|By Richard Minney||
|January 7, 2013 07:45 AM EST||
The gap is widening between legacy ERP and cloud ERP as traditional on-premise solutions are shifting toward delivery of applications over the Internet. Put your ear in the air to hear the rumblings. ERP in the Cloud is here to stay.
Recent earnings reports from several web-based business software providers along with a significant increase in the number of announcements pertaining to new cloud ERP providers are signaling a clear trend in the direction of a rapidly changing business environment for software vendors and business customers alike.
One Version of the Truth
Enterprise resource planning (ERP), despite not being the most exciting thing in the world, still remains a vital element in the efforts of many companies and organizations to stay competitive in an increasingly tough economic climate. This underlying foundation continues to drive demand for innovative new approaches in delivering one source of information or "one version of the truth" that these enterprises rely on to compete.
The sudden growth spurt for ERP in the Cloud is largely driven by the vast cost savings resulting from the increased productivity and efficiency that characterize the move to web-based business applications.
Industry insiders have recently begun to draw attention to the upsurge in new ERP developers as an indication that the competitive landscape has shifted, and that long established players will need to adapt to in order to maintain their market share in the years ahead.
As a result, many long established entities like Microsoft and SAP have been seen ramping up their cloud offerings as they prepare to take on the new players in the space. Whether or not these current leaders will be able to maintain their positions at the top is uncertain as they are faced with not just a new platform, but new paradigms in marketing, pricing, support, organization structure and infrastructure reflected by the newer ERP in the Cloud solutions.
An Innovative Surge
Some industry analysts have pointed out that the current leading ERP software vendors and their systems implementation partners are finding the transition to cloud-based offerings difficult since business processes native to ERP in the Cloud tend to require much less time and expense to implement than the on-premise equivalents they've traditionally deployed. However, this is one of the elements of ERP in the Cloud that is most attractive to established (and new) clients and users.
Legacy on-premise ERP offerings tend to be geared toward Fortune 2000 companies that can afford the effort and expense of having armies of implementation consultants working on their sites for months or even years to get the software tuned to meet their so-called "unique" requirements. Not only is adoption slow, but subsequent upgrades are even slower since the original business case for the initial implementation is not there, and the appetite to spend sometimes millions of dollars on a technical upgrade with no obvious functional or business impact is also missing.
What is increasingly being seen from several of the new cloud-based ERP providers are approaches that are more externally aware and less reliant on implementation consultants to tune and tweak (and test) the software.
The newer breed of ERP solutions tend to be simpler and more focused on a specific market need so that "plug-and-play" really means what it says and are not just empty words on a PowerPoint. In other words, the new solutions have been designed from the ground up for the cloud and for mobile and are not simply pouring old wine into new bottles.
Users still have a challenge in identifying which new innovations spurred by the increased competition will allow them to hit the ground running as they move to adopt ERP in the Cloud going forward. They still face challenges with any change in systems and processes at the heart of their business as is the case with a new ERP, such as data migration, business process refinement and organizational alignment and education.
On the other hand, any of the new ERP players may find it difficult initially to match the information depth and maturity of established legacy ERP providers.
Just when it becomes far more critical that ERP software works "out of the box" (since the army of implementation consultants toiling over bugs and fixes for many months is a thing of the past) the vendors who are at the forefront of the market do not have a customer-base numbering in the thousands or tens of thousands to fall back on.
New ERP suppliers tend to also lack the added value of experience in aggregating and evaluation provided by legacy integrators just at the time when they, not the legacy on-premise ERP providers, have the option to aggregate and seek value out of so much more data across a potentially vast customer base.
What Is the Solution?
Are we seeing the best and latest ERP applications from newer upstarts being combined with the maturity and financial depth of legacy ERP providers to provide something that is of compelling value for money even for smaller businesses? No.
Instead, the entrenched legacy ERP providers are acquiring cloud-based point solutions and either attempting to bolt them onto unproven or failed cloud-based offerings of their own, or simply offering up siloed standalone cloud-based applications stitched together, leaving the ultimate pain of holding everything together to their long-suffering customers and their customers' well-paid consultants.
The bottom line is that ERP in the Cloud is fueling an innovation burst that is changing vendor capabilities along with customer and investor expectations. But we are not sure if the legacy ERP providers will keep up. Only time will tell.
As organizations shift towards IT-as-a-service models, the need for managing & protecting data residing across physical, virtual, and now cloud environments grows with it. CommVault can ensure protection & E-Discovery of your data - whether in a private cloud, a Service Provider delivered public cloud, or a hybrid cloud environment – across the heterogeneous enterprise.
