|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.
IoT is rapidly changing the way enterprises are using data to improve business decision-making. In order to derive business value, organizations must unlock insights from the data gathered and then act on these. In their session at @ThingsExpo, Eric Hoffman, Vice President at EastBanc Technologies, and Peter Shashkin, Head of Development Department at EastBanc Technologies, discussed how one organization leveraged IoT, cloud technology and data analysis to improve customer experiences and effi...
Jul. 1, 2016 06:30 PM EDT Reads: 733
Internet of @ThingsExpo has announced today that Chris Matthieu has been named tech chair of Internet of @ThingsExpo 2016 Silicon Valley. The 6thInternet of @ThingsExpo will take place on November 1–3, 2016, at the Santa Clara Convention Center in Santa Clara, CA.
Jul. 1, 2016 06:00 PM EDT Reads: 526
"Avere Systems is a hybrid cloud solution provider. We have customers that want to use cloud storage and we have customers that want to take advantage of cloud compute," explained Rebecca Thompson, VP of Marketing at Avere Systems, in this SYS-CON.tv interview at 18th Cloud Expo, held June 7-9, 2016, at the Javits Center in New York City, NY.
Jul. 1, 2016 05:45 PM EDT Reads: 717
Presidio Receives @EMCcorp Partner Services Quality Award | @ThingsExpo @Presidio #IoT #DigitalTransformation
Presidio has received the 2015 EMC Partner Services Quality Award from EMC Corporation for achieving outstanding service excellence and customer satisfaction as measured by the EMC Partner Services Quality (PSQ) program. Presidio was also honored as the 2015 EMC Americas Marketing Excellence Partner of the Year and 2015 Mid-Market East Partner of the Year. The EMC PSQ program is a project-specific survey program designed for partners with Service Partner designations to solicit customer feedbac...
Jul. 1, 2016 05:30 PM EDT Reads: 774
The cloud promises new levels of agility and cost-savings for Big Data, data warehousing and analytics. But it’s challenging to understand all the options – from IaaS and PaaS to newer services like HaaS (Hadoop as a Service) and BDaaS (Big Data as a Service). In her session at @BigDataExpo at @ThingsExpo, Hannah Smalltree, a director at Cazena, provided an educational overview of emerging “as-a-service” options for Big Data in the cloud. This is critical background for IT and data profession...
Jul. 1, 2016 05:15 PM EDT Reads: 631
Let’s face it, embracing new storage technologies, capabilities and upgrading to new hardware often adds complexity and increases costs. In his session at 18th Cloud Expo, Seth Oxenhorn, Vice President of Business Development & Alliances at FalconStor, discussed how a truly heterogeneous software-defined storage approach can add value to legacy platforms and heterogeneous environments. The result reduces complexity, significantly lowers cost, and provides IT organizations with improved efficie...
Jul. 1, 2016 05:00 PM EDT Reads: 446
What does it look like when you have access to cloud infrastructure and platform under the same roof? Let’s talk about the different layers of Technology as a Service: who cares, what runs where, and how does it all fit together. In his session at 18th Cloud Expo, Phil Jackson, Lead Technology Evangelist at SoftLayer, an IBM company, spoke about the picture being painted by IBM Cloud and how the tools being crafted can help fill the gaps in your IT infrastructure.
Jul. 1, 2016 04:30 PM EDT Reads: 1,087
Predictive analytics tools monitor, report, and troubleshoot in order to make proactive decisions about the health, performance, and utilization of storage. Most enterprises combine cloud and on-premise storage, resulting in blended environments of physical, virtual, cloud, and other platforms, which justifies more sophisticated storage analytics. In his session at 18th Cloud Expo, Peter McCallum, Vice President of Datacenter Solutions at FalconStor, discussed using predictive analytics to mon...
Jul. 1, 2016 04:30 PM EDT Reads: 736
Most organizations prioritize data security only after their data has already been compromised. Proactive prevention is important, but how can you accomplish that on a small budget? Learn how the cloud, combined with a defense and in-depth approach, creates efficiencies by transferring and assigning risk. Security requires a multi-defense approach, and an in-house team may only be able to cherry pick from the essential components. In his session at 19th Cloud Expo, Vlad Friedman, CEO/Founder o...
Jul. 1, 2016 04:15 PM EDT Reads: 438
[session] Extending Intelligence to IoT By @BsquareCorp | @ThingsExpo #IoT #M2M #API #DigitalTransformation
Ask someone to architect an Internet of Things (IoT) solution and you are guaranteed to see a reference to the cloud. This would lead you to believe that IoT requires the cloud to exist. However, there are many IoT use cases where the cloud is not feasible or desirable. In his session at @ThingsExpo, Dave McCarthy, Director of Products at Bsquare Corporation, will discuss the strategies that exist to extend intelligence directly to IoT devices and sensors, freeing them from the constraints of ...
