The next step is to install a server. Depending on the complexity and size of the software, you will have to setup a server on your own. You will have to buy all the server equipment and computers. Now it's time to hire a professional administrator to set it up for you. However, it doesn't end there. You need to keep that administrator permanently to monitor well-being of your server. In case if your server comes under virus attack or something similar, you might lose all your data. So, the risk is very high here. You are entrusting all your data with couple of administrators. May be they are able to preserve it intact. But then again, you will always be worried about the security since it's your responsibility.
That's completely avoided in the case of a web based system as they are answerable to the security, and therefore they have people working round the clock to ensure the security of your data. Even if something goes wrong, they may have taken your backup already. So, as long as you are doing business with a trustworthy vendor, you don't have to worry much about the security part of your software.
Implementation cost is another NO-NO when it comes to a server based ERP. Web based ERP model is ideal than Served-based ERP model when we consider the implementation cost. As we can see, you will have to hire couple of IT professionals to do the implementation for you. Although they will be able to get you a fully functional customized system in the end, you may have to wait several months, even up to 2 years to see the final product. The first question is that, are you able to wait that long? The second question is that, are you able to pay those professionals for such a long time? If the answer is NO for both then web based ERP model is ideal than server based ERP model. Even after the implementation, you will have to keep some of these professionals to look after the maintenance and future changes. Also, you will be required to reinvent the system several times as you go along. If you had opted for a web based model, you would never have to worry about that as they constantly upgrade their system.

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