Nov. 29, 2015 06:00 PM EST Reads: 230
Today air travel is a minefield of delays, hassles and customer disappointment. Airlines struggle to revitalize the experience. GE and M2Mi will demonstrate practical examples of how IoT solutions are helping airlines bring back personalization, reduce trip time and improve reliability. In their session at @ThingsExpo, Shyam Varan Nath, Principal Architect with GE, and Dr. Sarah Cooper, M2Mi’s VP Business Development and Engineering, explored the IoT cloud-based platform technologies driving t...
Nov. 29, 2015 06:00 PM EST Reads: 440
The Internet of Things (IoT) is growing rapidly by extending current technologies, products and networks. By 2020, Cisco estimates there will be 50 billion connected devices. Gartner has forecast revenues of over $300 billion, just to IoT suppliers. Now is the time to figure out how you’ll make money – not just create innovative products. With hundreds of new products and companies jumping into the IoT fray every month, there’s no shortage of innovation. Despite this, McKinsey/VisionMobile data...
Nov. 29, 2015 02:00 PM EST Reads: 485
As organizations realize the scope of the Internet of Things, gaining key insights from Big Data, through the use of advanced analytics, becomes crucial. However, IoT also creates the need for petabyte scale storage of data from millions of devices. A new type of Storage is required which seamlessly integrates robust data analytics with massive scale. These storage systems will act as “smart systems” provide in-place analytics that speed discovery and enable businesses to quickly derive meaningf...
Nov. 29, 2015 12:30 PM EST Reads: 427
In his keynote at @ThingsExpo, Chris Matthieu, Director of IoT Engineering at Citrix and co-founder and CTO of Octoblu, focused on building an IoT platform and company. He provided a behind-the-scenes look at Octoblu’s platform, business, and pivots along the way (including the Citrix acquisition of Octoblu).
Nov. 29, 2015 12:00 PM EST Reads: 528
In his General Session at 17th Cloud Expo, Bruce Swann, Senior Product Marketing Manager for Adobe Campaign, explored the key ingredients of cross-channel marketing in a digital world. Learn how the Adobe Marketing Cloud can help marketers embrace opportunities for personalized, relevant and real-time customer engagement across offline (direct mail, point of sale, call center) and digital (email, website, SMS, mobile apps, social networks, connected objects).
Nov. 29, 2015 11:45 AM EST Reads: 328
In recent years, at least 40% of companies using cloud applications have experienced data loss. One of the best prevention against cloud data loss is backing up your cloud data. In his General Session at 17th Cloud Expo, Sam McIntyre, Partner Enablement Specialist at eFolder, presented how organizations can use eFolder Cloudfinder to automate backups of cloud application data. He also demonstrated how easy it is to search and restore cloud application data using Cloudfinder.
Nov. 29, 2015 10:00 AM EST Reads: 203
The Internet of Everything is re-shaping technology trends–moving away from “request/response” architecture to an “always-on” Streaming Web where data is in constant motion and secure, reliable communication is an absolute necessity. As more and more THINGS go online, the challenges that developers will need to address will only increase exponentially. In his session at @ThingsExpo, Todd Greene, Founder & CEO of PubNub, exploreed the current state of IoT connectivity and review key trends and t...
Nov. 29, 2015 09:45 AM EST Reads: 453
With all the incredible momentum behind the Internet of Things (IoT) industry, it is easy to forget that not a single CEO wakes up and wonders if “my IoT is broken.” What they wonder is if they are making the right decisions to do all they can to increase revenue, decrease costs, and improve customer experience – effectively the same challenges they have always had in growing their business. The exciting thing about the IoT industry is now these decisions can be better, faster, and smarter. Now ...
Nov. 29, 2015 08:00 AM EST Reads: 277
Discussions of cloud computing have evolved in recent years from a focus on specific types of cloud, to a world of hybrid cloud, and to a world dominated by the APIs that make today's multi-cloud environments and hybrid clouds possible. In this Power Panel at 17th Cloud Expo, moderated by Conference Chair Roger Strukhoff, panelists addressed the importance of customers being able to use the specific technologies they need, through environments and ecosystems that expose their APIs to make true ...
Nov. 29, 2015 06:00 AM EST Reads: 558
Too often with compelling new technologies market participants become overly enamored with that attractiveness of the technology and neglect underlying business drivers. This tendency, what some call the “newest shiny object syndrome” is understandable given that virtually all of us are heavily engaged in technology. But it is also mistaken. Without concrete business cases driving its deployment, IoT, like many other technologies before it, will fade into obscurity.
