What Does Moving ERP to Subscription Based Mean for Businesses in 2011?

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Forrester’s State of ERP in 2011: Customers Have More Options in Spite of Market Consolidation report states, “The enterprise resource planning (ERP) market is heating up in 2011, but despite more on-demand offerings, two-thirds of companies say they will stick with the status quo for their business applications.” Although the report states ERP is heating up because of the subscription business model, they also show that many companies are staying with their on-premises solution. The report has conflicting analysis, but what does this really mean for businesses in 2011?

I think cloud computing has been hyped up to a point of no return and I worry that companies with existing solutions in place for either their CRM or ERP systems think it’s really easy to switch over to the cloud and pay by subscription. In fact, it takes just as much planning and time to make sure your online solution meets the needs of your demanding business processes. Startup companies may be at the advantage with subscription based ERP, as they don’t have as much to transfer and probably don’t have the number of users that many larger companies need to provide for.

The conclusion I draw from this report is that ERP is expanding and becoming available to more companies of all sizes and industries. Companies now have choices when they want to implement ERP, and for a business owner, that is a huge benefit. Microsoft Dynamics® GP and Microsoft Dynamics SL are available through partner hosting or Software as a Service (SaaS) giving you the choice to find what fits your needs. You can even deploy your Microsoft Dynamics GP and Microsoft Dynamics SL to fit your requirements today and yet retain the flexibility to migrate to a different model as your needs change. The power of choice may just have the leeway to heat up the ERP market, but when it comes down to it, businesses need to clearly assess their unique situations before following the latest trends.

SSi is a Microsoft Gold Certified Partner and able to assist you with your business consulting needs. Feel free to contact us for more information about the choices available to you.

SSi Consulting, Maryland Microsoft Dynamics GP Partner

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