APAC CIOOutlook

Advertise

with us

  • Technologies
      • Artificial Intelligence
      • Big Data
      • Blockchain
      • Cloud
      • Digital Transformation
      • Internet of Things
      • Low Code No Code
      • MarTech
      • Mobile Application
      • Security
      • Software Testing
      • Wireless
  • Industries
      • E-Commerce
      • Education
      • Logistics
      • Retail
      • Supply Chain
      • Travel and Hospitality
  • Platforms
      • Microsoft
      • Salesforce
      • SAP
  • Solutions
      • Business Intelligence
      • Cognitive
      • Contact Center
      • CRM
      • Cyber Security
      • Data Center
      • Gamification
      • Procurement
      • Smart City
      • Workflow
  • Home
  • CXO Insights
  • CIO Views
  • Vendors
  • News
  • Conferences
  • Whitepapers
  • Newsletter
  • Awards
Apac
  • Artificial Intelligence

    Big Data

    Blockchain

    Cloud

    Digital Transformation

    Internet of Things

    Low Code No Code

    MarTech

    Mobile Application

    Security

    Software Testing

    Wireless

  • E-Commerce

    Education

    Logistics

    Retail

    Supply Chain

    Travel and Hospitality

  • Microsoft

    Salesforce

    SAP

  • Business Intelligence

    Cognitive

    Contact Center

    CRM

    Cyber Security

    Data Center

    Gamification

    Procurement

    Smart City

    Workflow

Menu
    • ERP
    • Cyber Security
    • Hotel Management
    • Workflow
    • E-Commerce
    • Business Intelligence
    • MORE
    #

    Apac CIOOutlook Weekly Brief

    ×

    Be first to read the latest tech news, Industry Leader's Insights, and CIO interviews of medium and large enterprises exclusively from Apac CIOOutlook

    Subscribe

    loading

    THANK YOU FOR SUBSCRIBING

    • Home
    Editor's Pick (1 - 4 of 8)
    left
    ERP in Healthcare - Impact of Cloud & IoT?

    Niranjan K Ramakrishnan, CIO, Sir Ganga Ram Hospital

    The Keys to Executing a Business Transformation

    Scott Spradley, CIO, Hewlett Packard Enterprise

    SYSPRO: Simplifying Success through ERP

    Regional CEO - Asia Pacific

    NetSuite: Elevating Business Performances

    President & CEO

    Hilsoft: Automating Businesses with ERP World Class

    CEO

    Strategic Competitive Advantage with ICT and ERP

    Simon Hartfiel, CIO, Carinity

    Julie Cullivan, and CIO, Fire Eye

    Step Away from the Spreadsheet The argument for IT planning solutions that bring you out of the grid

    Paul Bryan, VP - Products, Apptio

    right

    ERP Heads toward Cloud

    Santosh Kotnis, EVP & CEO, Futurism Technologies

    Tweet
    content-image

    Santosh Kotnis, EVP & CEO, Futurism Technologies

    When it comes to emerging technologies, one phrase that has drawn more controversy than others have is cloud computing. Two words, which have driven countless debates, caused numerous arguments in IT departments, and more often than we would care to admit, have left many in the industry deeply confused.

    Similar technology transformation is happening in ERP space as well. The cloud is making on-premises ERP implementations an endangered species. This is a big change from just a few years ago, when cloud ERP was met with skepticism, particularly among large companies with big investments in on-premises systems. Attitudes have changed as IT and business management have come to understand the cloud's capabilities and value proposition.

    Cloud-based ERP platforms rely on hosted internet services, rather than an on-premises networked server infrastructure to deploy core enterprise systems such as financial applications, human resources (HR) tools, and supply chain management (SCM) software. The original advantages of cloud ERP were faster deployments, immediate enterprise-wide availability of the latest versions of applications, less need for on-site support, and simpler pricing. Later systems featured greater ease of use, mobile-enablement of applications and easier integration with outside data sources. Today, the most up-to-date cloud-based ERP systems have Internet of things (IoT) and machine learning capabilities.

    With cloud-based ERP offering so many pluses, why even consider an on-premises option? Even market leaders SAP and Oracle admit that few companies are deploying new on-premises ERP systems. Research firm Gartner predicts that the cloud will become the default option for software deployment by 2020. The writing is on the wall: Cloud will rule and on-premises ERP is heading for legacy status.

    Change in Attitude towards Cloud

    Two barriers to cloud ERP adoption had been security concerns and resistance to change among IT leaders. The latter is understandable, considering the investment made in the software, training, and support infrastructure of on-site systems, not to mention the risk associated with replacing any core business system.

    Cloud-based ERP platforms rely on hosted internet services, rather than an on-premises networked server infrastructure, to deploy core enterprise systems

    The security concerns were tied to the belief that remotely hosted systems were inherently at greater risk than on-site deployments — especially if they were housed in multi-tenant public cloud setups where a single instance of application code serves many customers.

