seven reasons to consider erp in the cloud...seven reasons to consider erp in the cloud special...

SEVEN REASONS TO CONSIDER ERP IN THE CLOUD

SPECIAL REPORT SERIES

ERP IN 2014 AND BEYOND

INTRODUCTION 3

TRY BEFORE YOU BUY 4

TAKE ADVANTAGE OF THE MOST ADVANCED TECHNOLOGY 6

GENERATE MEASURABLE COST SAVINGS 8

RUN A MORE EFFECTIVE AND SCALABLE IT OPERATION 10

STRENGTHEN THE INTEGRITY AND SECURITY OF YOUR ERP SOLUTION 12

ENABLE GLOBAL USER PRODUCTIVITY ON ANY DEVICE 14

ACCELERATE YOUR IMPLEMENTATION 16

YOUR BEST-PRACTICE CHECK LIST 18

CONCLUSION 20

ABOUT COLUMBUS 22Columbus RapidValue 22Columbus Care 23

CONTENTS

Business decision makers who are

choosing an ERP system also have

to decide whether to run their new

business management solution

on-premise or in the cloud Many

cloud-based ERP offerings are available today, including

public, private, hybrid, and hosted solutions What these

deployment models have in common is that the ERP

solution resides in a technology provider’s data center,

away from the customer’s business location Technology

users access the system through the internet Most

cloud service providers manage solution upgrades and

data protection for their clients

In recent years, the adoption of cloud technology has

accelerated We expect this trend to continue in 2014 and

beyond More companies than ever decide to base their

new ERP deployments in the cloud or to migrate their

existing solutions to it The market for cloud-based ERP

deployments and other cloud technology services will

continue to grow How can your company take advantage

of it? What are the real benefits of implementing ERP in

the cloud?

