Inspirage recently conducted a research study on Cloud Computing. This study was conducted across a range of industries and companies from 500 employees all the way to 50,000 employees. The study highlighted that over 75% of businesses were already using cloud applications somewhere in their organization. Cost and efficiency were highlighted as the biggest drivers for cloud adoption. That adoption of cloud was more prominent on non-mission critical applications e.g. email, HCM and other Edge applications. As cloud ERP matures, there is a greater reason for an organization to evaluate the uptake of these applications across the wider enterprise. The challenge companies face is that Total Cost of Ownership (TCO) between cloud and on-premise application is not a simple comparison.
TCO will be dependent on the enterprise and the type of processes the organization runs. The best approach is to consider a list of attributes for the TCO model and the degree to which they are relevant for your enterprise. These attributes include, but are not limited to:
- Solution Comparison
- Assessing Current On-Premise State
- Assessing Cloud Future State
Those considering a move to the cloud should assess the true value in moving the cloud. This should be more than just costs, but also on IT’s ability to deliver more value to the business. There should also be a view of managing the interim hybrid landscape as well as the future desired end state.
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