The Good: Cloud/SaaS applications have become a reality
Gartner forecasts around 30% of enterprises use public cloud services, such as AWS or Salesforce.com. This is growing by around 17% annually, showing that business processes are becoming increasingly reliant on external cloud services. On-premise solutions are being replaced by cloud solutions, to handle scalability in a cost effective manner without compromising on the delivery quality. Cloud applications are quick to deploy, offer greater flexibility, and can yield significant financial and strategic advantages to the business. A strategic approach towards the cloud is expected instead of pure cost reduction objectives.
The Bad: The integration and consumption of cloud within the enterprise is not yet defined and poses as a challenge. There is a surge in expectations over enterprise applications with the advancement of dynamic, instinctive cloud technologies. Migration is complex; ownership of data is an issue, and security is paramount.
The Ugly: Roadblocks
Overcome the roadblocks by approaching the cloud piece-by-piece, starting first with an interim architecture in mind for the transition phase. Define and design the interim architecture before implementation. Orchestrate a business process across multiple platforms to understand issues with security, latency, and complexity of data / transaction.
Perform user research to define the evolution path of your existing application.
Another option would be to create isolation layers that exist on cloud, however tap on-premise software both to modernize and to increase adoption across the enterprise.
ERP in the cloud: SaaS
Highly standardized (no support for customer specific functional requirements, shared platform with other customers)
· Missing IT knowhow
· External hosting of business critical data
· On-demand pricing model
· Low cost solutions
· Minimized end-user training
· Ideal solutions for small and mid-sized companies
Highly customizable (industry specific settings, integrated into existing IT stack, dedicated platform)
· Existing IT knowhow
· Controlled and secure hosting of business-critical data
· Cost-intensive pricing
· Comprehensive end-user training
· Ideal solutions for big enterprises
· High business process diversification
Author: Sadanand Mohankumar, [ Intrigo Systems, Inc. ]