Adoption of Cloud ERP Systems Continues to Grow in 2014

Late last year, Gartner conducted a survey of CIOs and business leaders regarding their plans to move core business systems to the cloud.  While only two percent of respondents said they had enterprise resource planning (ERP) systems running in the cloud, almost half indicated they planned to make the move within five years. These numbers indicate that cloud ERP is indeed making the transition into the mainstream.

Cloud ERP with Microsoft Dynamics SLCloud ERP software hasn’t really caught on in a big way yet, but Gartner insists it will. Here are a few of the trends that seem to be driving more and more organizations towards cloud-based ERP.

  1. Because an ERP system is likely to be the biggest IT investment a company will make in its lifetime, implementations are not for the faint of heart.  On-premise ERP solutions can have a company’s IT department tied up in knots for years to come.  A big part of the cloud’s appeal is that organizations won’t have to put as much time and money into the project and can reap the benefits sooner.
  2. While larger, more mature companies (like manufacturers who typically deploy ERP tools specific to their industry vertical) aren’t likely to make the transition to the cloud, mid-sized organizations with more general or administrative ERP requirements centered upon financials and HR are better candidates for cloud ERP.  Companies that are more complex may have difficulty adjusting to cloud solutions, simply because they generally want more control over their applications. Small or medium sized companies that want the flexibility of on-premise software but want someone else to host it and maintain it for them can enjoy the best of both worlds with a cloud ERP solution.
  3. Because some companies find it difficult to wean themselves off aging applications that may have been written in older code or be running on ancient hardware, cloud ERP lends itself naturally to two-stage deployments in which an organization may retain certain functions on-premise but add new features to the cloud. For example, an old accounting system running on a mainframe (which might be difficult to port to a new system) could be retained on premises, while additional consolidation and reporting tools are deployed in the cloud to take advantage of web-based functionality.

For a free needs assessment and phone consultation, contact us at Accountnet.  We’ve help hundreds of customers find the right solution for their business ERP needs, regardless of whether they want to keep it in house or move to the cloud.