|By Harry Trott||
|June 23, 2014 10:00 AM EDT||
Enterprise Resource Planning has traditionally been a software for large corporates with million dollar technology budgets. But that has been changing over the past decade with the advent of cloud based ERP systems. According to a survey conducted by Sage, nearly 30% of finance managers at UK based SMEs believe that cloud could make ERP more affordable or viable to them. In another study published by Gartner, the top five fastest growing ERP vendors today are all SaaS companies. Even the larger, mature SaaS players like NetSuite have registered exponential growth rates of nearly 40% while the traditional on-premise vendors like Oracle and SAP are showing signs of stagnation.
The growth of cloud has brought about a dramatic shift in the demographics of a typical ERP customer. According to Gartner, there is an urgent need for larger enterprises to realize the cultural shift that cloud ERP has brought in, and evolve accordingly. A major cause of resistance, Gartner notes, is that most of the middle and senior management in large enterprises is composed of technology folks who have spent their lifetime deploying and maintaining on-premise ERP systems. A migration to the cloud is seen as a means to make their own jobs redundant and as a result, “this is a clock that will not stop ticking until they retire.”
But that's a dangerous gamble to make. SaaS ERP has made technology affordable and accessible to smaller businesses. In addition to the cheaper pricing plans, SaaS ERP is also easy to maintain and update. Consequently, smaller businesses with SaaS ERP are likely to enjoy newer features than larger companies that make use of customized on-premise ERP that are not up-to-date with business requirements. This is a guaranteed way for the larger enterprises to lose their competitive edge with the smaller players in the industry.
An earlier Gartner report had predicted that traditional on-premise ERP could be relegated to legacy status as early as 2016. That is a major cause for concern for the larger ERP players like Oracle who have less than 10% of their revenues coming from SaaS. The only string that keeps Oracle's traditional ERP system still relevant is the barrier for enterprises to migrate from these large systems to more agile cloud solutions. But a solution to this could be well on the way from rival cloud based service providers. In such a scenario, it's a matter of time before a large chunk of larger enterprises move their ERP systems to the cloud. When that happens, it could spell the end for ERP as we know it. And we are closer to this now than we have been any time in the past – that's a realization that companies like SAP and Oracle need to have in order to stay relevant in a postmodern ERP ecosystem.
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Aug. 3, 2015 11:30 PM EDT Reads: 245
"We've just seen a huge influx of new partners coming into our ecosystem, and partners building unique offerings on top of our API set," explained Seth Bostock, Chief Executive Officer at IndependenceIT, in this SYS-CON.tv interview at 16th Cloud Expo, held June 9-11, 2015, at the Javits Center in New York City.
Aug. 3, 2015 11:00 PM EDT Reads: 694
In a recent research, analyst firm IDC found that the average cost of a critical application failure is $500,000 to $1 million per hour and the average total cost of unplanned application downtime is $1.25 billion to $2.5 billion per year for Fortune 1000 companies. In addition to the findings on the cost of the downtime, the research also highlighted best practices for development, testing, application support, infrastructure, and operations teams.
Aug. 3, 2015 10:45 PM EDT Reads: 220
SYS-CON Events announced today that HPM Networks will exhibit at the 17th International Cloud Expo®, which will take place on November 3–5, 2015, at the Santa Clara Convention Center in Santa Clara, CA. For 20 years, HPM Networks has been integrating technology solutions that solve complex business challenges. HPM Networks has designed solutions for both SMB and enterprise customers throughout the San Francisco Bay Area.
Aug. 3, 2015 06:45 PM EDT Reads: 536
Learn how you can use the CoSN SEND II Decision Tree for Education Technology to make sure that your K–12 technology initiatives create a more engaging learning experience that empowers students, teachers, and administrators alike.
Aug. 3, 2015 05:45 PM EDT
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Aug. 3, 2015 04:00 PM EDT Reads: 277
As Marc Andreessen says software is eating the world. Everything is rapidly moving toward being software-defined – from our phones and cars through our washing machines to the datacenter. However, there are larger challenges when implementing software defined on a larger scale - when building software defined infrastructure. In his session at 16th Cloud Expo, Boyan Ivanov, CEO of StorPool, provided some practical insights on what, how and why when implementing "software-defined" in the datacent...
Aug. 3, 2015 03:45 PM EDT
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Aug. 3, 2015 03:30 PM EDT
SYS-CON Events announced today that VividCortex, the monitoring solution for the modern data system, will exhibit at the 17th International Cloud Expo®, which will take place on November 3–5, 2015, at the Santa Clara Convention Center in Santa Clara, CA. The database is the heart of most applications, but it’s also the part that’s hardest to scale, monitor, and optimize even as it’s growing 50% year over year. VividCortex is the first unified suite of database monitoring tools specifically desi...
Aug. 3, 2015 03:15 PM EDT
The Software Defined Data Center (SDDC), which enables organizations to seamlessly run in a hybrid cloud model (public + private cloud), is here to stay. IDC estimates that the software-defined networking market will be valued at $3.7 billion by 2016. Security is a key component and benefit of the SDDC, and offers an opportunity to build security 'from the ground up' and weave it into the environment from day one. In his session at 16th Cloud Expo, Reuven Harrison, CTO and Co-Founder of Tufin,...
Aug. 3, 2015 03:00 PM EDT Reads: 560
In their session at 17th Cloud Expo, Hal Schwartz, CEO of Secure Infrastructure & Services (SIAS), and Chuck Paolillo, CTO of Secure Infrastructure & Services (SIAS), provide a study of cloud adoption trends and the power and flexibility of IBM Power and Pureflex cloud solutions. In his role as CEO of Secure Infrastructure & Services (SIAS), Hal Schwartz provides leadership and direction for the company.
Aug. 3, 2015 12:30 PM EDT Reads: 209
SYS-CON Events announced today that MobiDev, a software development company, will exhibit at the 17th International Cloud Expo®, which will take place November 3–5, 2015, at the Santa Clara Convention Center in Santa Clara, CA. MobiDev is a software development company with representative offices in Atlanta (US), Sheffield (UK) and Würzburg (Germany); and development centers in Ukraine. Since 2009 it has grown from a small group of passionate engineers and business managers to a full-scale mobi...
Aug. 3, 2015 09:45 AM EDT Reads: 367
There are many considerations when moving applications from on-premise to cloud. It is critical to understand the benefits and also challenges of this migration. A successful migration will result in lower Total Cost of Ownership, yet offer the same or higher level of robustness. In his session at 15th Cloud Expo, Michael Meiner, an Engineering Director at Oracle, Corporation, analyzed a range of cloud offerings (IaaS, PaaS, SaaS) and discussed the benefits/challenges of migrating to each offe...
Aug. 3, 2015 07:30 AM EDT Reads: 193
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Aug. 2, 2015 06:00 PM EDT Reads: 1,139
Chuck Piluso presented a study of cloud adoption trends and the power and flexibility of IBM Power and Pureflex cloud solutions. Prior to Secure Infrastructure and Services, Mr. Piluso founded North American Telecommunication Corporation, a facilities-based Competitive Local Exchange Carrier licensed by the Public Service Commission in 10 states, serving as the company's chairman and president from 1997 to 2000. Between 1990 and 1997, Mr. Piluso served as chairman & founder of International Te...
Aug. 2, 2015 04:00 PM EDT Reads: 439