As I said in an earlier post about ERP Prediction for 2012, this year cloud-based ERP will continue to gain ground at the expense of traditional ERP. Why? Because enterprises will continue to adopt SaaS-based applications to replace legacy, high-maintenance and often marginally effective systems in use today.
What managers do not know about cloud is that behind the well-known benefits - cost savings and operations improvements -, there are also some benefits that can potentially change the game for many companies that are willing to be very proactive in managing potential downside. Those are the things I wanna talk about.
Easier change management of infrastructure including maintenance and upgrades
The use of cloud solutions allows companies to improve the agility to deploy solutions and choice between vendors, especially when cloud interoperability will become a reality. Or, at least, more than it is today. Cloud computing also offers an online ramp to new non-relational databases, new languages, and frameworks that are designed to encourage scalability and take advantage of new innovations.
Cloud computing holds the potential to dramatically change the businesses that adopt it
There are some opportunity windows not to be missed. For example, cloud computing lets companies to create a new generation of products and services, significantly less expensive or more profitable than the competition. You will no longer need to purchase prohibitive amounts of computing power or radically new business models in order to improve your data storage or processing power, because cloud computing makes these opportunities unusually accessible.
More tolerance for innovation and experimentation from businesses.
With fewer technical and economic barriers to creating new ways to improve the business, cloud computing will enable prototyping and market validation of new approaches much faster and less expensively than before.
In the short term, for many organizations the apparent potential of the individual changes above will often not be sufficient to them to make the transition to cloud computing. Longer term, cloud computing is increasingly appearing to be a transformative change in the business landscape. It`s up to you if you want to be one step ahead of your competitors, or prefer to stay in the squad. Because adopting cloud solutions will give you an important advantage to compete in the modern business environment.
Sources: Forrester Research, Gartner, ZD Net Consulting