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March 10, 2026

On-premises or hosted ERP? How to choose the right infrastructure for a WinMENTOR ENTERPRISE implementation

More and more clients who buy the WinMENTOR ENTERPRISE ERP system through Next iSolutions ask us what their implementation options are in terms of IT infrastructure.

Unlike applications designed exclusively for the cloud, WME does not have a native SaaS version. This means that where the application runs depends on the project architecture: either on the company's own IT infrastructure, or on outsourced infrastructure, in a data center or an Infrastructure-as-a-Service (IaaS) cloud.

In practice, the decision comes down to two main scenarios: an on-premises implementation, on the company's own servers, or hosting on external IT infrastructure (hosting or cloud). Both options are valid and widely used, but they differ significantly in architecture, performance, cost and the level of operational responsibility.

How the system architecture differs

In the on-premises option, the ERP system runs on servers located at the company's premises or on IT infrastructure managed directly by the in-house team. In practice, the organization owns and controls all the technical components the application needs:

  • a server, with a configuration suitable for running WME
  • a server operating system, Windows or Linux
  • a virtualization platform: Hyper-V, Proxmox, open source
  • a database server
  • local backup solutions

The advantage of this model is full control over the infrastructure and the data. At the same time, the company has to manage every technical component, from hardware maintenance to security and updates.

In the cloud or IaaS scenario, the ERP application runs on virtual machines hosted in a professional data center or on a cloud platform such as Amazon Web Services or Microsoft Azure.

Here, the hardware no longer belongs to the company, but the organization keeps control over the application, the databases and user access. The infrastructure provider takes care of equipment availability, connectivity, physical security and redundancy.

Latency, access and performance

For an ERP system, the performance users perceive depends mainly on network latency and on the resources allocated to the server.

In an on-premises implementation, users working on the same local network get very low latency and fast response times. However, if there are branches or remote users, access usually requires secure VPN connections, which can complicate the architecture.

In the cloud, the application becomes much easier to reach for geographically distributed teams. Users can access the system from several locations over secure connections, and data center infrastructure is optimized for traffic and availability. In most cases, performance differences are minimal as long as the internet connection is stable and fast.

Data control and data location

Another important criterion in choosing the infrastructure is where the data is stored and how much control you have over it.

In the on-premises scenario, the data stays within the company's infrastructure. This offers maximum control and is sometimes preferred by organizations with strict internal security or compliance requirements.

In the cloud, the data is stored in an external data center, but you can choose its location, for example in Europe or even in Romania. In addition, modern data centers offer physical and logical security standards that are hard to replicate in a typical company IT setup.

Backup and business continuity

ERP systems run a company's critical processes: accounting, inventory, production and invoicing. That is why the backup and disaster recovery strategy is essential.

In an on-premises infrastructure, the company must implement and manage all protection mechanisms, including:

  • regular database backups
  • off-site storage for backup copies
  • UPS systems for power outages
  • data recovery and restore procedures

In the cloud, many of these mechanisms are available out of the box. The infrastructure usually includes redundant storage, replication between data centers and automated backup services, which greatly simplifies business continuity management.

What the cost structure looks like

One of the most important factors in choosing the infrastructure is the financial model.

An on-premises implementation generally requires a larger upfront investment. The company has to buy hardware, operating system licenses and possibly virtualization platforms and backup solutions. On top of that come operating costs such as equipment maintenance, energy consumption and infrastructure administration. You also need either an in-house IT team or an outsourcing contract with an IT company to manage the infrastructure.

In the cloud, the model is different: you pay for infrastructure as a monthly subscription, either fixed or based on the resources you use. Costs include computing resources, data storage, backup and any software licenses needed. The major advantage is flexibility: resources can be scaled up or down as needed, with no upfront investment in hardware.

What a company should consider before deciding

Choosing between on-premises and cloud is not just a technical decision; it is a strategic one. Organizations usually weigh several factors:

  • company size and available budget
  • the number and location of users
  • security and compliance requirements
  • the in-house IT team's capacity to manage infrastructure
  • plans for growing the system

In some cases, on-premises is the better fit, especially when the necessary equipment and licenses already exist. In others, the cloud offers flexibility, easy access and more predictable operating costs.

There is no universal answer for implementing an ERP such as WinMENTOR ENTERPRISE. The right infrastructure depends on each organization, on how its teams work and on its long-term IT strategy.

With our experience in ERP implementations, Next iSolutions can adapt the project architecture to each client's requirements and existing equipment. We can review your current infrastructure together and find the best solution, whether that means running the system on your own infrastructure with cloud backup (for example in Amazon Web Services) or moving entirely to cloud infrastructure, for companies that would rather not deal with IT administration anymore.

Whichever scenario you choose, the goal stays the same: a stable, secure and fast ERP system that supports the critical processes of your business and its long-term growth.

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