Cloud, on-premise, or hybrid? It is not an easy decision

Young business man using laptop and look to blue sky and cloud with cityscape in the background, business and cloud computing concept

Business is changing. The successful enterprise needs far more insights to compete these days. Cloud-based ERP platforms rely on hosted internet services, rather than an on-premises networked server infrastructure, to deploy core enterprise systems. A few years ago, cloud ERP was met with skepticism, but currently, attitudes may have changed as IT and business management have come to understand the cloud’s capabilities and value proposition.

Cloud applications can be relatively easy, low-cost solutions. The advantages of cloud ERP include faster deployments, immediate enterprise-wide availability of the latest versions of applications, and less need for on-site support.

But cloud ERP solutions do introduce new complexities when they need to be integrated with on-premise ERP systems and databases, or with each other.

Later, the advantages may include more ease of use, mobile-enablement of applications and easier integration with outside data sources. Today, many cloud-based ERP systems have internet of things (IoT) and machine learning capabilities. It seems that today’s cloud is not about storage at all, but rather a way of operating with connectivity and transparency.

Research firm Gartner predicts that the cloud will become the default option for software deployment by 2020.

Currently, most organizations have some form of a hybrid (cloud and on-premise) ERP system. Making the right decisions about what will be in the cloud and what stays in-house is the first challenge. The second one is ensuring that cloud and on-premise systems operate nicely together. To meet those challenges, organizations are now transitioning from an ad hoc approach to building a hybrid ERP system to a more strategic planning process.

We help our clients to build that strategic planning that includes best practices for inspecting, connecting, deploying, and testing solutions.