At Columbus, we help companies in many industries

deploy their ERP systems We also assist them in making

the business case for the best implementation model

Read about some reasons why some companies deploy

business-critical technology in the cloud We hope that

our experience can help you arrive at a deployment

strategy that is efficient, reliable, and economical, and

that can meet your company’s changing needs

Introduction



3

Try Before You Buy

When businesses make large

investments, they run the risk

of making a wrong decision The

ability to try a new technology

before committing to it greatly

reduces this risk When you consider a cloud-based

solution, you can safely evaluate it before

you make an acquisition or sign a long-term

service contract For a limited time,

maybe even for a specifi c business group

or organization, you can have your ERP

solution set up in the cloud so you can test

it thoroughly The technology partner and

hosting service provider you engage with will be

able to work with you to establish the most meaningful

and practical parameters for a pilot project

In this way, you can see how the capabilities of the

solution meet your business needs You also can verify

what the accessibility of the solution is from a variety of

locations and mobile devices You experience fi rsthand

how well the solution responds in a realistic working

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4

Gain theapproval and

buy-in ofconcerned

stakeholders

Thoroughly evaluate and

test-drive an ERP solution before you

commit to it

KEYBENEFITS

environment Your ERP users participating in the test

can provide feedback from their perspective regarding

solution features and the practicality of the cloud

implementation When you make your final decision, you

can do so with the assurance and comfort resulting from

hands-on exposure and comprehensive experimentation

with the cloud-based ERP solution

Some other technologies, such as customer relationship

management (CRM) systems, are ahead of ERP in terms

of cloud deployment Today, most companies still run

their ERP solutions on-premise As ERP in 2014 and

following years moves into the cloud more and more,

the ability to experience the solutions before purchasing

them will help rule out doubts and uncertainties for

those decision-makers for whom the cloud is a new and

unknown territory



5

Cloud technology enables you

to run your new ERP solution

in an enterprise-class,

fit-for-purpose environment

Good cloud providers invest in

the latest, high-specification technology to

enable your business application to run at the

greatest speed, with fast, reliable access from

around the globe The cost of replicating

this environment in your own operation

would include significant upfront

capital and resource commitments,

plus the costs and effort of staying

up-to-date with evolving technology,

ongoing maintenance of upgrades, and

support for changing usage scenarios

Many organizations that have been running

an on-premise ERP solution may have saved cost

through inertia Having stopped considering ERP as a

strategic technology that plays a role in moving the

business forward, they no longer invest in their solution

Take Advantage of the Most Advanced Technology

and the technology that surrounds

it Often, they are behind in terms

of upgrades to newer versions

or capability enhancements

This approach may have some

relatively minor, short-term cost

benefits, but it may have damaged

the competitiveness of the business

The costs of any future upgrades will be

significantly higher, and those updates

will also require more adjustments in

the software products that integrate

and interact with the ERP system

When you move ERP into the cloud,

you do not need to ever worry about

these issues Through your cloud service

provider, you can stay current with the latest

technologies, including software and hardware

upgrades You can take advantage of all the business

benefits of ERP at a controlled cost, usually a fixed

monthly fee



6

Keep your ERP system current

without the costs and headaches of

managing updates

Take advantage of best available

technology to elevate the strategic

value of ERP

KEY BENEFITS



7

When you make the business case

for ERP in the cloud, you can

score a strong point with

this key benefit, especially

when you need to convince

the CFO: On average, the costs of cloud computing

are far less than those of on-premise solutions In

traditional, onsite deployments, your company

incurs the significant upfront costs of

software licenses and new or updated

servers and network equipment When

you deploy in the cloud, you do not face

those expenses Cloud ERP solutions are

usually billed per month and per user You

can fully finance your new solution through

operational costs rather than by means of

upfront capital expenditures This cost model

also helps to keep your IT budget predictable

and controlled over the timeframe of the

cloud-service agreement

Generate Measurable Cost Savings



8

Reduce the costs and resource

impact of IT support, maintenance, and ERP management

Eliminate upfront software

licensing and hardware

investments

Pay for the ERP capabilities you need, when you

need them

KEY BENEFITS

Let’s summarize the one-time and ongoing costs savings

associated with cloud computing:

| Obviously, you don’t pay software license fees

| You also do not need to purchase new servers or network infrastructure

| The physical footprint of your operation is insignificant—there is no need for rack or data center space

| Cooling and power consumption costs are less because you do not need IT hardware such as server racks

| The high flexibility of cloud services means you only pay for actual users and applications When business requirements change, you can adjust the number of users or the ERP modules and applications they work with

| You may be able to generate additional savings in operational costs because cloud-based ERP requires less support and maintenance from IT, so you can reassign IT staff to more business-critical tasks