Jul. 1, 2016 03:15 PM EDT Reads: 305
The pace of innovation, vendor lock-in, production sustainability, cost-effectiveness, and managing risk… In his session at 18th Cloud Expo, Dan Choquette, Founder of RackN, discussed how CIOs are challenged finding the balance of finding the right tools, technology and operational model that serves the business the best. He also discussed how clouds, open source software and infrastructure solutions have benefits but also drawbacks and how workload and operational portability between vendors ...
Jul. 1, 2016 03:00 PM EDT Reads: 1,272
The initial debate is over: Any enterprise with a serious commitment to IT is migrating to the cloud. But things are not so simple. There is a complex mix of on-premises, colocated, and public-cloud deployments. In this power panel at 18th Cloud Expo, moderated by Conference Chair Roger Strukhoff, Randy De Meno, Chief Technologist - Windows Products and Microsoft Partnerships at Commvault; Dave Landa, Chief Operating Officer at kintone; William Morrish, General Manager Product Sales at Interou...
Jul. 1, 2016 02:00 PM EDT Reads: 1,147
Extracting business value from Internet of Things (IoT) data doesn’t happen overnight. There are several requirements that must be satisfied, including IoT device enablement, data analysis, real-time detection of complex events and automated orchestration of actions. Unfortunately, too many companies fall short in achieving their business goals by implementing incomplete solutions or not focusing on tangible use cases. In his general session at @ThingsExpo, Dave McCarthy, Director of Products...
Jul. 1, 2016 01:15 PM EDT Reads: 326
There are several IoTs: the Industrial Internet, Consumer Wearables, Wearables and Healthcare, Supply Chains, and the movement toward Smart Grids, Cities, Regions, and Nations. There are competing communications standards every step of the way, a bewildering array of sensors and devices, and an entire world of competing data analytics platforms. To some this appears to be chaos. In this power panel at @ThingsExpo, moderated by Conference Chair Roger Strukhoff, Bradley Holt, Developer Advocate a...
Jul. 1, 2016 01:00 PM EDT Reads: 1,046
University of Colorado Athletics has selected FORTRUST, Colorado’s only Tier III Gold certified data center, as their official data center and colocation services provider, FORTRUST announced today. A nationally recognized and prominent collegiate athletics program, CU provides a high quality and comprehensive student-athlete experience. The program sponsors 17 varsity teams and in their history, the Colorado Buffaloes have collected an impressive 28 national championships. Maintaining uptime...
Jul. 1, 2016 01:00 PM EDT Reads: 888
The Internet of Things will challenge the status quo of how IT and development organizations operate. Or will it? Certainly the fog layer of IoT requires special insights about data ontology, security and transactional integrity. But the developmental challenges are the same: People, Process and Platform and how we integrate our thinking to solve complicated problems. In his session at 19th Cloud Expo, Craig Sproule, CEO of Metavine, will demonstrate how to move beyond today's coding paradigm ...
Jul. 1, 2016 01:00 PM EDT Reads: 698
Apixio Inc. has raised $19.3 million in Series D venture capital funding led by SSM Partners with participation from First Analysis, Bain Capital Ventures and Apixio’s largest angel investor. Apixio will dedicate the proceeds toward advancing and scaling products powered by its cognitive computing platform, further enabling insights for optimal patient care. The Series D funding comes as Apixio experiences strong momentum and increasing demand for its HCC Profiler solution, which mines unstruc...
Jul. 1, 2016 12:30 PM EDT Reads: 685
SYS-CON Events has announced today that Roger Strukhoff has been named conference chair of Cloud Expo and @ThingsExpo 2016 Silicon Valley. The 19th Cloud Expo and 6th @ThingsExpo will take place on November 1-3, 2016, at the Santa Clara Convention Center in Santa Clara, CA. "The Internet of Things brings trillions of dollars of opportunity to developers and enterprise IT, no matter how you measure it," stated Roger Strukhoff. "More importantly, it leverages the power of devices and the Interne...
Jul. 1, 2016 12:00 PM EDT Reads: 655
When it comes to cloud computing, the ability to turn massive amounts of compute cores on and off on demand sounds attractive to IT staff, who need to manage peaks and valleys in user activity. With cloud bursting, the majority of the data can stay on premises while tapping into compute from public cloud providers, reducing risk and minimizing need to move large files. In his session at 18th Cloud Expo, Scott Jeschonek, Director of Product Management at Avere Systems, discussed the IT and busin...
Jul. 1, 2016 12:00 PM EDT Reads: 632
"My role is working with customers, helping them go through this digital transformation. I spend a lot of time talking to banks, big industries, manufacturers working through how they are integrating and transforming their IT platforms and moving them forward," explained William Morrish, General Manager Product Sales at Interoute, in this SYS-CON.tv interview at 18th Cloud Expo, held June 7-9, 2016, at the Javits Center in New York City, NY.
Jul. 1, 2016 11:30 AM EDT Reads: 599