Tally, Tally ERP, Tally On Cloud

Tally on Cloud vs. Tally On-Prem: What’s Better for SMEs

Tally on Cloud vs. Tally On-Prem
author
Published By Sneha Singh
Sameer Yadav
Approved By Sameer Yadav
Published On August 25th, 2025
Reading Time 5 Minutes Reading

Tally ERP serves as the core of accounting and financial management for small and medium enterprises (SMEs). In the past, companies ran Tally on their own computers or servers. But now, as businesses need to work from anywhere, grow , and save money, Tally on Cloud has become a big deal.

 

This leaves the decision-makers—IT heads, CTOs, and finance managers—with a pertinent question: Should they continue to use Tally On-Prem or migrate to Tally on Cloud?

 

This article takes a look at the pros and cons of both options in order to assist SMEs in choosing the setup best suited for their business objectives.

 

What is Tally On-Prem?

 

Tally On-Premises (On-Prem) means you put Tally software on your company’s own servers or desktop computers.

 

Good things about Tally On-Prem:

 

  • Total Control: Your data stays on your own systems.
  • Buy Once, Use Forever: Pay up front and use as long as you want.
  • Works Without Internet: You don’t need to be online to use it.
  • Not-so-good things about Tally On-Prem:
  • Costly IT Upkeep: Needs in-house tech staff to handle servers.
  • Restricted Access: Staff can use it on office computers.
  • Growth Challenges: To grow, you require costly hardware upgrades.
  • Outage Risks: Blackouts or equipment failure can disconnect access.

 

What is Tally on Cloud?

 

Tally on Cloud offers businesses the ability to place Tally ERP on a secure cloud server. You can access it whenever you need, from anywhere so long as you have an internet connection. NetForChoice Tally on Cloud assists small and medium-sized businesses by utilizing world-class data centers, hosting, and securing everything as much as large businesses do.

 

Positive things about Tally on Cloud:

 

  • Work from Anywhere: Employees can log in from remote locations.
  • No Maintenance Required: You don’t need to employ IT individuals—NFC handles everything.
  • Scales with You: You can add additional power when your business expands
  • Keeps Things Safe: It scrambles data, checks who you are in different ways, and saves copies.
  • Keeps Running: It works 99.995% of the time and can bounce back from big problems.

 

Not-so-good things about Tally on Cloud:

  • Needs Internet: You must have a good connection.
  • Expenses Continue: You shell out money or .

 

Tally on Cloud vs. Tally On-Prem: How They Compare

Feature Tally On-Prem Tally on Cloud:-

  • Accessibility Office systems You can access from anywhere
  • Scalability Hardware restricts expansion It adjusts to your needs
  • Security In-house protection has weaknesses Cloud protects with SOC
  • Cost Model Initial license plus equipment You pay as you go, no hardware
  • Maintenance In-house IT takes care of updates NFC team handles everything
  • Uptime Equipment breakdowns cause outages Tier IV DCs guarantee 99.995% availability

 

Why Small Businesses Should Pick Tally on Cloud

 

SMEs need flexibility and to cut costs. Tally On-Prem suits businesses with basic IT needs, but Tally on Cloud offers clear benefits:

 

  • It enables remote work—Ideal for hybrid and spread-out teams.
  • It lowers IT costs—You don’t need servers or maintenance.
  • It ensures regulatory compliance—NetForChoice keeps data local for Indian businesses (It complies with RBI and GST rules).
  • Future-Readiness—Grow your business without big upfront costs.

 

When Should You Continue Using Tally On-Prem?

 

  • If your company works from one office with no remote staff.
  • If you’d prefer to pay once rather than incur recurring subscription fees.
  • If you already have an effective internal IT setup for security and backups.

 

Want to explore detailed pricing options? [View Tally on Cloud Plans]

 

Conclusion

 

For SMEs in 2025, the decision between Tally On-Prem and Tally on Cloud reduces to flexibility and expansion. While on-prem remains acceptable for traditional setups, the way forward is Tally on Cloud—with scalability, security, and remote access functionalities.

If your business wants zero maintenance, high security, and anywhere access, it’s time to move to NetForChoice Tally on Cloud.

Ready to migrate? Contact NetForChoice today and empower your SME with the future of Tally.

 

FAQs

 

Q1. What’s the key distinction between Tally On-Prem and Tally on Cloud?

Tally On-Prem is directly installed on the office machines, while Tally on Cloud is run online on secure cloud servers.

 

Q2. Is Tally on Cloud secure for SMEs?

Yes. With NFC’s Tier IV data centers, encryption, and SOC-as-a-Service, Tally on Cloud provides enterprise-level security.

 

Q3. Do I need high-speed internet to access Tally on Cloud?

Yes, but ensure there is a good internet connection in order to work without interruptions.

 

Q4. Is Tally on Cloud cost-effective than Tally On-Prem?

For SMEs, yes.. It removes hardware, IT staff, and maintenance costs, which are replaced by a recurring subscription model. 

 

Q5. Does NetForChoice provide migration support for Tally On-Prem to Cloud?

Yes, indeed. NFC offers end-to-end migration support, which ensures zero data loss and zero downtime.

 



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