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.
- 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.
- “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 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.