As businesses increasingly rely on data to plan, forecast, and measure performance, Enterprise Performance Management (EPM) systems have become an important foundation for CFOs and FP&A to make quick and accurate decisions. However, not all EPM systems are the same. The two most popular models today are Traditional EPM (on-premise) and Cloud EPM Understanding the differences between them helps businesses choose the optimal solution in terms of cost, performance, flexibility and future scalability.
This article analyzes in detail the differences between Traditional EPM and Cloud EPM, from architecture, cost, security, to implementation efficiency - and at the same time suggest suitable models for Vietnamese businesses through case studies from Sactona, an EPM platform distributed by Bizzi.
The trend of converting from traditional EPM to Cloud EPM
For comparison Traditional EPM and Cloud EPM To fully understand, it is necessary to first understand what EPM is, its role in modern enterprises and why the Cloud EPM model is increasingly dominant. This is the foundation for enterprises to consider strategies to transform their performance management systems.
1. What is EPM and its role in modern business?
EPM (Enterprise Performance Management) is an enterprise performance management system used for planning, forecasting, budgeting, financial consolidation and performance evaluation. It is a platform that helps businesses operate based on data with core functions:
- Planning and budgeting: planning and budgeting for the entire business
- Forecasting: forecasting revenue, costs, cash flow, profits
- Financial consolidation: consolidate financial reports from multiple entities
- Reporting and analytics: performance reporting and gap analysis
In modern business, EPM plays a role as “financial brain” , connecting data from ERP, CRM, BI and operational systems to help CFO and FP&A have a holistic view and make timely decisions.
2. EPM classification by deployment model
When talking about On-Premise EPM vs Cloud EPM, are essentially two different implementations of the same type of system. Each model carries a different operating philosophy and cost structure.
The two main types are:
Traditional EPM (on-premise)
- Installed at the enterprise data center
- Dependent on internal infrastructure
- Need IT team to maintain, service and backup
Cloud EPM
- Deploy as SaaS or PaaS
- No installation required, cloud-based operation
- Automatic updates and faster API integration
These differences affect cost, deployment speed, scalability, security, and user experience – factors that are important when comparing cloud EPM with traditional EPM.
3. The trend of switching to Cloud EPM
In the past 5–10 years, the trend of switching from traditional EPM to Cloud EPM has been strong globally. The reason lies not only in cost, but also in the ability to meet the new requirements of modern finance: fast, flexible, real-time and integrated.
Some key drivers:
- Businesses move from CapEx (capital investment) to OpEx (operating expenses)
- The demand for rolling forecasts, scenario planning, and what-if analysis is growing rapidly.
- Applying AI and machine learning in forecasting and analyzing discrepancies
- The remote, hybrid work model requires systems that can be accessed anywhere
Major vendors in the Cloud EPM segment include: Oracle EPM Cloud, SAP Analytics Cloud, Workday Adaptive Planning, Anaplan and Sactona – Japanese EPM solution distributed by Bizzi in Vietnam , designed with the finance team in mind rather than the IT team.
What is traditional EPM (on-premise EPM)? Advantages and limitations
Before deciding to move to Cloud EPM, many businesses are still using traditional EPM and are wondering if it is the right time to change. Understanding how on-premise EPM works, its advantages and limitations will help to visualize the overall picture.
1. How traditional EPM works
Traditional EPM is installed directly on the enterprise's internal infrastructure:
- Software runs on a server located in the office or private data center
- The IT team is responsible for installation, configuration, maintenance and upgrades
- Backup, security, and resource management are all in the hands of the business.
This model is quite popular with corporations that have invested in infrastructure early or in the context of underdeveloped Cloud, so Traditional epm and cloud epm coexist in many organizations.
2. Advantages of the on-premise model
Although it is gradually giving way to Cloud EPM, on-premise EPM still has certain advantages, especially in industries with strict security requirements:
- Control all data within the internal system
- Deep customization possible for specific processes and logic
- Suitable for organizations with internal regulations that do not allow cloud use
For some large enterprises, this model is still maintained because of heavy investment in infrastructure and people.
3. Limitations of Traditional EPM
However, the self-operating model itself creates many bottlenecks:
- Difficult to scale when data and users grow rapidly
- Software upgrades are expensive and complicated.
