The Future Of Cloud Based ERP

The Future Of Cloud Based ERP

What does the future look like for ERP in the cloud? It’s a question that everyone involved in this business asks, given that the general changeover from on-premise systems to cloud computing is currently happening more slowly than many had anticipated. But according to some industry watchers, the pace will continue to pick up, and the expectation is that over the next few years investment in public IT cloud computing services will approach $100 billion, with an annual growth rate of approximately 25 percent. Most of that is due to companies choosing to shift more and more of their core operations to the cloud.

The future of cloud-based ERP resides in a combination of forces: a recognition of the true safety and security of the cloud; the economic and functional practicalities of replacing licensed software such as Microsoft Excel with externally managed and maintained SaaS applications; the appeal of both two-tier and multi-tenancy ERP setups; and the general bandwagon effect.

Organizations such as Gartner, Deloitte, Accenture and others routinely poll their clients, asking them the reasons behind any major reluctance to move to the cloud, and in general CIOs and CFOs respond that the two primary sticking points are a lack of full familiarity as to cloud offerings, and a constant fear of a breach of security.

Jean Gea, Director of Product Marketing at Acumatica states that these are two issues that are relatively easy for ERP and cloud hosting providers such as Acumatica to handle, through increased communication with customers, delivered alongside one simple fact: when a cloud provider’s main stock-in-trade is to provide cloud access, the onus is upon them to ensure security as a fundamental component of doing business.

Further acceptance of cloud-based ERP will continue as improvements in virtualization, combined with the sharing of resources (called multi-tenancy) drives down the cost to ERP vendors of maintaining servers as well as code, savings that can be passed along to the customer. While many companies are still choosing to keep their ERP solutions in-house (on-premise), or have started to export some data across to a cloud as a hybrid/two-tier solution, they see ongoing costs of purchasing and upgrading software as an increasingly unnecessary annoyance.

Further, it is also significant to note that many legacy ERP systems lack the scalability to support ongoing changes in compliance regulation, which has great impact not only in numbers-based industries such as accounting and finance, but also in engineering and manufacturing, where ISO and related certifications standards continue to evolve. Cloud-based SaaS is in a much better position to move with these changes and to pass the change on to the customer inexpensively, while still adhering to any regulations regarding location of stored data.

The bandwagon effect: this is the age of the agile corporation. Companies that rest on plans and procedures that take days, weeks, or months to get started quickly lose out to those who have the mindset and the leadership to react to market demands more quickly and effectively. This is the essence of virtualization. Fewer silos, fewer legacy systems, faster time to market and reduced bureaucracy.

According to Louis Columbus, writing in Forbes and quoting a Gartner study, “SaaS-based manufacturing and distribution software will increase from 22% in 2013 to 45% by 2023. […] The catalyst for much of this growth will be two-tier ERP system adoption.

Another key area of innovation that will drive the future of cloud ERP is in analytics, especially when used in tandem with mobile computers (tablets/smartphones) that allow for instant updates on operations, as well as electronic paperwork and related company news. “This is something that Acumatica does extremely well,” says Gea, “by optimizing ERP for mobile and touch-based computers, our clients can be on one side of the globe and oversee essential resource management priorities with ease and confidence.” She adds, “As people shake off the mindset that to be in serious business you have to have hard, heavy machines in your own dedicated rooms, and replace that with the freedom of movement that cloud symbolizes, we will see more and more companies continue to shift more and more of their core operations there. As with any economy of scale, the benefits continue to increase as the collective participant group expands.”

Additional information about Acumatica’s cloud ERP services including demos and pricing are available at www.acumatica.com.

Post Sponsored By Acumatica

By Steve Prentice

Steve Prentice

Steve Prentice has dedicated his career and energies to pinpointing the perfect juncture of productivity between humans and technology in the workplace.

Steve is an acclaimed author and professional speaker who delivers timely, relevant, entertaining and informative keynotes dealing with technology, people and productivity in the workplace. As a mentor, he works with executives in one-on-one discussions, delivering answers and guidance to issues dealing with technology, personal time management and other practical skills. In addition, Steve is also a technology writer and consultant for CloudTweaks Media.

Sorry, comments are closed for this post.

Join Our Newsletter

Receive updates each week on news, tips, events, comics and much more...

Can I Contribute To CloudTweaks?

Yes, much of our focus in 2015 will be on working with other influencers in a collaborative manner. If you're a technology influencer looking to collaborate long term with CloudTweaks – a globally recognized leader in cloud computing information – drop us an email with “tech influencer” in the subject line.

Please review the guidelines before applying.

