What best describes a system that incorporates both on-premises and cloud-based ERP solutions?

A system that incorporates both on-premises and cloud-based ERP solutions is best described as a hybrid ERP. Hybrid ERP systems combine the strengths of traditional on-premises deployments, which can offer control and customization, with the flexibility and scalability of cloud-based solutions. This approach allows organizations to leverage existing investments in on-premises infrastructure while also taking advantage of the modularity and features provided by cloud services.

For instance, a company might maintain critical financial applications on-premises for compliance reasons while using cloud-based tools for supply chain management or customer relationship management. This flexibility enables businesses to adapt their ERP systems based on current needs, technological advancements, or market conditions, illustrating how hybrid models work effectively in diverse IT environments.

Understanding hybrid ERP is crucial for organizations aiming to optimize their operations in a hybrid environment, thus making it the most fitting description in this context.