In business, the path to success is often paved with calculated risks, bold decisions, and the willingness to embrace the unknown. But as every seasoned business owner knows, not all risks are equal. While some risks propel growth, others can hinder progress, particularly those associated with sticking to the status quo. Every small to mid-sized business grappling with an on-premises ERP system should ask: How much risk are you willing to take, and more importantly, do you fully understand the consequences? Is clinging to the status quo of your Sage system a gamble you’re willing to make? And ultimately: What is your acceptable level of risk? 

The Hidden Risks of On-Premises Sage ERP

As technology evolves, so too should your measure of acceptable risk. On-premises Sage accounting/ERP systems once stood as the pinnacle of security and control. However, as technology has evolved, so have the risks associated with maintaining these systems. Here’s how the perceived safety of on-premises ERP can deceive you: 

  • Security Vulnerabilities
    Older systems often lack the agility to adapt to emerging cyber threats. Patching and updating become increasingly complex, leaving your business exposed to potential breaches.
  • Compliance Challenges
    Modern compliance mandates like SOC and MFA require technological changes, continuous updates, and ongoing monitoring. It is becoming increasingly difficult (and costly) for on-premises ERP systems to adapt. 
  • Cost Burden
    Maintaining, securing, and updating an on-premises system can be financially draining, diverting resources from innovation and growth. 

Understanding Acceptable Risk 

In the context of your Sage ERP, we’re using the term acceptable risk to refer to the level of risk you are willing to tolerate by not migrating to a more secure and flexible private cloud hosting model. This requires your organization to perform a careful examination of: 

  • Potential Threats
    Are you aware of the security threats that your current system is exposed to? Are you adequately investing in the technology tools and expertise required to protect you from those threats? Are you comfortable with the risks associated with your system’s vulnerabilities? 
  • Compliance Readiness
    Can your existing system adapt to new compliance mandates like SOC, SOX, MFA, HIPAA, and CCPA without significant time and financial investments? 
  • Business Impact
    How would a security breach or compliance violation affect your business reputation, operations, and bottom line? 

Mitigating the Risks With the Private Cloud Hosting Model 

Moving to a private cloud hosting model is an effective way for businesses to mitigate the risks associated with Sage ERP while continuing to leverage the legacy and ongoing investments they’re making in those applications.  

Transitioning to private cloud hosting uses a “lift and shift” approach. Lift and shift is a strategy used in information technology, particularly in cloud migration. It refers to moving an application or operation from one environment to another without modifying its design, architecture, or functions. 

Here’s a high-level look at what the lift and shift process entails: 

Lift: This part of the process involves taking the existing applications, data, and operations from the current environment, whether it’s an on-premises data center or even another cloud provider. This is done without changing the code, structure, or architecture. 

Shift: This involves relocating the lifted applications, data, and operations to a new environment, such as a private (or public) cloud. Again, this is done without modifying or optimizing the applications for the new environment. 

The lift and shift approach can be an attractive option for organizations looking to quickly move to the cloud or another environment, as it typically requires less time, effort, and cost than replacing the applications. Businesses often use it as a first step in a larger cloud migration strategy.

Moving your Sage ERP and other critical business applications from an on-premises server to a private cloud hosting provides is not about abandoning the familiar — it’s about embracing a future that offers: 

  • Enhanced Security
    Private cloud providers specialize in combating the latest cyber threats, ensuring your data remains secure. 
  • Compliance Agility
    Cloud-based ERP enables you to adapt quickly to new regulatory requirements, minimizing the risk of non-compliance. 
  • Scalability and Flexibility
    Private cloud hosting accelerates your ability to incorporate additional applications and productivity tools that help your business scale and adapt, ensuring your technology never holds you back. 

How Much Risk Are You Willing to Accept?

Remaining with an on-premises ERP system presents some clear —and some hidden — risks and limitations. It’s a decision that requires you to honestly evaluate how much risk is acceptable for your business. 

Are you willing to accept the security vulnerabilities? The compliance challenges? The potential cost burden? The time to ask these questions is now. Transitioning to a private cloud hosting model is a strategic and surprisingly simple move that aligns with modern business demands, offering enhanced security, compliance, and flexibility. 

Don’t let acceptable risk turn into unacceptable consequences. Explore the opportunities private cloud hosting offers and position your business for a future defined not by limitations but by possibilities. Virtual private cloud hosting of your Sage ERP application can mitigate many risks, allowing you to continue growing and scaling your business while maximizing your software investment. Learn more about Sage Cloud Hosting: