ERP basics
Cloud vs on-premise ERP
A cloud ERP runs on the vendor's servers and you use it in a browser for a monthly fee. An on-premise ERP is installed on your own server and your team looks after it. Open-source ERPs can be either.
Who it is for: Owners choosing their first ERP, and those whose server in the office is ageing.
Key points
- Cloud: no server to buy, updates and backups done for you, works from the factory, the office and home.
- On-premise: full control and no monthly fee, but you pay for the server, backups, security and upgrades.
- Whichever you pick, ask where the data is stored, how backups are tested, and how you get your data out.
What the law expects
- Daily backup in India
- Companies (Accounts) Rules, Rule 3(5), and Income-tax Rules 2026, r.46(8): keep a daily backup of the books on servers physically in India.
- Tell the registrar
- Rule 3(6): a company using a cloud provider reports its name and server location each year with the financial statements.
- Personal data
- Digital Personal Data Protection Act, 2023: the business stays responsible for customer and employee data even when a vendor hosts it.
In ARUKZ ERP today
Try it free- Cloud, in the browser
- Served over HTTPS
- Nightly database backups, last 14 kept
Not yet: The daily backup copy on servers in India is not live yet.
Rules checked on 7 November 2026. Laws and limits change; confirm with your CA before you act on them.