|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.
The Internet of Things (IoT) is about the digitization of physical assets including sensors, devices, machines, gateways, and the network. It creates possibilities for significant value creation and new revenue generating business models via data democratization and ubiquitous analytics across IoT networks. The explosion of data in all forms in IoT requires a more robust and broader lens in order to enable smarter timely actions and better outcomes. Business operations become the key driver of I...
Aug. 29, 2015 07:30 PM EDT Reads: 372
In their Live Hack” presentation at 17th Cloud Expo, Stephen Coty and Paul Fletcher, Chief Security Evangelists at Alert Logic, will provide the audience with a chance to see a live demonstration of the common tools cyber attackers use to attack cloud and traditional IT systems. This “Live Hack” uses open source attack tools that are free and available for download by anybody. Attendees will learn where to find and how to operate these tools for the purpose of testing their own IT infrastructu...
Aug. 29, 2015 07:15 PM EDT Reads: 368
SYS-CON Events announced today that DataClear Inc. will exhibit at the 17th International Cloud Expo®, which will take place on November 3–5, 2015, at the Santa Clara Convention Center in Santa Clara, CA. The DataClear ‘BlackBox’ is the only solution that moves your PC, browsing and data out of the United States and away from prying (and spying) eyes. Its solution automatically builds you a clean, on-demand, virus free, new virtual cloud based PC outside of the United States, and wipes it clean...
Aug. 29, 2015 07:15 PM EDT Reads: 360
SYS-CON Events announced today that IceWarp will exhibit at the 17th International Cloud Expo®, which will take place on November 3–5, 2015, at the Santa Clara Convention Center in Santa Clara, CA. IceWarp, the leader of cloud and on-premise messaging, delivers secured email, chat, documents, conferencing and collaboration to today's mobile workforce, all in one unified interface
Aug. 29, 2015 06:00 PM EDT Reads: 372
Culture is the most important ingredient of DevOps. The challenge for most organizations is defining and communicating a vision of beneficial DevOps culture for their organizations, and then facilitating the changes needed to achieve that. Often this comes down to an ability to provide true leadership. As a CIO, are your direct reports IT managers or are they IT leaders? The hard truth is that many IT managers have risen through the ranks based on their technical skills, not their leadership ab...
Aug. 29, 2015 04:00 PM EDT Reads: 313
Cloud and datacenter migration innovator AppZero has joined the Microsoft Enterprise Cloud Alliance Program. AppZero is a fast, flexible way to move Windows Server applications from any source machine – physical or virtual – to any destination server, in any cloud or datacenter, using its patented container technology. AppZero’s container is also called a Virtual Application Appliance (VAA). To facilitate Microsoft Azure onboarding, AppZero has two purpose-built offerings: AppZero SP for Azure,...
Aug. 29, 2015 01:00 PM EDT Reads: 142
WSM International, the pioneer and leader in server migration services, has announced an agreement with WHOA.com, a leader in providing secure public, private and hybrid cloud computing services. Under terms of the agreement, WSM will provide migration services to WHOA.com customers to relocate some or all of their applications, digital assets, and other computing workloads to WHOA.com enterprise-class, secure cloud infrastructure. The migration services include detailed evaluation and planning...
Aug. 29, 2015 12:00 PM EDT Reads: 139
This Enterprise Strategy Group lab validation report of the NEC Express5800/R320 server with Intel® Xeon® processor presents the benefits of 99.999% uptime NEC fault-tolerant servers that lower overall virtualized server total cost of ownership. This report also includes survey data on the significant costs associated with system outages impacting enterprise and web applications. Click Here to Download Report Now!
Aug. 29, 2015 11:45 AM EDT Reads: 147
IBM’s Blue Box Cloud, powered by OpenStack, is now available in any of IBM’s globally integrated cloud data centers running SoftLayer infrastructure. Less than 90 days after its acquisition of Blue Box, IBM has integrated its Blue Box Cloud Dedicated private-cloud-as-a-service into its broader portfolio of OpenStack® based solutions. The announcement, made today at the OpenStack Silicon Valley event, further highlights IBM’s continued support to deliver OpenStack solutions across all cloud depl...
Aug. 29, 2015 11:30 AM EDT Reads: 196
SYS-CON Events announced today that Pythian, a global IT services company specializing in helping companies leverage disruptive technologies to optimize revenue-generating systems, has been named “Bronze Sponsor” of SYS-CON's 17th Cloud Expo, which will take place on November 3–5, 2015, at the Santa Clara Convention Center in Santa Clara, CA. Founded in 1997, Pythian is a global IT services company that helps companies compete by adopting disruptive technologies such as cloud, Big Data, advance...
