Can you please settle a basic IT argument between friends? ERP VS Clouds!

Our argument about main a difference between Clouds computing/hosting and ERP systems.

One explain it simply, if the service/software/data is hosted in internally infrastructure physically within the enterprise facilities we call it ERP. Therefore many of ERP portals is accessed over intranet. 

Where cloud services have their own infrastructure/servers in their own facilities and you as customer access data and service you hosted on a cloud via the internet. 

So my question briefly, is where the actual infrastructure and server are hosted either internally or of-site in other locations?

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