Older Enterprise Resource Planning (ERP) systems that require all computing hardware to be installed, maintained and customized by a company’s IT department at their own physical location. Many manufacturing companies have been abandoning their old legacy ERP systems because over time, these systems become too expensive to maintain and fail to deliver integrated, automated solutions that these companies need to compete and grow.

Also called “On-Premise ERP,” legacy ERP systems are often compared with cloud-based ERP software, which is less expensive to own, easier to customize, and is maintained by the ERP vendor. Legacy ERP systems typically lack the scalability, real-time on-demand data access and flexibility that Cloud ERP systems provide.