Contributors

Cloud Infographic – Wearable Tech And Preventative Healthcare

Cloud Infographic – Wearable Tech And Preventative Healthcare

Wearable Tech And Preventative Healthcare There are so many exciting new opportunities available to utilize wearable technology in the future.  Areas such as nanotechnology disease monitoring, crowdfunding to wearable accessories are some excellent examples of the potential. Estimates vary, but appear to suggest that the market will produce between $14-50 Billion over the next few years. Included below

Ten Tips For Successful Business Intelligence Implementation

Ten Tips For Successful Business Intelligence Implementation

Ten Tips for Successful Business Intelligence Implementation The cost of Business Intelligence (BI) software goes far beyond the purchase price. Time spent researching, implementing, and maintaining your BI investment can snowball quickly and mistakes are often expensive. Your time is valuable – save it by learning from other businesses’ experiences. We’ve compiled the top ten

Knots And Cloud Service Providers

Knots And Cloud Service Providers

How Do These Two Compare? In Boy Scouts, I learned how to tie knots. The quickest knot you can tie is the slipknot. It’s very effective for connecting one thing to another via the rope you have. It was used in setting up tents, mooring boats to docks temporarily and lifting your food up into

Big Data

To Have and Have Not: Big Data Initiatives In Developing Countries

To Have and Have Not: Big Data Initiatives In Developing Countries

Big Data Initiatives In Developing Countries The poor of the developing countries are becoming increasingly connected, to the point where they too are part of the Big Data revolution that’s happening across the globe. It didn’t come with laptops, though, as some supposed it would. Whereas it costs a fortune to connect broadband to a

Big Data In Your Garden: Initiatives For Better Understanding Nature

Big Data In Your Garden: Initiatives For Better Understanding Nature

Big Data in Your Garden Big Data and IoT initiatives are springing up all across the globe, making cities, protesters–and just about everything else–smarter. However, thus far there’s been little attention paid to the interactions between these bizarre technologies and living things other than humans. Biology, that is, human biology is one field where Big

Who Holds the Key to the City: Big Data and City Management

Who Holds the Key to the City: Big Data and City Management

Big Data and City Management Cities like New York, Madrid, and especially Rio de Janeiro are augmented with Big Data-powered initiatives that range from combating crime with predictive analytics (New York & Madrid) to providing real-time data for improved management. Although Big Data is no panacea and is mainly used in conjunction with a greater

Internet of Things

Gartner Research – Homes In 2022 Will Contain Hundreds Of Smart Objects

Gartner Research – Homes In 2022 Will Contain Hundreds Of Smart Objects

How the Internet of Things is Saving Lives Just hearing the phrase ‘internet of things’ is enough to strike fear into the hearts of many elderly people. As the world’s economy shifts increasingly towards online-only, the oldest people among us often feel left behind, confused that the ‘way things used to be done’ – the

Where’s the Capital of the Internet of Things?

Where’s the Capital of the Internet of Things?

Where’s the Capital? We all know the capitals of fashion are London, New York and Paris, while the capital of film is Hollywood (or Bollywood!) – but what’s the new capital of the internet? Specifically, the internet of things? The answer – according to new research by Ozy – might surprise you. It’s not Tokyo, Seoul,

Aggregated News

Popular News Sources

Security Startup – Illumio, Is Winning Big Contracts

Security Startup – Illumio, Is Winning Big Contracts

Security Startup – Illumio A hot new security startup called Illumio has launched today with a repertoire of highly coveted businesses as part of their client portfolio. Illumio today publicly unveiled its Adaptive Security Platform (ASP), the first-ever software platform that provides granular visibility and security for all data center and cloud computing environments. Global

Bits Blog: Coming of Age in Cloud Computing

Bits Blog: Coming of Age in Cloud Computing

Cloud computing has been criticized as undependable and tough to manage. A number of recent announcements suggest that some companies are trying to address the issue. Read the source article at NY Times About Latest Posts Steve PrenticeSteve Prentice has dedicated his career and energies to pinpointing the perfect juncture of productivity between humans and

Bitcasa Partners With Hutchison Telecommunications Hong Kong

Bitcasa Partners With Hutchison Telecommunications Hong Kong

Bitcasa Partners With Hutchison Telecommunications Hong Kong 3 Hong Kong, the mobile operation of Hutchison Telecommunications Hong Kong Holdings Limited today announced the launch of 3 Super Cloud, a multi-platform cloud storage service, powered by Bitcasa, the … Read the source article at Yahoo Finance About Latest Posts Steve PrenticeSteve Prentice has dedicated his career and