    Those areas of cloud's perceived weakness are now seen as strengths. For example, with on-site IT infrastructures, security degrades over time as upgrades are skipped and new software with additional risks is integrated. With cloud-based ERP, the latest security updates are always deployed and it's easier to maintain the integration points to keep up with security for apps outside the core system.

    While IT teams might get attached to systems they know, they hate the constant update/upgrade cycles, the database maintenance, the training requirements, and the customization needed to keep them running. For example, Oracle customer HSBC opted to move to the cloud when it was looking at an 18-20 month upgrade project for its on-premises ERP deployment. In contrast to a year-and-a-half upgrade, the cloud migration took about six months.

    Vendor Strategies and Customer Options

    Cloud ERP vendors generally fall into one of these two categories: Cloud natives, such as Workday and NetSuite, whose systems were developed for the cloud from the start, and traditional ERP vendors like Oracle, SAP, Infor, and Microsoft, which have developed cloud offerings and whose products offer continuity and familiarity to their existing on-premises customers and appeal to new users who want to deploy in the cloud. SAP has hedged its bets by acquiring cloud ERP natives SuccessFactors and Ariba, and Oracle has announced plans to buy NetSuite for $9.3 billion.

    A key difference between cloud natives and traditional vendors is in the infrastructure used to support and deliver the services. Cloud natives rely on third-party cloud infrastructure providers such as Amazon Web Services (AWS) or Microsoft. Traditional vendors mostly develop their own cloud infrastructures; the exception is Infor, which partnered with AWS.

    Enabling the Business

    The deciding factor for companies evaluating cloud-based ERP systems boils down to the value added and practical considerations like cost, ease of implementation, level of support, and issues related to legacy systems.

    Summary

    More companies are likely to take cloud-first or even cloud-only approaches to ERP as the cloud become the dominant means of deploying enterprise software. In fact, businesses may find themselves without a choice in the near future. ERP vendors are pursuing their own versions of cloud-first strategies and are pouring resources into developing their cloud-based ERP offerings. Gartner predicts that 30 percent of the 100 largest software vendors will shift to cloud-only models by 2019. Companies that don't embrace the cloud may find themselves with limited options and at a competitive disadvantage.

    Based in Pune, India, Futurism Technologies is an Information Technologies and Services company. Founded in 2001, the company provides end-to-end cost-effective and quality ITeS solutions and also specializes in business consulting, application development and cloud computing etc.

    tag

    Cloud Computing

    AWS

    Infor

    Financial

    HR

    IoT

    Machine Learning

    Supply Chain Management

    Weekly Brief

    loading
    Top 10 ERP Solution Companies - 2018
    Top 10 ERP Consulting/Services Companies - 2018
    ON THE DECK

    ERP 2018

    I agree We use cookies on this website to enhance your user experience. By clicking any link on this page you are giving your consent for us to set cookies. More info

    Read Also

    Where Technology Meets Tradition in Sports

    Where Technology Meets Tradition in Sports

    Rey Sumaru, General Manager IT & Innovation, Melbourne Cricket Club (MCC)
    Why Software Delivery Centres Fail In Insurance

    Why Software Delivery Centres Fail In Insurance

    David Bejar, VP Head of IT Software Engineering, Allianz Indonesia
    Building Smarter Content Systems for Scalable Growth

    Building Smarter Content Systems for Scalable Growth

    Judy Tay, Head of Content, First Page Digital
    The Thoughtful Innovation behind Every Loaf

    The Thoughtful Innovation behind Every Loaf

    Keng Ng, Chief Technology Officer, Bakers Delight
    Lessons for Ambitious Professionals in a Digital World

    Lessons for Ambitious Professionals in a Digital World

    Andreas Kurz, Global Head of Digital Transformation, Alfagomma Group
    Designing For Regeneration, Not Just Resilience

    Designing For Regeneration, Not Just Resilience

    Gregory Kovacs, Design Director, Benoy
    Listening Beyond Hearing

    Listening Beyond Hearing

    Salvatore Incardona, Head of IT, Amplifon Australia
    Modernizing Lending Through Innovative, Secure and Scalable Technology

    Modernizing Lending Through Innovative, Secure and Scalable Technology

    Steven Meek, Chief Information Officer, Pepper Money
    Loading...
    Copyright © 2025 APAC CIOOutlook. All rights reserved. Registration on or use of this site constitutes acceptance of our Terms of Use and Privacy and Anti Spam Policy 

    Home |  CXO Insights |   Whitepapers |   Subscribe |   Conferences |   Sitemaps |   About us |   Advertise with us |   Editorial Policy |   Feedback Policy |  

    follow on linkedinfollow on twitter follow on rss
    This content is copyright protected

    However, if you would like to share the information in this article, you may use the link below:

    https://erp.apacciooutlook.com/cxoinsights/erp-heads-toward-cloud--nwid-3834.html