How effective is cloud services adoption in the ERP market?
Cloud computing is now in the market for a long time.How many enterprise customers did really adopt the different cloud solutions offered by large ERP vendors?
Are they looking for a Hybrid cloud model so that the security and control on their data need not be compromised and meet SOX compliance?
Large ERP product vendors like SAP are now became a matured cloud solutions provider.SAP has come a long way from the Business By Design solution originally developed for SME market. Customers now have more options of deploying SAP cloud solutions like sales on demand and service on demand.
Cutting edge technologies like SAP HANA on cloud are also being offered.
Public cloud service vendors like Amazon have triggered and accelerated the usage of cloud services with attractive pricing models of pay on usage and low starting costs.Co-Innovation and easier collaboration with vendors are the immediate areas of value propositions to use cloud service vendors platforms.
The subscription services models will be more successful if the ERP vendors focus more on products that help run day to day operations in an integrated environment rather than stand alone products (like CRM,sales on demand).
While the stand-alone products gives flexibility on running them seperately and reduce their costs,the data integration and data consistency will create additional work.
But in the world of subscription services,will the ERP products die? Not as the large corporations and enterprises still have to depend on efficient ERP products like SAP ERP to run the business and stay competitive.
The Hybrid cloud option seems to be the way for the large corporations to get the best of the both worlds.