CLOUD ERP and Top Vendors
According to Statista, the global cloud ERP software market was projected to be worth 40.5 billion U.S. dollars by 2025, growing at a CAGR of 13.6% during 2019 and 2025.
What is Cloud ERP
As we know ERP stands for Enterprise Resource Planning used by large enterprises to integrate various departments and work seamlessly. Most organizations are still using on-premise ERP Solution within their secured intranet infrastructure. The trend is gradually moving to Cloud ERP and according to Gartner, by 2020, at least 35 percent of new product-centric ERP deployments in large enterprises will be software as a service (SaaS) loosely integrated with on-premise manufacturing execution systems (MES). ERP software that is deployed and run in a cloud environment is classified as cloud ERP
Cloud ERP is Software as a Service that allows users to access Enterprise Resource Planning (ERP) software over the Internet within the secured network. One of the biggest advantages of using Cloud ERP solutions is its lower upfront costs on computing resources over the on-premise solution. Most businesses see Cloud ERP solutions as the fastest way of deployment and come with much lower cost than on-premise complex infrastructure-based solutions.
The second big advantage is the ease and speed of deployment. A 2014 survey by the industry analyst firm Mint Jutras reported that “respondents with SaaS implementations reached their first go-live milestone 19% faster than those with on-premise solutions”. It’s simple – cloud computing eliminates the need for purchasing and installing hardware and software as computing services are on the cloud which can be leased.
With the changes digital technologies are bringing to industries, ERP solutions should be more adaptive to them for example consumers buying habits are rapidly increasing from in-store to online using phones, hence mobile solutions are seen as a critical factor to businesses. Cloud ERP third advantage is to enable the use of the solution anytime, anywhere from the device without worrying about expensive VPN based desktop solutions.
Apart from many other benefits some of the main advantages are better UX, consumerization of IT (see my post) and are more flexible in adapting to a business needs, Also as trending technologies—such as the Internet of Things (IoT), artificial intelligence and machine learning, natural language interfaces and blockchain are emerging it will be easier to integrate with Cloud-based ERP solutions rather on Premise Solutions
There are three kinds of Cloud-based ERP Solutions
- Public Cloud/SaaS – The service provider for example Acumatica will host the service via cloud and deployments are run in a shared resource with adequate security
- Hybrid Cloud – You can run some resources in Public Cloud and some private behind your firewall
- Private Cloud – Privately purchased service in your own private cloud in your own or a third-party data center.
How difficult it is to move from On-Premise to Cloud ERP
If you have a new business and looking for an ERP solution, it’s not complicated, and you can pick a solution from the different cloud-based ERP vendors. Whilst in the process of selection get into details on the options available; understand your requirements and ask for demos. Most of the vendors provide a free demo and advise on your need.
If you already have an on-premise ERP solution and considering moving to cloud-based then migration to the cloud brings many risks as you would expect to maintain data integrity and ensure operational continuity (sensitivity of data, the risk of losing data integrity, same outcome as before and after)
Below are some tips on your data migration strategy from On Premise to Cloud
- Migrate with platform-specific best practices and tool chains, standard process and methods, and a dedicated major public cloud migration and delivery practice with certified professionals.
- Find the right cloud adoption strategy for your organization’s needs – Do the workload, application and DevOps transformation, along with various operating and disposition models. Business case and ROI projections help determine which cloud models make sense for your business.
- Know which applications are cloud-suitable, which ones require redesign and which ones can be moved AS IS to provide a quick return?
- One of the most critical factors in successful cloud migration is the ability to modernize legacy applications as you may be dealing with complex interdependencies, inflexible architectures, redundancy, and out-of-date technology.
TOP Cloud based ERP Vendors
- SAP Business ByDesign– SAP Business ByDesign is an end-to-end cloud ERP solution designed to integrate your departmental silos into one united business. With flexible business processes designed on best practices, it’s designed to connect your organization and provide access to accurate, real-time data. With the ability to scale and compete without increasing the complexity, you have the opportunity to grow your business your way. SAP Business ByDesign is a holistic, user-friendly application deployed to more than 4000 organizations over 120 countries. SAP Business ByDesign is a Software-as-a-service (SaaS) application and is offered on the public as well as a private cloud environment. SAP also has gained enough success under cloud-based solutions for human capital management, in particular, The cloud delivery model meant that the solutions would be immediately available worldwide to all staff, with no on-site implementation necessary, and offered the flexibility and adaptability that would fit the company’s needs
- Award Winning Fiori Design (Fiori is HTML5 based face of SAP frontend with better and enhanced UI improving the UX)
- Improved Efficiency
- Key Capabilities under, Service Industries, Finance, CRM, Human Resources, Procurement, Supply Chain Management (More here https://www.sap.com/uk/products/business-bydesign/features.html)
- Oracle NetSuite – On November 7, 2016, Oracle’s acquisition of NetSuite became official, bringing together the reach of NetSuite’s cloud ERP solutions for small to midsize businesses with the breadth and depth of Oracle’s enterprise-grade cloud solutions for the back and front office. NetSuite ERP is a developer hosted, cloud-based ERP platform that is offered as a software-as-a-service (SaaS). It is touted as the “the world’s most deployed cloud ERP solution” as it is utilized by more than 40,000 enterprises in 160+ nations. In 2018 it has received Best ERP Software by Finance Online. Historically Oracle started in providing Finance Solutions and even now they specialize under the Finance sector on overall ERP solution.
Key Capabilities under Accounting, Fixed Asset Management, Payment Management, Demand Planning, Billing Management, and Invoicing, Inventory Control and Warehouse Management
- Acumatica – Acumatica’s cloud-based ERP system is designed for small and medium-sized businesses (SMBs) and mid-market organizations Acumatica’s cloud applications run on the Microsoft Azure operating system and rely on SQL Azure
- Distribution, Manufacturing, Service Industries, Construction, Retail and eCommerce, Software and Technology
- Microsoft Dynamics AX – Designed for midsize and larger companies, Microsoft Dynamics AX(formerly Axapta) is a multilingual and multicurrency enterprise resource planning (ERP) software suite with core strengths in manufacturing and e-business that also provides powerful functionality for the service and wholesale industries.
- Salesforce ERP – Salesforce is ranked as the world’s #1 customer relationship management (CRM) platform many times. The cloud-based CRM application covers for sales, service, marketing, and one of its huge success reason is that it doesn’t require IT experts to set up or manage and relatively very easy to set up by enterprises. Over 150,000 companies use Salesforce CRM all on a single platform that’s always accessible from any desktop or device. Salesforce CRM combines with Rootstock to provide ERP solution
- Rootstock – Rootstock Software is a worldwide provider of cloud ERP on the Salesforce Cloud Platform. When combined with Salesforce CRM, Rootstock Cloud ERP offers manufacturing, distribution, and supply chain organizations a single platform to grow and manage their businesses. Rootstock Cloud ERP is a flexible, modern, and digitally-connected system that transforms companies to deliver a more personalized customer experience, efficiently scale operations, and out-service the competition.
- IQMS – It originated at Shop Floor and is tailored specifically for the manufacturing environment. They were awarded as Front Runners in 2018 by Software Advice. Structured on accountability, the IQMS system combines manufacturing software, MES software and ERP software to provide an integrated solution. Their key capabilities are under Automotive, Medical, Aerospace, and Defence, Assembly, Food and Beverage, Packaging, Process Specific, Stamping