We are all more than familiar with the benefits that the cloud brings to our lives outside of work – we no longer have 100’s of CD’s filling our bookshelves, we use on demand streaming services to listen to music, which means we can be a fickle with our music tastes without worrying about where we will store all the ill thought out music choices we have made.
applies to banking, right? We used to have to make an appointment with the bank
manager to request a loan. Now we can just log into our online banking service
and apply from the comfort of our arms chair – the banks have enough intel
stored on us for a decision to be made instantly, with our us having to dig out
payslips from 1984.
However, product-centric businesses appear slower to catch up – but as the workforce begin to demand the same technology in their work lives as they enjoy in their private lives. We are seeing the tide turn and businesses, gradually, are seeing the benefits of storing data in the cloud. These benefits can include cost savings across hardware and deployment, an upgrade free world, the availability of AI, and also the emerging idea of collective insights – where we can begin to predict customer trends using big data analysis.
is the future of ERP?
businesses have continued to become more and more software-driven, Enterprise
Resource Planning (ERP) software has quickly emerged as one of the key pillars
of any modern digital strategy.
it has traditionally served the manufacturing sector, its influence is now
being felt much wider across the organization. Indeed, businesses in virtually
all industries are deploying ERP software to connect disparate business
processes and solve a myriad of challenges. These include everything from
streamlining operations to managing complex business processes and using data
to augment human decision-making.
business benefits of ERP are clear to see but, when it comes to picking the
right type of deployment, things aren’t quite as straightforward. From hosted
and on-premise to public cloud and private cloud, there are a whole host of
options for organisations to consider amidst a changing market landscape.
also important to remember that not all business needs are the same. Just
because cloud is the right option for one business, it doesn’t mean it will be
for another, so understanding which deployment option best suits them is vital
to ensuring a smooth implementation.
deployments have traditionally been the norm in the ERP space. Not only do
on-premise ERP provide businesses with full control and autonomy over their
data, it also offers greater scope for customisations and enables in-house IT
teams to respond to issues immediately. But times have changed. They are now
perceived as being expensive and complex compared to cloud-based deployments,
which are generally quicker, cheaper and less resource-intensive.
deployments generally require a large capital investment for the perpetual
licences and the infrastructure, the cost of which will vary depending on the
size of the organisation or the number of concurrent users. There are then
recurring fees for support, training and updates, along with the potential need
to hire additional personnel to run and manage the system.
such, cloud deployments are coming to the fore, with a new report predicting that the cloud-based ERP market will
grow from $14.7 billion in 2017 to $40.5 billion by 2025. As well as the
reduced up-front costs, this shift is being driven by factors such as the high
level of performance that cloud platforms offer (e.g. high availability, low
latency) and the fact that the business itself isn’t responsible for managing
or maintaining the platform.
cloud environments provide businesses with the agility they need to remain
competitive in today’s fast-moving business landscape, while generally being
cheaper than private cloud platforms and enabling businesses to capitalise on
their vendor’s innovation roadmap.
the other hand, private cloud can provide an added layer of security, as an
organisation’s data will be completely isolated from anyone else’s. They can
also offer greater capacity for personalisation, as businesses have more
influence over upgrades and modifications.
we have hosted deployments, which in many ways provide a middle ground between
on-premise and cloud. By hosting their platform in a third-party datacentre,
businesses can maintain ownership and control of the database, but still hand
the responsibility of managing the hardware over to the data centre provider.
specific business needs front and centre in the decision-making process is key
here, a one size fits all solution simply isn’t available. So, ahead of
choosing the right supplier, it’s imperative to put identifying the right
deployment option for your business at the top of the ‘to-do’ list.
how can businesses pick the right deployment option to suit them? By focusing
on a few fundamental factors. For example, one key driver is the eternal debate
between CapEx and OpEx.
businesses that opt for a hosted or on-premise deployment will have a perpetual
licence with a one-off cost, rather than a subscription-based licence more
commonly found in cloud environments. They will also manage software updates in
house, at a time that suits their operations. However, some businesses will
want to take a different approach depending on where they are in their
a business that is growing fast, a subscription licence in the cloud could be
more appropriate because it will enable them to easily add services, scale up
their infrastructure and continually be on the latest version of the software
due to automatic updates.
is the operative word here. Ultimately, it’s important to remember that every
business is unique. Rather than simply following the crowd, businesses should
take the time to work out their key requirements and choose a deployment option
that will provide them with the best platform for future growth.
Sage (FTSE: SGE) is
the global market leader for technology that helps businesses of all sizes
manage everything from money to people – whether they’re a start-up, scale-up
or enterprise. We do this through Sage Business Cloud – the one and only
business management solution that customers will ever need, comprising
Accounting, Financials, Sage Intacct, Enterprise Management, People &
Payroll and Payments & Banking.
Our mission is to free business builders from the burden of admin, so they can
spend more time doing what they love – and we do that every day for three
million customers across 23 countries, through our 13000 colleagues and a
network of accountants and partners. We are committed to doing business the
right way, and giving back to our communities through Sage Foundation.
Rob Sinfield, VP, Sage Business Cloud Enterprise Management
https://erpnews.com/v2/wp-content/uploads/2019/08/cloud.gif400600katiehttps://erpnews.com/v2/wp-content/uploads/2018/10/[email protected]katie2019-08-07 06:00:492019-08-06 15:08:47Keeping Your Head in the Cloud, But Your Feet on the Ground
Do You Know How ERP Systems Have Evolved Up Until 2019?