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EDI Cloud vs. On-Premise Software:
What’s the right fit for my business?
Today, digitization and globalization demand a more connected world. Those who want to continue to compete successfully in the future must continue to reduce costs, streamline processes, generate better data for business decisions, and retain their business partners over the long term. The basis for this is created by networking internal systems and applications – and across company boundaries, networking with business partners, authorities, and other stakeholders.
INPOSIA’s EAI (=Enterprise Application Interchange) and EDI solutions (=Electronic Data Interchange) connect your business partners professionally and according to the latest standards via electronic data exchange. This is done in a highly automated manner, in real-time, and using the latest techniques and processes. INPOSIA connects effortlessly to all ERP systems and links all EDI-capable business partners across industries, processes, and data formats. Thus, the fast and economical networking of your company is only one decision away from reality.
However, when choosing the right EDI solution, there are many different options, and not every solution is suitable for every company. Therefore, based on the size of a company, the sensitivity of its data, and the volume of messages, different integration needs arise. Other crucial factors include the extent of IT equipment, the know-how of the IT department, and specific performance requirements for systems. As an experienced EDI provider, we understand the different criteria and key differences that matter when choosing the right solution, and for this reason, we have highlighted here the key differences between an OnPremise solution and an EDI Cloud. Of course, we cannot determine the best solution setup that is best suited for your company at this point, but the following explanations should nevertheless serve as a “compass” on the right path for you.
Basically, a distinction can be made between on-premise and cloud. This means that you either purchase EDI OnPremise software or alternatively acquire usage rights to an externally operated solution in the form of cloud computing. Within the two categories, the mode of operation must be determined. These can be in-house operation, managed service or private cloud, and public cloud.
Own operation:
You operate your own software license in your own data center. Thus, you retain full control over your entire system. Appropriate know-how is a prerequisite. The overall responsibility for setup, operation, resources and performance lies with the company.
Managed Service:
INPOSIA operates your software license in the INPOSIA data center and takes care of the operation of your system according to conditions individually agreed with you beforehand. The operation of the EDI system can be done by you or by INPOSIA.
Public Cloud:
You use the INPOSIA EDI CLOUD services without your own software license. INPOSIA is responsible for meeting all performance benchmarks and setting up your EDI connections. The system resources are shared among the Public CLOUD users.
Private Cloud:
You use the INPOSIA EDI CLOUD services without your own software license. INPOSIA is responsible for meeting all performance benchmarks and setting up your EDI connections. Software and hardware resources are exclusively at your disposal.
The private cloud in particular is ideal for companies with complex requirements that use very sensitive data. This is because a private cloud focuses on protecting sensitive data and processes, which is why many companies use this mode of operation to meet individual performance metrics. Data in the private cloud is separated both physically and logically from the data of other data center users and is therefore secured to the maximum. Additional system configurations can be individually put together using freely selectable hardware and software components. Nevertheless, it must be emphasized that public clouds are not therefore insecure and data centers today are also able to meet the security requirements of companies when they use a public cloud.
In addition, a public cloud is usually a more cost-effective variant than the private cloud, since no investments have to be made in software and software updates. This makes the public cloud particularly suitable for companies that do not have explicit requirements for KPIs. The fundamental advantage of cloud EDI solutions is that, in contrast to on-premise solutions, they do not have any license costs, but a monthly flat rate covers all costs including support. It is important to weigh up whether the respective message volume meets the flat rate. Furthermore, monitoring tools are often integrated within EDI clouds, which help to provide a better overview of the processes and to identify optimization potential.
With cloud solutions, no software is purchased, but a service is used. The fees for using the services depend on the number of transactions and the system configuration. In both cases, however, the fees are transparent, traceable, and predictable, and calculable in advance.
This contrasts with on-premise software, which is usually purchased by companies in the form of licenses. The software is updated and modernized by means of software maintenance contracts. In addition to the initial license costs, annual fees for updates, upgrades, patches, and bug fixes are added on a percentage basis. However, these fees do not cover the operation of the software, as this is usually run by the commissioning company itself. For this purpose, the company provides the necessary hardware and software and the personnel for monitoring and organization at its own expense and responsibility. If technical support is required, an EDI provider such as INPOSIA can also be available via remote maintenance access.
If this is not an option for a company, for example, because the procurement of hardware and software does not appear to be economical or various resources are lacking, INPOSIA can also take over the installation, operation, and maintenance of the software in INPOSIA’s own data center for the client for a fixed monthly fee. In the so-called managed service, the client has full access to the software at all times but does not need to take care of operations-related activities and measures. In addition, INPOSIA is available anyway for support in terms of service and support.
Ultimately, each company should make its own decision on which type of EDI solution it chooses. Nevertheless, we hope that our blog post could provide you with a few more impulses for the correct assessment of your integration needs. INPOSIA will be happy to support you in word and deed in making the most target-oriented and economically sensible decision for you.
For further information, the product pages of our INPOSIA Suite or our INPOSIA Cloud can certainly help you. We are also available for a non-binding consultation. Our EDI experts will be happy to help you!
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Muzaffer Havcarci
INPOSIA e-Invoicing-Specialist
