On-premise agentic ERP deployment: what this means
On-premise agentic ERP is a deployment in which the AI agents working on top of your ERP, and the language models they use, run on your own servers or on infrastructure you control. The goal is for ERP data to be read, interpreted and turned into recommendations without ever leaving the company.
Why the on-premise question comes up
The ERP holds a company’s most sensitive data: customer details, prices, costs, salaries, supplier terms. When a cloud AI service is used, at least some of that data travels to a server outside the company to be processed. For many companies that is acceptable; for others, contracts, sector rules or internal policy say it is not. On-premise agentic ERP lets that second group move forward without giving up the agent layer.
Data residency: what stays where
In an on-premise setup the data flow completes inside the company’s boundaries:
1. The agent reaches the ERP over the internal network with a read-only connection.
2. The data it reads is processed in the agent layer running on the company’s server.
3. The language model that writes the recommendation’s reasoning runs on the same infrastructure.
4. The approved result is written back to the ERP over the internal network.
5. Audit records are stored in the company’s own database.
So the question “where is our data processed?” has a single, clear answer.
What changes with KVKK
KVKK, Turkey’s personal data protection law, sets obligations around purpose limitation, data minimisation, security and transfers abroad, much like GDPR does in Europe. An on-premise deployment does not remove those obligations, but it makes some of them easier to manage:
| Topic | Effect of on-premise deployment |
|—|—|
| Transfers abroad | If the model and data stay on company infrastructure, no transfer takes place |
| Access control | Which tables the agent can reach is defined in the company’s own permission system |
| Records and accountability | The audit trail is kept in the company’s own database |
| Data minimisation | Agents are given only the fields a decision needs |
The legal assessment belongs with each company’s own advisers; the technical setup is simply a tool that makes acting on it easier.
Local models: what to expect
Open-weight language models you can run on your own servers have improved considerably in recent years. In agentic ERP the model’s job is usually to summarise the situation emerging from ERP data, explain the options, interpret free text such as a supplier email, and answer users’ questions.
Two realistic points apply:
– The model does not do the arithmetic. Stock cover, ageing and capacity are calculated with rules and directly from data. The model turns those results into understandable reasoning. This separation improves accuracy and makes local models practical.
– Hardware needs planning. Model size, the number of concurrent users and the expected response time determine server requirements. Starting with a small pilot and measuring real usage beats guessing.
Veraius is designed so that agents and models can run on-premise; cloud models come into play only if the company chooses them.
Architecture components
A typical on-premise agentic ERP setup includes:
1. ERP connector: a layer that connects over the internal network to systems such as Logo, Netsis, Mikro, Canias, Nebim, SAP, Dynamics 365 or Oracle, read-only at first.
2. Agent and workflow engine: watches signals, starts workflows and prepares recommendations.
3. Local model server: the language model that writes reasoning and summaries.
4. Approval and notification layer: routes recommendations to the responsible person and collects the approval.
5. Audit database: the in-house store where every step is recorded.
Messaging channels and residency
Sending recommendations through Teams, Slack or Telegram is convenient, but these are services outside the company. Where residency matters a great deal, you can put only a short notification and a link in the message and show the details on the internal network. This is a deliberate choice made during setup.
On-premise or cloud?
| Criterion | On-premise | Cloud |
|—|—|—|
| Data control | Entirely in-house | Depends on the provider contract |
| Time to start | Hardware preparation needed | Faster |
| Operating effort | With your IT team | With the provider |
| Model choice | Models that can run locally | Wider range |
Both routes follow the same logic: agents work on top of the ERP, and approval and the audit trail are preserved. The difference is where the processing happens.
Frequently asked questions
Does an on-premise setup need an internet connection?
Agents, the ERP and the local model can all run on the internal network. External connections are needed only for integrations the company chooses, such as messaging channels.
Can local models handle Turkish text?
Open models with Turkish support are available. The choice should be made during the pilot, tested against the company’s own data and questions.
Does going on-premise mean replacing the ERP?
No. Just as in the cloud, agents connect on top of the existing ERP, which remains the system of record.
Summary
On-premise agentic ERP runs agents and language models on your own infrastructure so ERP data is processed without leaving the company. It makes KVKK compliance easier to manage, simplifies the data flow and keeps approval and the audit trail under your own control. The price is hardware and operational responsibility; the reward is always knowing where your data is.