Cloud or On-premises deployment provides flexibility in how an ERP system is hosted and operated, allowing businesses to select the appropriate deployment model based on their needs, budget, and IT infrastructure. Cloud deployment is hosting the ERP system on remote servers offered by cloud service providers, which improves scalability, cost-efficiency, and accessibility. On-premises implementation, on the other hand, involves installing and executing the ERP system on local servers on the organization’s grounds, giving it more control over security and customization. Both methods have advantages, and the decision between the two is influenced by the organization’s security requirements, budget, and IT capabilities.