- Need a strong IT team, large personnel costs
- Limited remote access and flexible working support
- Not suitable for real-time forecasting or rapid deployment requirements
This is why when comparing cloud EPM with traditional EPM, CFOs often lean towards Cloud EPM if they want to optimize costs and speed.
What is Cloud EPM? Modern performance management solution
If on-premise EPM represents the old generation, then Cloud EPM is the typical face of the new generation – where EPM is associated with cloud, automation and real-time analysis.
1. What is Cloud EPM and how does it work?
Cloud EPM is a version of EPM deployed on a cloud platform:
- Users only need a web browser to access
- The vendor is responsible for operation, updates, and maintenance.
- Businesses do not need to invest in separate servers, storage, or networks for EPM.
All EPM data and models are centrally managed and can be integrated with ERP, CRM, BI and other systems via API or data synchronization mechanism.
2. Outstanding advantages of Cloud EPM
When comparing cloud EPM with on-premise EPM, the advantages of cloud are often clear:
- Flexible expenses (OpEx), pay monthly or annually
- No initial CapEx investment required for infrastructure
- Automatic update, no need to worry about manual upgrade
- Scalability on demand, not limited by internal servers
- Access anytime, anywhere, support remote working, multiple devices
- Easy integration with existing systems
Cloud EPM helps FP&A teams and CFOs focus on modeling, analytics, and decision-making, rather than worrying about technical issues.
3. Challenges when using Cloud EPM
Despite its many advantages, Cloud EPM also presents some challenges that businesses need to consider:
- Concerns about data security when uploading to the cloud
- Depends on stable internet connection
- Requires thorough vendor assessment of security certifications and industry compliance capabilities
- Some businesses want to keep highly sensitive data on-premise, leading to the need for hybrid EPM.
Detailed comparison of traditional on-premise EPM and Cloud EPM
To answer the question completely On premise epm vs cloud epm which one should you choose?, it is necessary to weigh the two models against specific criteria: deployment, cost, security, integration, and performance.
1. Comparison by deployment model and cost
The table below summarizes the comparison of cloud EPM with on-premise EPM across important dimensions:
| Criteria | On-premise EPM | Cloud EPM |
|---|---|---|
| Deployment model | Internal installation, using private server | SaaS/PaaS on cloud platform |
| Expense | High CapEx (server, license, infrastructure) | Flexible OpEx (subscription) |
| Update | Manual, by version | Automatic, continuous |
| Infrastructure | Self-operated business | Vendor is responsible |
| Implementation time | 6–12 months | 2–3 months |
| Complexity | High, multi-stakeholder | Lower, configuration is key |
Looking at the table, it can be seen that Cloud EPM is suitable for businesses that want to deploy quickly, control costs well and reduce the load on IT.
2. Compare performance and flexibility
Aside from cost, when comparing cloud EPM with traditional EPM, performance and flexibility are two very important factors:
- Cloud EPM is often optimized according to the vendor's cloud infrastructure, allowing for more data to be processed in less time.
- Ability to run multiple scenarios in parallel, better support for rolling forecasts
- Easily increase the number of users, units, and reporting contexts without manually upgrading the server
Meanwhile, on-premise EPM will soon reach its limits as data and analytics requirements increase.
3. Compare integration and expansion capabilities
A modern EPM system needs to live with the enterprise's data ecosystem, including ERP, CRM, BI, data warehouse, etc. Cloud EPM has clear advantages:
- Integration via API, available connectors
- Supports modern connection standards
- Easy to extend to many other systems without rewriting the whole thing
On-premise EPM usually:
- Must rely on IT team to develop custom integrations
- Time consuming testing and deployment
- Difficult to maintain as the system becomes more complex
Which EPM model is more economical and secure?
When considering Traditional epm and cloud epm, CFOs often ask two questions: “What is the total cost of ownership (TCO)?” and “Is security assured?”. This section focuses on answering those two questions.
1. Total cost of ownership (TCO) structure
With on-premise EPM, the cost is not just the software license but also includes:
- Buy server, storage, network
- Invest in backup systems, physical and network security
- Recruit, train and maintain IT team
- Periodic upgrade costs
With Cloud EPM, costs are often simpler:
- Pay monthly/yearly, by number of users or modules
- No server purchase, no infrastructure maintenance worries
- IT focuses on configuration and rights management, not on “hugging” the system.
As a result, the total cost of ownership of Cloud EPM is often significantly lower in the medium and long term.
