Why cloud should be on the boardroom agenda
Tuesday, February 16, 2016
Organizations globally are examining digitization as a broad strategy, knowing that this is about much more than process automation and resource planning systems.
Technologies like cloud, mobile, social, and analytics are changing the game in every industry and market—from human capital management and supply chain planning, to operations and marketing. For example, EBSCO, a promotional products maker, talks about “the value proposition of scale and efficiency and speed-to-market” of its cloud solution.
Technology is so embedded in daily business management that the conversation about technology and its adoption has moved well beyond a simple IT recommendation. Board members and senior executive teams are becoming more involved in technology issues, since they need to determine how technology may shape the strategic direction of the business.
At Infor, we applaud the interest from senior executive management teams, and we work with customer project teams to provide the business-case support to develop a compelling story for cloud adoption that can persuade leadership.
One of the critical technology issues for many boards and companies is the adoption of cloud applications and cloud deployment. Among the most common conversations we’re involved in is the cost implications, followed by security and reliability concerns.
Franz Beerkens, CIO of Fetim, an international producer of construction and home products, has remarked about overcoming board reservations on cost of ownership, process standardization, and security in this recent article. He explains why Fetim moved to the cloud in this video.
The business value
During the past year, Infor’s Value Engineering (VE) Team has helped more than 100 customers identify the return on investment of moving to the cloud, and the results are impressive. Based on a subset of 31 institutions in North America that engaged with Infor Value Engineering, the savings from moving to the cloud ranged from 29% to 76%, mainly due to the elimination of on-premise costs (see chart below).
Typically, a VE assessment will look at the cost of running software on premise: hardware refreshes, upgrade services, disaster recovery, annual infrastructure maintenance and replacement, third-party licenses, and application maintenance. It then compares these costs against the typical SaaS subscription fee of running your ERP system in the cloud.
Secure and reliable software in the cloud
Infor made a strategic decision to partner with Amazon Web Services (AWS) instead of attempting to build and own the infrastructure ourselves. This is a different approach than other cloud software providers have taken, but it’s one we believe keeps us focused on our core mission—beautiful business applications with last-mile functionality for select industries, delivered as a cloud service.
Rien Krieger, CIO of Boskalis, a Netherlands-based global maritime service leader, says of his company’s decision to move to the cloud with Infor, “It’s good to go that way.” Learn more here.
We recognize that our customers want our help in determining how to move more of their operations into the AWS cloud. Like Infor, they want to shift their resources to focus on what they do best, rather than the “pick and shovel” heavy lifting of running on-premise enterprise software. Most importantly, AWS offers unprecedented levels of security—more than an organization can even conceive of on its own—along with the reliability and the scalability organizations need to support growth and respond quickly to market activity.
From concept to board approval
Technology is an important component of corporate strategy today, and board members need to grasp its impact on the stakeholders they serve. Infor is ready to work with your team, and your board, to develop a thoughtful roadmap and plan for cloud application adoption and deployment.
We invite you to contact us so that we can map your journey to the cloud.