06 Mar Upgrading to Cloud ERP: 3 options to consider
Upgrading to Cloud ERP: 3 options to consider
To transition over to the Cloud or to not transition over to the Cloud; that is the question for many organisations looking to get the most out of their Enterprise Resource Planning (ERP) software.
However, it’s often not as black and white as that. As PCMag suggest in their piece on the ‘ERP trends to know in 2017’, there’s often a middle ground to be sought which proves a better fit for the business.
Decision-makers would be wise to tune into the trends in the ERP industry to see if there is benefit in aligning their business with any one of them.
- SaaS becoming the default deployment model
Software-as-a-Service (SaaS) applications are stored in the cloud as opposed to on your servers. That in itself means the tool is less expensive and much quicker to update and scale than on-premises apps.
It’s little surprise, then, that SaaS has become the default deployment model for new implementations, as per Forrester Research’s ‘Vendor Landscape: SaaS ERP Applications, 2017’ report.
However, for those that have not long invested in an on-premises ERP tools, all is not lost. Your current solution may act as a prime route to SaaS – it boils down to “whether the new SaaS offering delivers relevant architectural, flexibility, and usability advantages similar to products natively built for SaaS,” says Forrester.
- Blending SaaS with on-premises apps
Cloud is coming eventually for large existing ERP users, but it might not be the right move to transition over entirely to SaaS right now. A mixed model may be more beneficial, whereby you plug SaaS modules on top of your existing ERP.
It depends upon your current on-premises tool, of course, but if the existing set up works perfectly well, it doesn’t make a lot of sense to tear it down, just because you feel like you should be moving to the cloud in order to keep up.
- Building as you go
Forrester’s report shows that firms who already have on-premises ERP in place are inclined to deploy SaaS-based tools incrementally through the enterprise. This is especially true of large enterprises who have the capacity to trial how SaaS ERP performs in different areas of the business. They can then make a decision about whether or not to replace on-premises ERP throughout the entire organisation.
This is a good place to mention that hybrid solutions are available but the large vendors aren’t pushing them as they want you to go the whole hog into cloud. There are lots of options based on module, geography, subsidiary etc. The key is to do a review of the current landscape and build a roadmap to transition.