2. ROI of Cloud EPM
Cloud EPM helps shorten the time:
- Deployment
- Planning
- Close forecast
- Prepare management reports
As the processing time for these processes is reduced from weeks to days, businesses can easily achieve ROI within 6–12 months, especially with optimized EPM solutions like Sactona.
3. Data Security and Compliance in Cloud EPM
In terms of security, many Cloud EPMs today meet higher standards than most home-built systems:
- ISO 27001, SOC 2, GDPR certification
- Encrypt data at rest and in transmission
- Multi-factor authentication
- Backup and disaster recovery system according to international standards
Businesses still need to carefully evaluate vendors, but they can no longer assume that “on-premise is safer than cloud” as before.
Benefits of Migrating from Traditional EPM to Cloud EPM
When you understand clearly On Premise EPM vs Cloud EPM, the next question is: “If switching to Cloud EPM, what benefits does the business get in practice?”.
1. Speed up planning, budgeting, and forecasting processes
Cloud EPM helps:
- Automatically collect data from ERP, CRM, operating systems
- Shorten planning and forecasting cycles
- Support continuous rolling forecast instead of static budget
This helps businesses respond more quickly to market fluctuations.
2. Increase collaboration and decision-making capabilities
When all departments work on the same EPM platform:
- Everyone sees the same set of data
- Reduce debate over data discrepancies
- CFO, CEO, FP&A, sales, supply chain can discuss on the same dashboard
This is a good platform to improve the quality of management meetings and decision making.
3. Support financial digitalization strategy
Cloud EPM is more than just software, it is a central piece in a digital finance strategy:
- Connect to RPA, BI, data lake
- Advanced analytics support
- Create a platform to test new forecasting models
How to choose the right EPM model for your business
Not every business needs or is a good fit for Cloud EPM right away. Choosing between Traditional epm and cloud epm need to be based on the specific context.
1. When to choose on-premise EPM
On-premise EPM is still the right choice if:
- Businesses in industries with legal requirements requiring internal data storage
- The current system has invested heavily in on-premise infrastructure.
- The IT team is strong enough and capable of maintaining the system long term.
However, businesses should still periodically evaluate to see when it makes sense to transition to Cloud EPM.
2. When to choose Cloud EPM
Cloud EPM is a good choice if:
- Medium and large businesses want to accelerate planning and forecasting
- Want to reduce dependence on IT
- Want to optimize costs and flexible spending model
- Want to deploy quickly, within 2-3 months
This is a common situation in many Vietnamese businesses in the financial digital transformation stage.
3. Hybrid EPM solution – the middle ground
Hybrid EPM combines:
- Store extremely sensitive data on internal systems
- Using Cloud EPM for planning, forecasting, and analytics
This model helps take advantage of the cloud while still meeting internal compliance requirements.
Sactona – new generation Cloud EPM solution distributed by Bizzi
In the picture Traditional epm and cloud epm, Sactona is a typical example of “finance-friendly” Cloud EPM, developed by Outlook Consulting (Japan) and distributed in Vietnam by Bizzi.
Some highlights:
- Excel-like interface, keeping Excel formulas
- No coding required, FP&A can build models themselves
- Fast deployment, only 2–3 months for basic projects
- Only need 1-2 internal staff to coordinate with the implementation team
- Ultra-fast ERP integration via API or file
- Supports rolling forecast, scenario planning, driver-based planning
Businesses such as Panasonic, Fujifilm, and Marubeni Logistics have deployed Sactona to accelerate planning and forecasting, reducing forecast lead times to approximately 5.5 days.
Cloud EPM – the future of enterprise performance management
Traditional on-premise EPM used to be the norm, but in a landscape of increasing change, Cloud EPM is becoming a strategic choice for many businesses. When comparing cloud EPM with traditional EPM, the differences in deployment speed, cost, scalability, and real-time support are clear.
With solutions like Sactona distributed by Bizzi, Vietnamese businesses have the opportunity to access the new generation of Cloud EPM, which is both modern and close to familiar financial practices (Excel), while optimizing costs and implementation time.
If you are considering On Premise EPM vs Cloud EPM For your business, now is a good time to start testing, piloting and gradually moving towards a more flexible, intelligent and sustainable EPM model.
Sign up for a Sactona demo to see firsthand how Cloud EPM operates on your real-world data here
