Below is the first in a series of blogs discussing Cloud ERP. In this series, we will start with the topic in very general terms and progress to specific advantages and disadvantages Cloud ERP applications. Finally, we will cover specific functionality available in applications such as Oracle’s Cloud ERP.
As per National Institute of Standards and Technology (NIST), cloud computing is a model for enabling convenient, on-demand network access to a shared pool of configurable computing resources (e.g., networks, servers, storage, applications, and services). The resources can be rapidly provisioned and released with minimal management effort or service provider interaction.
When it comes to Enterprise Resource Planning (ERP) on the cloud, WhatIs.com defines Cloud ERP as an approach to ERP that makes use of cloud computing platforms and services to provide a business with more flexible business process transformation.
As noted in a recent PwC report, global revenues from cloud-based Software as a Service (SaaS) solutions have already surpassed new license revenues from traditional ERP systems. Corporations of all sizes, from mid-size companies to global corporations, are making the switch. They are either moving to a complete cloud-based model or to a hybrid model that can scale to meet new customer demands. There are many advantages to cloud-based ERP systems, such as the Oracle Cloud ERP system. The three main are:
- Comprehensive Portfolio: The entire ERP suite in the cloud is delivered at a much lower cost as compared to traditional ERP systems. Modules such as Financial Accounting, Risk and Control, Supply Chain, Procurement and Project Management can be accessed with the simplicity of the cloud. While the cost savings are significant, organizations are switching to cloud or hybrid models as a catalyst for strategic change.
- Flexible and Modern: Cloud ERP systems also provide in-context analytics, role-based dashboard and actionable reporting functionalities. You can be sure you are getting the most out of your ERP system with a cloud-based model providing you with all the efficient process transformations and reporting.
- Reliable and Secure: Cloud ERP systems are secure and offer flexibility in deployment. You can customize security settings based on the roles and responsibilities of the organization.
Leverage the cost advantages and flexibility of having a cloud-based Oracle ERP solution and base your operations on the growing needs of your business. This would ensure that your IT investment dollars are optimized, leaving you free to focus on the core necessities of your business!
We at Computer Technology Resources are certified Oracle experts and can provide you a no-obligation consultation on a Cloud ERP solution that would work for your business. Please contact Dick Kenny at 714-912-9719 or email email@example.com
This is the second in the series of articles about Cloud ERP. In our first article, we discussed some standard definitions of Cloud ERP and the basic features of Cloud ERP systems. In this article, we will go a step further by discussing the advantages and disadvantages of Cloud ERP in more detail.
- Access to more features: Having applications on the cloud has the advantage of being able to access more standard features. Updates on the cloud are easier compared to upgrading an on-premise ERP system. Since it is easier to update the application, it ensures that you have access to the latest and greatest features that your software provider has to offer.
- Moving away from legacy systems: According to Gartner, by 2016, heavily customized on -premise ERP implementations will be viewed as “legacy” applications, and by 2018 some 30% of companies surveyed will have moved their ERP applications to the cloud. The pace of enhancements for Cloud applications will exceed those of larger on-premise applications as the number of companies using on-premise systems shrinks and application development naturally follows the customer dollar
- Faster implementation: Since the infrastructure and the software are on the cloud, the effort is towards moving the data from legacy systems to the cloud-based. From that point on, the updates are faster and customizable as per business processes.
- Limited customizations: With every release, the cloud products are becoming more and more configurable. This means that functionality that used to be considered customizations are now being offered as standard. However the fact remains that with companies requiring very heavy customizations, especially with some functional suites, on premise ERP applications are still the best option.
- Limited Product Suites: Most companies offering cloud solutions are focused on particular applications like HCM or Financials. Very few providers are offering a single suite of products that meet most user requirements. This means integrating existing on-premise applications with newer cloud products. This can potentially lead to additional costs, more complex process flows or lost functionality.
- Cost considerations: Though, overall cloud solutions are quite cost effective, there are cost considerations to be looked into when talking about long-term costs for licenses and support. When considering a move to a cloud application look at the 5 and/or 10 year Cost of Ownership. The cost advantage of cloud product might not be as great as initially thought.
Ideally, some applications are best left as on-premise systems and wherever possible, you can move the rest onto the cloud. For example, applications such as Revenue Management Cloud Service  takes data from the Oracle e-Business Suite through pre-built integrations, and provides powerful revenue recognition capabilities not previously available.
Forrester Research  currently pegs Cloud computing expenditures at more than $40b globally, and growing at over 20% per annum. If not already, businesses should start assessing aspects of their IT processes to see if it makes sense to move them to the cloud and begin taking advantage of the benefits the cloud provides.
We at Computer Technology Resources are certified system experts and can provide you with a no-obligation assessment on Cloud ERP solutions that would work for best your business. Please contact Dick Kenny at 714-912-9719 or email firstname.lastname@example.org.
- Gartner “Predicts 2014: The Rise of the Postmodern ERP and Enterprise Applications World” G00259076 12/5/2013
- Based on an analysis of Gartner Group, Forrester, IDC, Wall Street Journal, and MarketsandMarkets.com projections and forecasts.