With increasing market competition and globalization, SMEs have shown interest to deploy ERP package to integrate their business processes. High investment in terms of cost, manpower and time are the major hurdles while selecting a traditional ERP package. Hence there is a need to look for a cost effective ERP solution. Deploying ERP on Cloud is one such option due to lower infrastructure cost and flexible payment. A SME evaluates an ERP solution from Economical, Technological and People perspectives with the factors that measure them. . . A factor can either be a benefit or a threat. A benefit facilitates whereas a threat holds back SMEs decision to adopt ERP in cloud. This research provides a benefit- threat framework on Economical, Technological and People perspective that a SME perceives while selecting ERP in cloud environment. The framework is validated and it suggests that Economical and Technological are two important perspectives while selection of ERP on cloud for a SME
