Why Cloud Computing is the Future for ERP Implementations?

We are in the midst of a radical change in technology preferences. IDC, a premier global provider of market intelligence, wrote that “Cloud Apps are key to supporting growth of small and medium businesses.” IDC calls the current environment the “IT Industry’s 3rd Platform for Innovation and Growth” and reports that this innovation stage is defined by “an explosion of innovation and value creation on top of the 3rd Platform’s Cloud, Mobile, Social and Big Data/Analytics Foundation.”

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In 2009, 80% of midmarket companies preferred an Enterprise Resource Planning (ERP) solution installed on premises, but that has changed drastically.

In the 2014 report “The Pros and Cons of SaaS ERP”, Mint Jutras wrote about the decline in the willingness of companies to consider traditional on-premises deployments. That decline began in 2011, and between 2011 and 2013 that percentage “literally dropped off a cliff”. Most SMB’s are now considering Cloud ERP applications.

The market research firm Aberdeen found that the “Best-in-Class midmarket organizations”representing the top 20% of companies surveyed were over twice as likely to have a cloud ERP solution. Clearly, the top midmarket performers have already made the move to the cloud for their ERP applications.

SMB Group, an analyst firm that specializes in small- and medium-sized businesses, issued a 2016 Report on “The Business-Technology Performance Connection for SMBs”.

Since 2010, adoption of cloud computing has been on the rise in the SMB space, with more and more businesses seeing it as the most cost-effective, flexible, and fastest way to deploy and support their IT infrastructure and business applications without the need for significant capital investments and staffing increases.

Listen to the recording of a recent webinar as the SMB industry analyst presents the finding of their “The Business-Technology Performance Connection” report.

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Cliff HallComment