|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.
SimpleECM is the only platform to offer a powerful combination of enterprise content management (ECM) services, capture solutions, and third-party business services providing simplified integrations and workflow development for solution providers. SimpleECM is opening the market to businesses of all sizes by reinventing the delivery of ECM services. Our APIs make the development of ECM services simple with the use of familiar technologies for a frictionless integration directly into web applicat...
Oct. 20, 2014 05:00 PM EDT Reads: 1,373
SYS-CON Events announced today that Verizon has been named "Gold Sponsor" of SYS-CON's 15th International Cloud Expo®, which will take place on November 4-6, 2014, at the Santa Clara Convention Center in Santa Clara, CA. Verizon Enterprise Solutions creates global connections that generate growth, drive business innovation and move society forward. With industry-specific solutions and a full range of global wholesale offerings provided over the company's secure mobility, cloud, strategic network...
Oct. 20, 2014 05:00 PM EDT Reads: 451
Cloudwick, the leading big data DevOps service and solution provider to the Fortune 1000, announced Big Loop, its multi-vendor operations platform. Cloudwick Big Loop creates greater collaboration between Fortune 1000 IT staff, developers and their database management systems as well as big data vendors. This allows customers to comprehensively manage and oversee their entire infrastructure, which leads to more successful production cluster operations, and scale-out. Cloudwick Big Loop supports ...
Oct. 20, 2014 04:15 PM EDT Reads: 1,561
Software AG helps organizations transform into Digital Enterprises, so they can differentiate from competitors and better engage customers, partners and employees. Using the Software AG Suite, companies can close the gap between business and IT to create digital systems of differentiation that drive front-line agility. We offer four on-ramps to the Digital Enterprise: alignment through collaborative process analysis; transformation through portfolio management; agility through process automation...
Oct. 20, 2014 03:45 PM EDT Reads: 1,448
Headquartered in Santa Monica, California, Bitium was founded by Kriz and Erik Gustavson. The 1,500 cloud-based application using Bitium’s analytics, app management, and single sign-on services include bug trackers, customer service dashboards, Google Apps, and social networks. The firm states website administrators can do multiple tasks online without revealing passwords. Bitium’s advisors include Microsoft’s former CMO and the former senior vice president of strategy, the founder and CEO of Li...
Oct. 20, 2014 03:00 PM EDT Reads: 1,697
Things are being built upon cloud foundations to transform organizations. This CEO Power Panel at 15th Cloud Expo, moderated by Roger Strukhoff, Cloud Expo and @ThingsExpo conference chair, will address the big issues involving these technologies and, more important, the results they will achieve. How important are public, private, and hybrid cloud to the enterprise? How does one define Big Data? And how is the IoT tying all this together?
Oct. 20, 2014 12:00 PM EDT Reads: 1,514
The 3rd International Internet of @ThingsExpo, co-located with the 16th International Cloud Expo - to be held June 9-11, 2015, at the Javits Center in New York City, NY - announces that its Call for Papers is now open. The Internet of Things (IoT) is the biggest idea since the creation of the Worldwide Web more than 20 years ago.
Oct. 19, 2014 10:45 PM EDT Reads: 1,901
The Industrial Internet revolution is now underway, enabled by connected machines and billions of devices that communicate and collaborate. The massive amounts of Big Data requiring real-time analysis is flooding legacy IT systems and giving way to cloud environments that can handle the unpredictable workloads. Yet many barriers remain until we can fully realize the opportunities and benefits from the convergence of machines and devices with Big Data and the cloud, including interoperability, da...
Oct. 19, 2014 10:00 PM EDT Reads: 1,401
All major researchers estimate there will be tens of billions devices - computers, smartphones, tablets, and sensors - connected to the Internet by 2020. This number will continue to grow at a rapid pace for the next several decades. Over the summer Gartner released its much anticipated annual Hype Cycle report and the big news is that Internet of Things has now replaced Big Data as the most hyped technology. Indeed, we're hearing more and more about this fascinating new technological paradigm. ...
Oct. 19, 2014 09:00 PM EDT Reads: 1,621
Cultural, regulatory, environmental, political and economic (CREPE) conditions over the past decade are creating cross-industry solution spaces that require processes and technologies from both the Internet of Things (IoT), and Data Management and Analytics (DMA). These solution spaces are evolving into Sensor Analytics Ecosystems (SAE) that represent significant new opportunities for organizations of all types. Public Utilities throughout the world, providing electricity, natural gas and water,...
Oct. 19, 2014 07:30 PM EDT Reads: 1,334
The Internet of Things needs an entirely new security model, or does it? Can we save some old and tested controls for the latest emerging and different technology environments? In his session at Internet of @ThingsExpo, Davi Ottenheimer, EMC Senior Director of Trust, will review hands-on lessons with IoT devices and reveal privacy options and a new risk balance you might not expect.
