The Top 10 Reasons Companies Turn to the Cloud for ERP
Over the last decade the cloud has been established as the preferred deployment environment for enterprise applications. Today, clients and vendors both presume that their next enterprise resource planning (ERP) deployment is more likely to be in the cloud than on the premises. What’s fueled the change?
Epicor recently published a document detailing the top 10 reasons their clients chose to deploy ERP in the cloud for business and technical benefits. Without further ado (cue drumroll), here is the top 10 list, counting down like the Late Show, but with logic instead of laughs:
10. Social Responsibility
Cloud deployment is now widely cited as one of the most environmentally responsible IT decisions. A study by WSP Environment Research points out that many multi-tenant cloud implementations present "a carbon footprint per transaction that is 95 percent less than on-premises deployment."
9. Faster Time to Value
Deployment in the cloud means shortened deployment times because the systems are already in place and optimized for immediate use by “the next client.” Because the decision to deploy a new ERP is presumably motivated by an awareness of the economic benefits of a new system, bringing those gains to the organization a month—or a quarter—sooner will drive that much more value that much sooner, improving the corresponding return on investment (ROI).
8. Reduced Risk, Greater Visibility, Better Value
Many clients choose a cloud-based system (ERP and other workloads) because it allows them to deploy a much more complete solution than they could otherwise manage or financially justify under legacy deployment models. Not having to make a massive upfront investment in the ERP system and its supporting infrastructure is critical in allowing smaller companies to perform beyond same-sized competitors from an enterprise application quality and completeness perspective.
7. Business Consistency and Global Process Alignment
For many organizations, moving to the cloud provides the immediate opportunity to shed multiple operating ERP systems, achieve instant visibility across every location, and standardize a single set of operational and administrative processes. This is key for today’s global enterprises.
6. Mobile and Collaborative
Moving to a cloud-based system gives everyone the real-time access they require as a routine part of their jobs while driving out the inefficiencies of paper-based processes as well as the burden and security risk of figuring out how to deliver these yourself. It allows companies to retire the poorly defined, ad-hoc “integration by Excel file” workflows, where email is the backbone for critical business collaboration between people and systems. In their place: real-time integration processes that link employees, vendors, partners, and customers for easier, more secure and more effective collaboration.
Cloud deployment redefines the upgrade experience by designing upgrades—big and small—to be deployed by the ERP cloud operations staff as part of standard support services, without imposing update installations on internal staff. Minor updates are transparently deployed (generally bi-weekly) in a non-disruptive fashion; major upgrades are announced well in advance and typically include a sandbox-training environment and end-user training. This eliminates the possibility of clients languishing on old versions of their ERP system while waiting for overburdened IT staff to get to the new versions that are sitting on the shelf.
4. The Cloud Is More Secure
Today, it is hard to imagine a client that could possibly create a more secure operating environment than leading cloud providers such as Epicor. Indeed, according to industry analyst firm Gartner, "Multi-tenant clouds are not only highly resistant to attack, but are also a more secure starting point than most traditional in-house implementations." A 2015 Verizon data breach investigation report echoes similar findings: "Ironically, avoidance of cloud services may even lead to unnecessary security risk, as organizations may continue to rely on poorly managed in-house systems that often have more security vulnerabilities than their public cloud equivalent."
3. Better IT Resource Utilization
Moving to the cloud doesn’t mean that the IT department will go away but it does mean that the IT department will be able to deliver higher-value activities that are better aligned with the organization’s mission, spending less time "patching the servers and keeping the lights blinking."
2. Compelling Cloud Economics
By now it’s evident that for companies of all sizes, the economics of cloud deployment are undeniably compelling. Some of the hidden economic benefits of the cloud include:
- Not being as capital intensive as an on-premises deployment
- Better and more instant scalability
- Upgrade deployment and other administrative activities included in the subscription
- Lower direct and indirect costs of infrastructure
- Savings from not having to run the servers
- Reduced deployment times
AND NOW the number one reason clients choose to deploy their ERP solutions on the cloud:
1. Freedom of Choice
Not all cloud ERP systems are created equal. Specifically, very few ERP vendors respect your right to choose the deployment model that is most appropriate for you, and revise that decision down the road as your business or technical needs change. By providing our clients the choice of Multi-Tenant (with its compelling economics and seamless upgrades) or Single Tenant (allowing more administrative control and administrative ownership), Epicor clients can choose the model that works best for them today.
For more information on why leading companies choose the cloud for ERP, you can go here.