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

1

Determine if cloud ERP lies in your organization's future

Understand the market and available options.

2

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

Determine the best ERP option.

3

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