Written by Tyler Bower from our cloud hosting partner Cloud@tWork

Image by Freepik

A new paradigm is emerging as forward-thinking businesses consider private cloud hosting a more effective option.

Your Sage ERP application plays an essential role in managing core business processes. Still, as technology advances and your business needs evolve, the traditional on-premises deployment creates roadblocks in meeting the demands of your modern organization. For example, remote access barriers, costly server maintenance, and limited scalability are common challenges with on-premises applications. It may feel like you have two options—keep doing what you’re doing or migrate to a cloud-based next generation ERP application—and neither option feels right.

A third option is available—one that combines the best of both. It’s Sage virtual private cloud hosting—an innovative approach that ushers in a new era for Sage ERP customers. This approach offers the perfect blend of security, scalability, and flexibility, making it an ideal option for modernizing your organization’s ERP infrastructure while continuing to leverage the value proposition you’ve spent years building. Think of it as the cloud on your terms.

What are the distinct advantages of private cloud hosting for Sage ERP users? What will your ERP future look like? How confident are you in your plans for business continuity, cybersecurity protections, and compliance mandates? How do you make the move to a private cloud? We’ll address and answer these questions and more in an upcoming series of articles highlighting Sage in the Cloud. But before we get there, let’s start at the beginning—what is private cloud hosting, what makes it different from public cloud hosting, and what makes it the best option for Sage ERP users?

What is private cloud hosting?

Private cloud hosting refers to a cloud computing model where dedicated cloud infrastructure is used exclusively by a single organization. In a private cloud environment, the infrastructure, including servers, storage, and networking resources, is designed and managed specifically for your organization’s use.

While individual companies can establish and host their own private clouds, small to medium-sized enterprises typically partner with a virtual private cloud service provider to provide the necessary physical and virtual infrastructure. Some private cloud hosts specialize in specific sectors. Cloud at Work, for example, specializes in hosting Sage ERP and companion applications. Many also offer additional, value-added services, such as hosting Microsoft Exchange.

How’s it different from public cloud hosting?

Virtual private cloud hosting differs from public cloud hosting in several key ways.

A virtual private cloud is a cloud environment located within a public cloud. In a private cloud, services and infrastructure are hosted off-site, just like in public cloud hosting. However, with private cloud providers, users receive their own private section within the public cloud that is isolated from other users and managed by the provider. Some private cloud providers specialize in specific industries or niche markets. Cloud at Work, for example, specializes in hosting Sage ERP and complementary applications.

The private cloud environment allows for a higher level of security and privacy compared to a public cloud because you are not sharing resources with other users. Also, you get a certain level of control over your network settings, similar to operating your own private data center, but without the hassle of maintaining the infrastructure.

On the other hand, public cloud hosting is a service where a provider (think AWS and Google Cloud) makes resources, such as applications, storage, and virtual machines, available to the general public over the internet. These resources are shared among multiple users (also known as multi-tenancy), and you have less control over your data and how it’s stored and secured. In addition, small and medium-sized businesses like yours do not deal directly with a public cloud host. Instead, you’ll work through several layers, including a managed services provider, none of which understands your Sage application.

Why should I consider private cloud hosting for Sage ERP?

You can unlock many benefits by shifting your Sage ERP system to a private cloud environment, including:

  • Scalability and flexibility: On-premises ERP systems are notorious for their limited scalability, making it challenging for businesses to accommodate growth or sudden surges in demand. Private cloud hosting enables organizations to scale their ERP infrastructure (up and down) effortlessly, ensuring you can adapt to changing business needs without disrupting operations.
  • Enhanced security and data protection: On-premises ERP systems require you to invest heavily in robust security measures and regularly update them to counter evolving cyber threats. By leveraging private cloud hosting, you gain access to dedicated security professionals, cutting-edge encryption protocols, and proactive monitoring, ensuring your critical data remains safe and protected.
  • Improved accessibility and collaboration: With an on-premises ERP system, accessibility to remote employees or business locations is challenging. With private cloud hosting, employees can access your Sage ERP applications and data from anywhere, using a range of devices.
  • Business continuity and disaster recovery: Unforeseen events such as natural disasters, power outages, or hardware failures can severely impact on-premises ERP systems, leading to costly downtime and even data loss. Private cloud hosting ensures data redundancy, backup solutions, and disaster recovery mechanisms, safeguarding your business against disruptions and minimizing downtime.
  • Maintenance and updates: In private cloud hosting, your managed service provider or the hosting provider take responsibility for infrastructure maintenance and updates, reducing the burden on your organization’s IT staff. And importantly—you can control when (and even if) your Sage ERP software is updated.

Future-proofing your business

For decades, on-premises ERP systems have been the go-to solution for businesses, offering a sense of control and familiarity. However, as technology advances and the demands of the business environment intensify, traditional on-premises ERP systems are revealing their limitations. Virtual private cloud hosting of your Sage ERP application can overcome many of these limitations, allowing you to continue growing and scaling your business while maximizing your software investment. Learn more about Sage Cloud Hosting by contacting a member of the D&A Team.