27 Mar 2025
Managing a business in Singapore isn’t easy. High competition, rising costs, and the constant pressure to stay ahead not only nationally but globally – mean that companies need to stay in their most efficient mode. Hence, the Singapore government has many programs to encourage businesses to transform digitally. Many of them are for Enterprise Resource Planning (ERP) systems – which help to streamline business operations and improve productivity.
But before firms can enjoy the benefits of ERP software, they need to make a big decision to choose between local ERP (On-Premises) or a cloud-based ERP. That’s why we are here: let’s take a closer look at both options to help you make an informed decision.
What is Local ERP?
A local ERP, or on-premise ERP, is installed and hosted on the company’s own servers. Besides, companies need to prepare the necessary IT infrastructure and human resources to manage, update, and secure the system.
Advantages of Local ERP
The first thing to mention is, when companies have the ERP system hosted in-house, they will have full control over all their access to data, security, etc. This is a must for most businesses, especially those who handling highly sensitive information or work in industries that have strict regulatory requirements.
Secondly, local ERP solutions can be tailored to fit your business – like Synergix’s ERP – it’s 100% customisable. It will provide the best benefits for a business that has unique workflows, complex processes, or companies that need specific integrations.
For large companies handling massive amounts of data and transactions, local ERP is a good choice because it can offer better performance and stability. As the system runs on internal servers, it has more stable access and can be managed anytime by the internal IT team.
Limitations of Local ERP
Implementing a local ERP may require an initial investment beforehand in the software licenses, hardware and IT setup. Beyond that, businesses must also consider the ongoing maintenance costs. While some providers like Synergix will be responsible for ERP system updates, many others do not. Other things like security patches and troubleshooting require a dedicated IT team, which can be costly in the long run.
Lastly, since the system runs on internal servers, remote access is not straightforward. Businesses may need to invest in VPNs or remote desktop solutions to enable off-site access.
What is Cloud ERP?
Cloud-based ERP software is an Enterprise Resource Planning (ERP) system that is hosted on remote servers and accessed over the internet, rather than being installed on a company’s physical infrastructure. Unlike traditional on-premise ERP, cloud ERP enables organisations to manage their operations from anywhere, resulting in greater flexibility, scalability, and cheaper upfront expenses.
Not all cloud-based ERP solutions use the Software-as-a-Service (SaaS) concept. While some cloud ERPs use a multi-tenant SaaS structure (where several organisations share the same software instance), others, such as Synergix ERP, provide a dedicated cloud deployment for better control and customisation.
Advantages of Cloud ERP
Good news for those who have a tight budget, having an ERP based on cloud can reduce the need for large initial investments. This makes it a cost-effective choice, especially for small and medium-sized businesses (SMEs).
Since it is cloud-based, users can access the system from anywhere with an internet connection. This is particularly useful for businesses with remote teams or multiple office locations.
One important thing is business will not be worried about struggling to install new software updates as they are all handled by the ERP provider. There will also be no outdated software or cyber threats.
The last thing is as your business grows; a cloud ERP can easily scale with you. Whether you need more users, additional modules, or integration with new business tools, cloud solutions offer the flexibility to expand without investing in new infrastructure.
Limitations of Cloud ERP
It is easy to understand that businesses may be concerned about storing their data on third-party servers, especially companies handling highly sensitive information – they might still prefer an on-premises solution. However, at Synergix, we have been in the local Singapore ERP market for over 35 years, and we are proud to be one of the reputable cloud ERP providers that have implement robust security measures.
A small note: Cloud ERP requires a strong and stable internet connection. If your business operates in an area with unreliable internet, system access and performance could be affected.
Local ERP vs Cloud ERP: Key Differences
ERP Adoption in Singapore: A Snapshot
Singapore’s ERP software market has been experiencing robust growth. According to IMARC’s research, in 2023, the market was valued at USD 481.29 million and is projected to reach USD 910.77 million by 2029, growing at a CAGR of 11.05% during the forecast period.
This growth is driven by the increasing adoption of cloud-based solutions, as businesses seek flexibility and cost-efficiency. The demand for cloud ERP solutions has risen, eliminating the need for substantial upfront investments in IT infrastructure and providing seamless updates and maintenance.
Read more: Synergix ERP Customer Testimonials
Why Synergix ERP is the Best Choice for Businesses in Singapore
At Synergix Technologies, we understand that every business has unique needs. That’s why we offer a fully integrated and scalable cloud-based ERP solution, designed specifically for businesses in Singapore.
Why Choose Synergix ERP?
- Flexible to choose between on-premises and cloud ERP – ensures seamless access anytime, anywhere.
- Tailored for Singapore businesses – we align with local tax regulations, compliance requirements, and business practices.
- Seamless Integration – Synergix ERP can be integrated with multiple software.
- Government Grants Available – As a Pre-Approved Solution under the Productivity Solutions Grant (PSG), businesses in Singapore can receive up to 50% government funding when adopting Synergix ERP.
- Dedicated local support – our Singapore-based account managers ensure quick assistance whenever you need it.
Final Thoughts
Choosing between Local ERP and Cloud ERP depends on your business needs, budget, and long-term goals. There’s no universal right answer—what works best depends on your business needs, budget, and long-term growth plans. No matter which option you choose, investing in the right ERP system can help your business operate more efficiently, reduce costs, and support future growth.
If you’re looking for a powerful and reliable ERP solution, contact Synergix Technologies today. Let us help you streamline your operations and drive business success.