Aug. 29, 2015 11:00 AM EDT Reads: 242
SYS-CON Events announced today that HPM Networks will exhibit at the 17th International Cloud Expo®, which will take place on November 3–5, 2015, at the Santa Clara Convention Center in Santa Clara, CA. For 20 years, HPM Networks has been integrating technology solutions that solve complex business challenges. HPM Networks has designed solutions for both SMB and enterprise customers throughout the San Francisco Bay Area.
Aug. 29, 2015 09:30 AM EDT Reads: 848
SYS-CON Events announced today that G2G3 will exhibit at SYS-CON's @DevOpsSummit Silicon Valley, which will take place on November 3–5, 2015, at the Santa Clara Convention Center in Santa Clara, CA. Based on a collective appreciation for user experience, design, and technology, G2G3 is uniquely qualified and motivated to redefine how organizations and people engage in an increasingly digital world.
Aug. 29, 2015 09:30 AM EDT Reads: 435
Introducing Containers & Microservices Bootcamp at @CloudExpo Silicon Valley | #Containers #Microservices
SYS-CON Events announced today the Containers & Microservices Bootcamp, being held November 3-4, 2015, in conjunction with 17th Cloud Expo, @ThingsExpo, and @DevOpsSummit at the Santa Clara Convention Center in Santa Clara, CA. This is your chance to get started with the latest technology in the industry. Combined with real-world scenarios and use cases, the Containers and Microservices Bootcamp, led by Janakiram MSV, a Microsoft Regional Director, will include presentations as well as hands-on...
Aug. 29, 2015 09:15 AM EDT Reads: 181
SYS-CON Events announced today that Micron Technology, Inc., a global leader in advanced semiconductor systems, will exhibit at the 17th International Cloud Expo®, which will take place on November 3–5, 2015, at the Santa Clara Convention Center in Santa Clara, CA. Micron’s broad portfolio of high-performance memory technologies – including DRAM, NAND and NOR Flash – is the basis for solid state drives, modules, multichip packages and other system solutions. Backed by more than 35 years of tech...
Aug. 29, 2015 08:45 AM EDT Reads: 198
Through WebRTC, audio and video communications are being embedded more easily than ever into applications, helping carriers, enterprises and independent software vendors deliver greater functionality to their end users. With today’s business world increasingly focused on outcomes, users’ growing calls for ease of use, and businesses craving smarter, tighter integration, what’s the next step in delivering a richer, more immersive experience? That richer, more fully integrated experience comes ab...
Aug. 29, 2015 08:45 AM EDT Reads: 583
In today's digital world, change is the one constant. Disruptive innovations like cloud, mobility, social media, and the Internet of Things have reshaped the market and set new standards in customer expectations. To remain competitive, businesses must tap the potential of emerging technologies and markets through the rapid release of new products and services. However, the rigid and siloed structures of traditional IT platforms and processes are slowing them down – resulting in lengthy delivery ...
Aug. 29, 2015 07:45 AM EDT Reads: 557
U.S. companies are desperately trying to recruit and hire skilled software engineers and developers, but there is simply not enough quality talent to go around. Tiempo Development is a nearshore software development company. Our headquarters are in AZ, but we are a pioneer and leader in outsourcing to Mexico, based on our three software development centers there. We have a proven process and we are experts at providing our customers with powerful solutions. We transform ideas into reality.
Aug. 29, 2015 05:45 AM EDT Reads: 511
Any Ops team trying to support a company in today’s cloud-connected world knows that a new way of thinking is required – one just as dramatic than the shift from Ops to DevOps. The diversity of modern operations requires teams to focus their impact on breadth vs. depth. In his session at DevOps Summit, Adam Serediuk, Director of Operations at xMatters, Inc., will discuss the strategic requirements of evolving from Ops to DevOps, and why modern Operations has begun leveraging the “NoOps” approa...
Aug. 29, 2015 05:30 AM EDT Reads: 347
Organizations from small to large are increasingly adopting cloud solutions to deliver essential business services at a much lower cost. According to cyber security experts, the frequency and severity of cyber-attacks are on the rise, causing alarm to businesses and customers across a variety of industries. To defend against exploits like these, a company must adopt a comprehensive security defense strategy that is designed for their business. In 2015, organizations such as United Airlines, Sony...
Aug. 29, 2015 05:00 AM EDT Reads: 413
Red Hat is investing in Tesora, the number one contributor to OpenStack Trove Database as a Service (DBaaS) also ranked among the top 20 companies contributing to OpenStack overall. Tesora, the company bringing OpenStack Trove Database as a Service (DBaaS) to the enterprise, has announced that Red Hat and others have invested in the company as a part of Tesora's latest funding round. The funding agreement expands on the ongoing collaboration between Tesora and Red Hat, which dates back to Febr...
Aug. 28, 2015 09:00 PM EDT Reads: 310