We thought we would do a roundup of a few of the top ERP news stories over the past few weeks that caught our eye. Here is our ERP news roundup.
Cloud or nothing
Firstly, Forbes reported that many people find the headache of upgrading or implementing newer versions of their ERP systems (and the associated customizations that go with it) so painful that they decide to remain with their existing software rather than change.
However despite this reticence to change, Gartner reports that alternative procurement models to on-premise licence purchases now account for more than half of new software deployments. Maybe this suggests that when companies are electing for change on their ERP systems, they are moving to cloud or SAAS platforms.
Read the full article here.
Oracle’s Cloud Solutions for Manufacturers
Oracle has announced that it has released the industry’s first new software as a service product for the manufacturing industry in years with the introduction of its Manufacturing Cloud solution.
Oracle has said its new solution will enable the design of manufacturing processes and standards, management of work orders and the monitoring of shop-floor status – all delivered as a service rather than an on-premise licence. Manufacturing and warehouse management solutions have traditionally involved large scale purchases of expensive onsite software licences that require chunky hardware to maintain and run the applications. Oracle’s plan to deliver more of these enterprise applications within the cloud mean that companies can start to diversify how they pay for and consume their applications depending on what makes the most sense for their business.
Despite the new announcement, analysts highlighted the fact that changing applications in this sector is usually triggered by a change in overall manufacturing equipment, which then requires a software upgrade. This suggests the market is led more by the underlying manufacturing hardware systems rather than by the vendors bringing new and improved functionality to market.
Read more here.
Microsoft reorganising its ERP division
Microsoft has recently made changes to its Cloud and Enterprise business unit, bringing enterprise software teams closer to the cloud division. It has moved around teams in order to bring its Windows Server, SQL Server, Dynamics CRM and ERP teams into the vendor’s cloud organisation, to hopefully encourage more cross-divisional sales of enterprise applications into the Microsoft cloud.
Microsoft is betting on its commercial cloud revenues soaring, which includes Azure and Office365, so is trying to better integrate the range of enterprise applications that businesses can purchase through its cloud solution.
Are companies ready to put all of their enterprise app eggs into the Microsoft cloud basket?
Read the article in full here.
ERP: Departmental or just IT?
A recent study has found that despite ERP affecting many different departments and often sitting within the control of the manufacturing and production teams, 80 percent of business leaders deferred to their CIO or IT leaders for advice and strategy about moving ERP functions to the cloud.
This is perhaps the opposite of what can be seen in other departments where cloud often enables departments to circumvent IT in order to deploy a new application or service.
In reality, changing such a business-critical application such as ERP should involve all stakeholders, especially if the ERP system is highly integrated into other periphery tools and data vaults across the organisation.
The research also highlighted that 60% of companies are concerned about their dependence on an external vendor when choosing a cloud solution, yet 53% recognise that the scalability offered by cloud solutions is one of the key benefits for ERP deployments.
Read the full press release here.
Highly sensitive: Highly cloudable?
Verizon have published their State of the Market: Enterprise Cloud 2016 report which suggests that companies are now becoming more open to transitioning ‘highly sensitive’ workloads to the private cloud (which Verizon terms as a private cloud within a hosted datacentre, not on premise).
The report goes against Gartner’s wider prediction that hybrid cloud was still some way off being a mainstream method of IT resource consumption for enterprises.
The full article in Computer Weekly is available here.