Oct. 19, 2014 11:00 AM EDT Reads: 1,844
The information technology sphere undergoes what we like to call a paradigm shift, sea change or plain old ‘upheaval’ roughly every five years or so. Don’t ask anybody why this half decade cyclicality exists; it just has to be so. Accept that reinvention happens constantly and that major seismic shifts are tangibly felt by us human beings roughly every 1826.21 days… and we can move on.
Oct. 18, 2014 11:00 PM EDT Reads: 1,416
There’s Big Data, then there’s really Big Data from the Internet of Things. IoT is evolving to include many data possibilities like new types of event, log and network data. The volumes are enormous, generating tens of billions of logs per day, which raise data challenges. Early IoT deployments are relying heavily on both the cloud and managed service providers to navigate these challenges. In her session at 6th Big Data Expo®, Hannah Smalltree, Director at Treasure Data, to discuss how IoT, B...
Oct. 18, 2014 05:00 PM EDT Reads: 1,864
SYS-CON Events announced today that Objectivity, Inc., the leader in real-time, complex Big Data solutions, will exhibit at SYS-CON's 15th International Cloud Expo®, which will take place on November 4–6, 2014, at the Santa Clara Convention Center in Santa Clara, CA. Objectivity, Inc. is the Enterprise Database leader of real-time, complex Big Data solutions. Our leading edge technologies – InfiniteGraph®, The Distributed Graph Database™ and Objectivity/DB®, a distributed and scalable object ma...
Oct. 18, 2014 12:00 PM EDT Reads: 1,670
In their session at DevOps Summit, Stan Klimoff, CTO of Qubell, and Mike Becker, Senior Data Engineer for RingCentral, will share the lessons learned from implementing CI/CD pipeline on AWS for a customer analytics project powered by Cloudera Hadoop, HP Vertica and Tableau. Stan Klimoff is CTO of Qubell, the enterprise DevOps platform. Stan has more than a decade of experience building distributed systems for companies such as eBay, Cisco and Seagate. Qubell is helping enterprises to become mor...
Oct. 17, 2014 08:00 PM EDT Reads: 1,571
The major cloud platforms defy a simple, side-by-side analysis. Each of the major IaaS public-cloud platforms offers their own unique strengths and functionality. Options for on-site private cloud are diverse as well, and must be designed and deployed while taking existing legacy architecture and infrastructure into account. Then the reality is that most enterprises are embarking on a hybrid cloud strategy and programs. In this Power Panel at 15th Cloud Expo, moderated by Ashar Baig, Research ...
Oct. 17, 2014 07:45 PM EDT Reads: 1,569
Big Data means many things to many people. From November 4-6 at the Santa Clara Convention Center, thousands of people will gather at Big Data Expo to discuss what it means to them, how they are implementing it, and how Big Data plays an integral role in the maturing cloud computing world and emerging Internet of Things. Attend Big Data Expo and make your contribution. Register for Big Data Expo "FREE" with Discount Code "BigDataOCTOBER" by October 31
Oct. 17, 2014 03:00 PM EDT Reads: 1,646
The evolution of the database is under constant upheaval, discussion, debate and (if you will excuse the expression) 'analysis.' This basic truth is now more relevant, pertinent and pressing than ever due to the prevalence of Big Data (and the need to impose analytics of insight upon it) driven by social, mobile, cloud and of course the Internet of (Every) Things. Today then, as a staple of our IT infrastructure, databases have been around for over 50 years now with first references of the ter...
Oct. 17, 2014 03:00 PM EDT Reads: 1,589
SYS-CON Events announced today that Cloudian, Inc., the leading provider of hybrid cloud storage solutions, has been named “Bronze Sponsor” of SYS-CON's 15th International Cloud Expo®, which will take place on November 4–6, 2014, at the Santa Clara Convention Center in Santa Clara, CA. Cloudian is a Foster City, Calif.-based software company specializing in cloud storage. Cloudian HyperStore® is an S3-compatible cloud object storage platform that enables service providers and enterprises to bui...
Oct. 17, 2014 09:00 AM EDT Reads: 1,585
What process has your provider undertaken to ensure that the cloud tenant will receive predictable performance and service? What was involved in the planning? Who owns and operates the data center? What technology is being used? How is it being supported? In his session at 14th Cloud Expo, Dave Weisbrot, Cloud Business Manager for QTS, will provide the attendees a look into what it takes to stand up and stand behind a highly available certified cloud IaaS.
Oct. 16, 2014 09:15 PM EDT Reads: 1,119