CLOUD AND ON-PREMISES ERP SOLUTIONS IN THE CONDITIONS OF DIGITAL BUSINESS TRANSFORMATION

Abstract

The article examines current trends in the use of Enterprise Resource Planning (ERP) systems with a focus on architectural selection procedures that meet modern security requirements while ensuring flexibility, scalability, and long-term adaptability to dynamic business environments. Particular attention is paid to the balance between the need for continuous modernization of ERP solutions and the necessity to maintain control over critical business processes and sensitive data.

The purpose of the study is to analyze and compare cloud-based and on-premises ERP architectures in the context of business and public-sector requirements, operational adaptability, data preservation, confidentiality, regulatory compliance, and approaches to software maintenance and updates. To ensure a comprehensive and structured analysis, the evaluation criteria were grouped into seven key categories, including security and data protection, cost of ownership, scalability, flexibility of customization, regulatory compliance, system availability, and responsibility distribution between stakeholders. Each group of criteria is briefly analyzed, highlighting its impact on the overall effectiveness of ERP deployment.

The comparative analysis demonstrates that cloud and on-premises ERP architectures share a largely similar risk profile in terms of cyber threats and vulnerabilities; however, they differ significantly in the allocation of operational and security responsibilities between the service provider and the organization. As a result, the choice of architecture should be based not only on technological considerations but also on the organization’s internal competencies, risk tolerance, regulatory constraints, and typical operational scenarios.

The analysis and comparison of common threats and vulnerabilities inherent in both deployment models made it possible to develop risk profiles for typical ERP architecture selection scenarios. Based on these findings, practical recommendations were formulated regarding the appropriateness of cloud or on-premises ERP solutions for various types of enterprises. The proposed set of unified selection criteria can serve as a practical decision-making framework for organizations seeking to implement or modernize ERP systems in a secure and sustainable manner.