Cloud computing and enterprise resource planning (ERP) software are becoming more intertwined as time passes. More businesses are learning that the cloud provides employees with unprecedented access to work-related content from anywhere they are located, which is a welcome boon to overall productivity. Although companies are implementing cloud ERP systems more so than in previous years, this transition is still very much in the early phases.
Business 2 Community's Mark Connolly recently predicted that the majority of ERP implementations within the next two years will be cloud-based deployments.
"The fact is, the fate of on-premise ERP solutions isn't entirely bleak and there is certainly still a need, but we are witnessing a shift towards cloud-based solutions," Connolly explained. "ERP will always be required by many types of organizations, but on-premise ERP may in fact not survive this shift long-term. If companies hope to survive the transition they need to be proactive about developing their cloud solutions - and that means more than throwing up a landing page and calling yourself a cloud player."
Companies planning an ERP implementation should weigh the pros and cons of the cloud and on-site systems, Connolly suggested. Some executives may be hesitant to embrace the cloud, but there may not be a better option for managing ERP software than the hosted technology.
In any case, businesses should research potential vendors to make sure they select the right software. There are plenty of choices available to clients, so selecting a solution that fits their specific industry is a must.
Cloud considered integral to IT digitization
The days of managing expensive and ineffective IT systems may be over, thanks to the advancement of more innovative options, especially cloud computing. Organizations relying on antiquated equipment may quickly find themselves struggling to keep up with more agile competitors. To make sure they avoid this precarious position, firms may need to participate in the digitization of IT.
A recent Gartner survey of more than 2,300 CIOs found that more than half believe this digitization process is moving too fast for their businesses to handle. Another 42 percent indicated they simply lack the skilled personnel to manage this development.
Looking ahead, cloud computing will be a driving force behind the overall digitization of the IT industry. Gartner found that 25 percent of respondents have made serious investments in public clouds. A majority of CIOs said more than half of their companies' applications to be hosted in public cloud environments by 2020.
Some organizations may lack the resources to handle the digital IT landscape on their own, making cloud computing a great option for these companies. This is because businesses no longer have to manage the solutions themselves, since IT vendors handle most, if not all, of the maintenance associated with cloud-based deployments. Firms may not have much say in where the tech market is headed, but they do not have to go it alone.
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