Nov. 29, 2015 06:00 AM EST Reads: 377
The Internet of Things is clearly many things: data collection and analytics, wearables, Smart Grids and Smart Cities, the Industrial Internet, and more. Cool platforms like Arduino, Raspberry Pi, Intel's Galileo and Edison, and a diverse world of sensors are making the IoT a great toy box for developers in all these areas. In this Power Panel at @ThingsExpo, moderated by Conference Chair Roger Strukhoff, panelists discussed what things are the most important, which will have the most profound...
Nov. 29, 2015 04:30 AM EST Reads: 487
Growth hacking is common for startups to make unheard-of progress in building their business. Career Hacks can help Geek Girls and those who support them (yes, that's you too, Dad!) to excel in this typically male-dominated world. Get ready to learn the facts: Is there a bias against women in the tech / developer communities? Why are women 50% of the workforce, but hold only 24% of the STEM or IT positions? Some beginnings of what to do about it! In her Day 2 Keynote at 17th Cloud Expo, San...
Nov. 29, 2015 03:00 AM EST Reads: 598
Apps and devices shouldn't stop working when there's limited or no network connectivity. Learn how to bring data stored in a cloud database to the edge of the network (and back again) whenever an Internet connection is available. In his session at 17th Cloud Expo, Ben Perlmutter, a Sales Engineer with IBM Cloudant, demonstrated techniques for replicating cloud databases with devices in order to build offline-first mobile or Internet of Things (IoT) apps that can provide a better, faster user e...
Nov. 29, 2015 02:45 AM EST Reads: 429
In today's enterprise, digital transformation represents organizational change even more so than technology change, as customer preferences and behavior drive end-to-end transformation across lines of business as well as IT. To capitalize on the ubiquitous disruption driving this transformation, companies must be able to innovate at an increasingly rapid pace. Traditional approaches for driving innovation are now woefully inadequate for keeping up with the breadth of disruption and change facin...
Nov. 29, 2015 02:30 AM EST Reads: 504
Cloud computing delivers on-demand resources that provide businesses with flexibility and cost-savings. The challenge in moving workloads to the cloud has been the cost and complexity of ensuring the initial and ongoing security and regulatory (PCI, HIPAA, FFIEC) compliance across private and public clouds. Manual security compliance is slow, prone to human error, and represents over 50% of the cost of managing cloud applications. Determining how to automate cloud security compliance is critical...
Nov. 28, 2015 08:00 PM EST Reads: 439
With major technology companies and startups seriously embracing IoT strategies, now is the perfect time to attend @ThingsExpo 2016 in New York and Silicon Valley. Learn what is going on, contribute to the discussions, and ensure that your enterprise is as "IoT-Ready" as it can be! Internet of @ThingsExpo, taking place Nov 3-5, 2015, at the Santa Clara Convention Center in Santa Clara, CA, is co-located with 17th Cloud Expo and will feature technical sessions from a rock star conference faculty ...
Nov. 28, 2015 12:00 PM EST Reads: 562
Internet of @ThingsExpo, taking place June 7-9, 2016 at Javits Center, New York City and Nov 1-3, 2016, at the Santa Clara Convention Center in Santa Clara, CA, is co-located with the 18th International @CloudExpo and will feature technical sessions from a rock star conference faculty and the leading industry players in the world and ThingsExpo New York Call for Papers is now open.
Nov. 27, 2015 12:00 PM EST Reads: 559
We are rapidly moving to a brave new world of interconnected smart homes, cars, offices and factories known as the Internet of Things (IoT). Sensors and monitoring devices will touch every part of our lives. Let's take a closer look at the Internet of Things. The Internet of Things is a worldwide network of objects and devices connected to the Internet. They are electronics, sensors, software and more. These objects connect to the Internet and can be controlled remotely via apps and programs. ...
Nov. 26, 2015 02:15 PM EST Reads: 516
There are over 120 breakout sessions in all, with Keynotes, General Sessions, and Power Panels adding to three days of incredibly rich presentations and content. Join @ThingsExpo conference chair Roger Strukhoff (@IoT2040), June 7-9, 2016 in New York City, for three days of intense 'Internet of Things' discussion and focus, including Big Data's indespensable role in IoT, Smart Grids and Industrial Internet of Things, Wearables and Consumer IoT, as well as (new) IoT's use in Vertical Markets.
Nov. 25, 2015 12:00 PM EST Reads: 554