Hybrid Cloud ERP Solutions Calm Implementation Fears - ERP Cloud Blog
 
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Ken Jacobsen, The TM Group

Hybrid Cloud ERP Solutions Calm Implementation Fears


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Some small to mid-sized businesses are still skeptical of cloud ERP solutions. Hands-on company heads don't like the idea of storing information off-site. Smaller organizations feel a tech shift would be too cost prohibitive.

The cloud is a data solution that is here to stay and all businesses have to start adapting their ERP systems. Software providers use hybrid-cloud strategies to introduce hesitant clients to the benefits offered by modern computing tools.

Solution for small to mid-size businesses
One of the primary advantages of cloud ERP solutions is their ability to scale.

Business 2 Community indicated companies avoid implementing cloud solutions because they believe a new system would be expensive, complicated and a strain on their existing IT capabilities. A hybrid-cloud strategy can erase these fears by offering an incremental implementation plan.

Businesses can contact a software partner about moving a single function, like transaction management, to the cloud while keeping the rest of the ERP procedures on-site. Companies are then able to test the performance of the off-site data solution and see if they would like to move more processes over. It requires a minimum investment to ascertain the return of a new system.

This implementation process manages security fears. Some managers don't like the idea of putting crucial data, such as customer financial records, into off-site storage. Cloud services usually offer top-notch security but businesses are still nervous. By using the hybrid cloud, a company can dictate which information is moved to the cloud and which stays in on-premise databases. ERP Focus recommended starting the cloud transition using datasets that won't prove costly if breached, such as quality control statistics or inventory management guides.

Hybrid-cloud difference
By using the cloud to run specific processes and store certain datasets, a company gains focused insight into performance. Watching how cloud-deployed strategies improve individual aspects of a business promotes future adoption.

For example, Manufacturing Business Technology suggested production managers should move data extractions, potential extended attributes and unit of measure transformations to the cloud. Any dataset that has to be changed to accommodate government mandates needs the flexibility cloud computing can facilitate. If manufacturers use hybrid cloud implementation, they can see how easy it is to adjust single applications on cloud compared to legacy ERP solutions.

All industries can profit from the speed and convenience offered by cloud-deployed solutions. Storing off-site data saves money on office hardware. The cloud routinely provides increased processing power. Forbes argued the current marketplace demands that businesses operate with mobile data solutions. A company working in a global industry can't be tied down to a single office and needs information processing accessible from any location.

Business owners should see a return on their investment. A recently published PricewaterhouseCoopers business technology study found over a five-year period, hybrid cloud ERP systems saved companies six times the capital as traditional ERP solutions. The study concluded organizations that saw the greatest returns on their investment were the ones who used hybrid-cloud implementation as the first step in an overall system change.

Implementation process
A company exploring cloud ERP solutions options would do well to speak with an ERP partner about a hybrid-cloud approach.

Managers and employees can examine their legacy ERP system and determine which areas of the process are most in need of the advantages the cloud provides. A software partner offering hands-on service helps determine which datasets could be safely moved off site without worry.

As the hybrid cloud is implemented in a company, the results can be checked against projections. If the system is not operating effectively, implementation strategies can be redesigned. If the cloud offers all the benefits the company was expecting, more parts of the ERP software can adopt cloud-deployed solutions.

by The TM Group

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