is that it promotes micro-vertical functionality. This promotes the smooth flow of information between departments and enhances cross-functionality.


Hybrid ERP software can easily be integrated with many other existing organizational systems. Managing multiple API’s from multiple players is a huge plus point for organizations previously dealing with one platform. This allows uninterrupted and quick synchronization of business intelligence. Easy transfer and sharing of real-time information is a big reason that hybrid ERP systems are a must-have corporate tool.

Deciding to opt for hybrid ERP software is not a simple decision that can be taken lightly. Organizations must keep in mind the overall implications before making the switch. There is no doubt that moving over to hybrid ERP platforms will be highly cost-effective and efficient in the long run. It can help organizations gain a competitive advantage and increase business revenues exponentially.


Cost-Effectiveness of Hybrid ERP Systems

It is no secret that enterprise resource solutions can greatly revolutionize your workplace. However, when it comes to hybrid ERP systems, managers always have a nagging doubt – will it be worth their investment?

No business wants to waste time, money and effort in implementing a system that will not pay off in the future. SO that is why it is taking organizations time to adopt hybrid ERP technology. Well, the good part is that hybrid ERP platforms are indeed highly cost-effective. It brings down costs and ensures that organizations can capture the best from both worlds- cloud ERP solutions and on-premise platforms. Let us can look at the affordability and cost-effectiveness of variants:

On-premise ERP Solutions

This deployment model is traditional, yet highly popular. Here organizations run their applications on servers in their personal data centres that are located on-premise. ERP software can be purchased or leased out for a fee. On-premise ERP systems do not come cheap or affordable. Acquisition, maintenance and routine operations of servers are expensive and build up the budget for organizations.

On-premise ERP software definitely means a higher investment for companies – both in financial resources and time frame for recovery of investment. On-premise ERP may work for organizations that have robust in-house IT staff that can handle the maintenance of services. It would also be a good option for companies that have one single location, hence they may not find the need for investing in cloud services.

Cloud ERP Option

Cloud-based ERP systems have been adopted in most organizations as they have tremendous advantages. This dynamic solution can be shared equally between multiple users due to virtualization of resources. Cloud ERP tools can be hosted and managed internally or by independent third parties. They are very affordable as they help organizations achieve economies of scale.

Cloud ERP systems facilitate low cost, scalability and fast time frame for return on investment. They are affordable for start-ups and smaller businesses with lesser financial power. It is also a useful option for organizations with multiple worksites scattered over different geographical locations.

Hybrid ERP Systems

This novel new approach combines public cloud solutions and on-premise operating models. Companies can continue to operate and control critical business applications, yet have access to real-time data from the cloud. This largely reduces implementation costs and time-frames. It serves as a cost-effective option for organizations that do not have the infrastructure or expertise to manage personal servers.

Hybrid ERP tools are useful for organizations that already own an on-premise ERP system, but would like to add some specific cloud features. It is also a good idea for organizations that have on the main location with many nerve centres and warehouses. Hybrid ERP systems are also adapted to build up the accessibility of staff members, even on the move.

The need for an on-premise ERP system is abating as business and customers evolve in their thought processes. The radical new technology of hybrid ERP systems has taken the business world by storm. It is the ideal mixture and allows organizations to benefit from on-premise capabilities along with cloud access.

Moving over to hybrid ERP solutions can be quite a drastic decision. It facilitates the consistent movement of master data in order to enable advanced reporting and analytical capabilities. The solid functionality of on-premise features and agility of cloud applications help organizations increase their bottom line profits in key areas.

So, should businesses take the leap of faith towards hybrid ERP tools? The need to evaluate their business requirements and individual model to find out what works for them. With ERP technology, there is no one size fits all. There are many service vendors available in the market that can help companies customize their blended approach.

It definitely makes perfect business sense to move towards the hybrid effect. Cost-savings, responsiveness and agility are just a few of the benefits that firms can gain through hybrid ERP solution. They can boost operational efficiency and increase profitability parameters through a rapid return on investment!

Different Types of ERP System Modules and Their Uses

Sharad Bhardwaj is a content analyst at SoftwareSuggest. He loves to advise and help people. In leisure time he likes to be involved in sports activities and listening to music.

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  1. I’ve gone through your article and found the information regarding Hybrid ERP is very useful. The way you described how hybrid ERP is the best fit for any organization is recommendable.

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