10 Jun Moving from On-premise to Cloud ERP
While new businesses are starting as cloud natives these days, there are still many businesses who have not made the transition from on-premise to cloud ERP. According to 2019 survey results published at CIO.com, almost two-thirds of businesses are planning to, or in the process of going cloud with ERP.
Moving from on premise to cloud ERP comes with a lot of benefits like allowing companies to leverage the provider’s computing resources without the need to purchase and maintain on-premise servers and equipment.
The top 3 reasons business make the switch from on-premise to cloud are:
• Increased scalability 65 %
• Lower cost of ownership 61%
• Maintenance included by the provider 49%
3 Key considerations when transitioning from on-premise to cloud ERP include:
Licensing Model – With the subscription model common to cloud, businesses usually pay a monthly fee rather than purchasing licenses up front. This enables businesses to easily ad and remove users as needed, without having to pay for licenses. Upgrades are also simplified on this model as the software is often maintained by the provider and all users are upgraded to the newest version at once without having to purchase new licenses.
Customization – Businesses that choose to use a one-size-fits-all cloud ERP solution out of the box will have substantially less ability to customize the system than those who use a private hosting provider. Customization abilities will vary from one brand of ERP to another and from one hoster to another.
ISV Solutions – When going cloud, many legacy ERP users will also have add-on integrations of apps that might not work with a new system. With the right hosting provider, adding on industry specific integrations should be simple, and the right ERP solution will be supported by a multitude of ISV solutions. Again, this can vary greatly depending on the ERP solution you choose.
With private hosting services, you can also make the witch from on-premise to cloud ERP while maintaining control of your critical data, and ad or remove integrations as needed.