Determine if Cloud ERP Lies in the Future

Cloud ERP is ready but you might not be. It’s all about Risk-Adjusted Cost Benefit.


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Your Challenge

  • Cloud computing has become a major theme in corporate IT. Its popularity is even extending to the stodgiest of all enterprise applications: ERP.
  • Major ERP vendors are providing cloud-based options to new prospects and as a potential upgrade path. IT leaders must include cloud-based options in their five-year ERP strategy.

Our Advice

Critical Insight

  • “Cloud ERP” remains poorly defined. There are really three types: SaaS ERP, traditional on-premise ERP hosted in a vendor’s data center, and “White Label” cloud from a VAR hosted on a public IaaS provider.
  • Regardless of the option, the ultimate decision is really about benefit and risk, not cost.
  • Cloud ERP has great potential, but implementation references are still few and far between.

Impact and Result

  • Use a risk-adjusted cost-benefit analysis to assess cloud ERP options. Standard TCO is not sufficient.
  • Don’t do white label cloud ERP. 
  • Recognize that it is still difficult to do effective due diligence on cloud ERP due to the lack of references. This situation will change within the next two years.
  • Include cloud options in the five-year ERP plan. Within the next few years the CEO will ask: “Why didn’t we consider cloud ERP options?” Prepare your response today.

Determine if Cloud ERP Lies in the Future


Determine if cloud ERP lies in your organization's future

Understand the market and available options.


Calculate the risk-adjusted cost-benefit of different cloud ERP options

Determine the best ERP option.


Evaluate the appropriateness of cloud ERP for the enterprise

Make the go or no-go decision on cloud ERP.

Search Code: 58608
Published: May 17, 2013
Last Revised: May 17, 2013