Both have clear advantages — but the best option depends on your organization's size, infrastructure, compliance needs, and day-to-day reality.
This guide explains the differences, pros and cons, and adoption trends in the Philippines, and introduces a third option that's becoming the new standard: Hybrid ERP.
Cloud ERP runs on remote servers and is accessed over the internet.
You do not manage the hardware; the provider hosts everything.
Benefits of Cloud ERP:
- Lower upfront cost
- Fast deployment
- Automatic updates
- Accessible from anywhere
- Ideal for businesses with stable internet
- No need for IT personnel or servers
Disadvantages:
- Dependent on internet connectivity
- Outages can halt operations
- Limited customization in some systems
- Recurring monthly/annual fees
Best for:
- Startups
- SMEs in cities
- Service-based companies
- Teams working remotely
- Organizations prioritizing speed of deployment
On-premise ERP is installed on your own hardware, inside your office or data center.
You manage the servers, security, and maintenance.
Benefits of On-Premise ERP:
- Full control over data
- Works internally even without internet
- Supports heavy customization
- Predictable, long-term ownership
- Strong for agencies with strict data policies
Disadvantages:
- High upfront costs
- Requires IT staff
- Hardware maintenance and replacements
- Slower to update
- Not ideal for multi-branch operations
Best for:
- Government offices
- Corporations with IT departments
- Regulated industries
- Organizations with strict data residency requirements
Philippine organizations face unique challenges:
✔️ Unstable internet, especially outside NCR
Many ERPs stop working during outages — a major issue for retail, distribution, and government workflows.
✔️ Multi-branch operations
Cloud-only systems struggle when some branches have weak connectivity.
✔️ Limited IT personnel
Many SMEs and cooperatives cannot manage servers.
✔️ Government compliance and audit needs
Some offices require on-premise storage and full audit trails.
Because of these factors, both cloud-only and on-premise-only models fail in certain situations.
A hybrid ERP combines cloud and on-premise benefits into one system.
How Hybrid ERP Works:
- Operates smoothly offline during outages
- Syncs automatically when internet returns
- Stores critical data locally
- Pushes analytics & dashboards to the cloud
- Supports remote access for managers
- Doesn’t require heavy IT infrastructure
Why Hybrid ERP is rising in the Philippines:
- Works in cities *and* provinces
- Supports field operations
- Perfect for multi-branch retail, distribution, cooperatives, and LGUs
- Avoids downtime losses
- More affordable than full on-prem setups
- More reliable than cloud-only setups
Hybrid is becoming the default choice for organizations wanting flexibility, reliability, and modern features.
Likha ERP is built for Philippine businesses and supports all three deployment models:
✔️ Cloud (for speed and accessibility)
- No servers needed
- Automatic updates
- Great for SMEs and service teams
✔️ On-Premise (for control & compliance)
- For government offices
- For highly regulated industries
- For organizations with strict data governance
✔️ Hybrid (the most recommended option)
- Works offline
- Real-time syncing
- Best for retail, distribution, cooperatives, schools, LGUs
- Zero downtime during outages
- Cloud dashboards for management
Whatever your setup, Likha ERP adapts to your operations — not the other way around.
Choose Cloud ERP if:
- Your team is small or remote
- You want quick deployment
- You want lower upfront cost
Choose On-Premise ERP if:
- You’re in a regulated environment
- You require strict data control
- You have IT experts on staff
Choose Hybrid ERP if:
- You have multiple branches
- You operate in areas with weak internet
- Downtime would cost you money
- You want cloud convenience + offline safety
Choosing the right ERP is one of the most important decisions for your organization’s growth.
Let us help you assess the best setup for your operations.
Equip your business with a system that works online, offline, and everywhere in between.
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LikhaERP is validated for security through independent Vulnerability Assessment and Penetration Testing (VAPT). Tested under OWASP standards, our platform ensures robust application-level resilience and secure operations.