Until recently, an on-premise software system was the norm in the enterprise resource planning (ERP) space. Companies paid one time for licenses and their enterprise moved along just fine. But it could be time to make a new move—to the cloud.
If you have reservations about moving to the cloud, know that cloud-based ERP software is ready for consumption and its adoption is becoming widespread. In fact, according to Gartner, by 2021, 55 percent of Oracle Cloud Services on-premises customers will have moved 80 percent of their on-premises capabilities to Oracle Cloud Applications. And here’s why you should too:
- Relying on the cloud creates efficiency.
Because cloud-based software is hosted on a vendor’s server, companies that move to the cloud, no longer need to rely on hardware or equipment that can breakdown or become obsolete. With cloud-based software, the vendor makes updates on their end. And if there’s a software issue, the vendor can adjust it to meet your specific needs. Curious about year end reporting? With access to reports and dashboards, Oracle cloud services can get that information in just a click! In short, by harnessing the power of the cloud, supply chain innovators have the ability realize 60 percent higher proﬁt margins than their competitors who stick with older technology.1
- Moving to the cloud offers cost savings.
Paying for on-premise software licenses, hardware, data centers, and an IT team to support the software can be costly. But using products like Oracle ERP Cloud allows for more predictable monthly costs and is a lower up-front investment. Gartner predicts operational ERPs delivered as cloud services will consume 65 percent of ERP spending by 2025, with many enterprises switching from licenses to cloud by 2020.2
- Taking advantage of the cloud provides a high level of security.
Many people believe the myth that the cloud is not secure. But in reality, the cloud can be more secure than on-premise applications. For example, according to IsBuzzNews, “Small businesses stand to benefit the most from switching to the cloud, mainly because cloud providers generally have better security measures than a smaller business can afford for itself.”
Is an end in sight for on-premise?
As more companies move to the cloud, organizations still relying upon legacy on-premise systems for critical ERP and supply chain functions must understand that those platforms are rapidly becoming terminal. Cloud-based solutions have become increasingly appealing to customers as well as a more central part of vendor portfolios.
Although it may take more than a decade for traditional ERP and Supply Chain Management SCM applications to be fully displaced by the cloud, they will become impractical to rely on sooner than that.
Migrating your ERP applications to the cloud isn’t just the best way to guarantee the agility and sustainability of your operations; it will soon be the onlyway.
Starting is the hard part, the rest can be done in partnership with a trustworthy vendor. That said, the best thing you can do right now is starting the process. Do your homework—beginning with downloading this ebook, which maps out the journey to the cloud. For more information on whether the cloud is right for your enterprise, get to know Gartner’s Magic Quadarant.
1,2(2019) Inspirage Mission Digital Supply Chain eBook