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Vendors’ efforts to move enterprises to the cloud met with resistance

Vendors’ efforts to move enterprises to the cloud met with resistance

Technology vendors aren’t exactly subtle about the fact they want businesses to go all-in on cloud platforms. But, evidence suggests that many enterprises are taking the path of hybrid deployments when it comes to their ERP and HCM systems.

In its quarterly results, Hewlett Packard Enterprises (HPE) reported a 4% revenue gain, driven by its largest segment – hybrid IT – which increased 3% to $6.2 billion (£4.7bn). Reporting on the results, TechTarget notes that the company has “built its future around hybrid cloud systems optimised to move data between cloud and on-premises systems”.

HPE foresaw that users would be resistant to moving to the cloud in a single step-change. That resistance has been apparent for us when working with clients. It’s entirely understandable – why opt for change for the sake of it? Instead, we urge our clients to conduct a ‘Landscape Review’ of their organisation and then take those findings to market to look for a solution that meets those needs.

In 2017, International Data Corporation found that 70% of core enterprise applications run on traditional IT platforms including on-premises systems. The IDC analyst who worked on the study believes that the figure won’t have changed much in the last 12 months.

Vendors are responding by extending their on-premise support. As we reported earlier in the year, Oracle still gets nearly two-thirds (65%) of its software license revenue from on-premise products, so it’s well within their interests to keep these users happy or risk losing some serious revenue.

Andy Nellis, CEO at e-Resolve, who has just been elected as Oracle Scene Editor –was very clear in a previous discussion about how enterprises should go about modernising their systems.

He said: “The best solution doesn’t have to be a cloud-based offering – but if your HR priorities are, for example, to enable effective remote working and improve collaboration, then it might be. It all depends on what you need to achieve and by when – and what it is about your current system that’s stopping you from getting there.”

To read more of his thoughts on migrating to the cloud, click here. If you have any questions after reading the article, please get in touch.

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