9

Because your hosting partner assumes

most of the day-to-day tasks of running

your solution in the cloud, you can offload

many tasks from your IT department

The IT team no longer needs to perform a

multitude of jobs that range from changing backup tapes

to implementing patches to rolling out software

updates Your cloud partner will also monitor

several performance indicators to ensure that

your ERP system runs at an optimal level Taking

these time-consuming tasks away from your

IT department enables it to focus on the more

strategic aspects of technology operation where

it can drive real business benefits

Run a More Effective and Scalable IT Operation



10

Access ERP and technology

expertise as the business

requires it

Outsource busywork and

use your IT group for more valuable

tasks

KEY BENEFITS

At the same time, you can extend your company’s IT

resources by accessing your cloud service provider’s

capabilities for certain tasks and functions Your

provider’s staff should include highly qualified IT

experts who can work effectively with a number of the

company’s customers These professionals would have

deep knowledge of applications and environments that

it would not be cost- or resource-effective for you to

support and staff In engaging with your cloud service

provider, you can pay for the specific skills that you need,

when you want them At the same time that you gain

access to advanced technical expertise and skills, you

can ease the task load and reduce the resource impact

on your internal IT staff



11

Many business leaders

experience a level of

discomfort with moving

ERP solutions to the

cloud They fear that one

of their most valuable assets, business data,

may become compromised and accessible

to unauthorized persons through the

web They are also often concerned

about connectivity, wondering

about the consequences if the

company cannot access the

solution because of internet

connectivity problems

We have good news The security,

availability, and integrity of cloud-based

ERP and other applications has made

huge advances in recent times, and we

can expect even more improvements

in this area as technology providers

refine their offerings in 2014 Reputable

cloud providers will generally have far

greater security expertise than you can

afford to maintain in-house They understand

companies’ security concerns and have the

insight and resources to address them

Business continuity, data protection, and

disaster recovery are at the core of cloud

Strengthen the Integrity and Security of Your ERP Solution



12

Benefit from unprecedentedly high

integrity and availability of your data, ERP system,

and applications

Draw on your cloud provider’s expertise and

infrastructure to enhance your

business viability

KEY BENEFITS

providers’ business model They can work with you to

make recommendations and strategize the best way to

protect your data against any security threat or viability

challenge They will be able to reduce your risk exposure

from software-related liabilities such as viruses,

phishing, or unauthorized access by using such tools

as automated security packet sniffers or sophisticated

firewalls In addition, they also can safeguard the

physical environment of your data and applications by

using biometric control systems, CCTV cameras, and

many other resources and technologies

Our experience and industry statistics show that the

availability of ERP systems in the cloud is strongly

increased compared to that of on-premise solutions

Stringent industry standards continue to improve the

reliability and availability of cloud-based technology A

credible, capable cloud service provider will be able to

guarantee you an extremely high percentage of solution

uptime, so you can do business without interruption



13

Taking your ERP solution to the cloud can

help you transcend some of the limitations

and challenges that can accompany

on-premise implementations When you

run operations in several sites and want

to deploy an ERP system for the entire company, the

complexity of on-premise implementation increases

significantly You need to ensure that employees

at all sites can easily access the solution and work

effectively with it, so the IT department or hired

consultants need to create and maintain a reliable,

fast communications infrastructure Your company

thereby incurs increased costs and resource overhead

As the business grows and changes, you will also need

to plan to scale the communication technology the ERP

system requires

Enable Global User Productivity



14

Enable ERP users to be productive at any location,

using any connected device

Benefit from superior

communications technologies without

acquiring them at great cost

Provide an excellent user

experience with consistent ERP performance

KEY BENEFITS

When you deploy your ERP solution in the cloud, these

concerns fall aside All of your ERP users can access the

system through the internet, from any location in the

world That ability, in turn, can greatly help user adoption

of the solution Your cloud service provider already owns

all the infrastructural resources needed to make sure the

ERP system runs at optimal levels of performance and

reliability

There are other advantages when you take ERP to the

cloud, depending on the capabilities of your specific

ERP solution Your employees can use their preferred,

internet-connected hardware when they access the

ERP system—desktop computers, laptops, tablets, and

other mobile devices What’s more, cloud technology

makes it very easy to connect the ERP system with the

collaboration and social-media tools your company uses,

resulting in potential increases in employee productivity



15

Accelerate Your Implementation

Any ERP implementation, no matter

whether it is on-premise or in the

cloud, is going to take time and needs

very careful planning and project

management Where the cloud can

help is with the IT infrastructure Because there are no

additional hardware requirements, you can save time that

you would otherwise spend by procuring and installing

servers and network equipment, and by managing any

associated issues These implementation benefi ts

may well compound if your roll-out involves multiple

regions, subsidiaries, and locations Once your

system is up and running, you will again benefi t

from largely care-free, fast upgrades and the ability

to easily add more users as the business grows

You might also want to be aware of the diff erent

cloud deployment models most commonly practiced



16

Easily connect other business

groups, subsidiaries, and locations to the

ERP system

Makeyour ERP

implementationrapid and

predictable

KEYBENEFITS

Depending on your business model and requirements,

each of them has its advantages in making your

implementation fast and painless Your technology

partner can help you make a wise choice among these

options:

Software-as-a-Service (SaaS): Multiple

organizations share hardware resources Customers

typically enter into a rental or subscription agreement,

and may rely on shared or separate instances of their

software applications Most of the businesses using this

cloud deployment model are smaller companies

Hosted ERP: Customers run their cloud ERP

solutions on dedicated server and network hardware and

typically use separate instances of their applications

Many larger businesses prefer this model

Hybrid ERP: Businesses maintain on-premise software

and integrate it with a number of cloud-based services

Hybrid ERP provides a level of flexibility and control that

some companies find valuable In this type of deployment,

they can easily migrate from one solution delivery model

to the other as their business needs require, without

losing data or functionality



17

□ Review your cloud service provider’s uptime service-level commitment

□ Check on applicable ratings and certifications for your service provider and data center

□ If you can, arrange for a data center tour for yourself and concerned business stakeholders

□ Include multisite and global growth considerations in your implementation planning

□ Take advantage of cloud-enabled mobile ERP capabilities

□ Work with your partner to determine the best cloud deployment model for your business

□ Learn from the cloud experience of your peers in other organizations

Your Best-Practice Check List:

□ Before committing to a purchase, perform a cloud-based ERP pilot project

□ Involve key business stakeholders and influential users in the cloud pilot

□ Take the cloud vs on-premise decision as an opportunity to lift the strategic value of ERP

□ Review your cloud provider’s service commitments for software and hardware enhancements

□ In comparing on-premise to cloud-based ERP, consider all one-time and ongoing costs and savings

□ Project costs and savings through the contract term with your cloud service provider

□ Assess the impact of cloud ERP on the productivity and resource-efficiency of your IT team

□ Verify which IT skills and expertise you can access through your cloud service provider



18



19

In 2014, many enterprises and smaller businesses

will move their ERP systems and other

business-critical applications into the cloud ERP

implementation in the cloud may not be the best

option for all companies, but it is definitely worth

your consideration If you are newly implementing an

ERP solution, we recommend that you review cloud

deployment options and evaluate whether the cloud

is a good fit, given your organization’s business model

and expectations for growth If you already run your

ERP system on-premise, it’s worth thinking about the

possible savings, efficiencies, and flexibility you might

achieve as you offload most of the ERP administration

to a trusted provider Your technology partner can help

you determine whether a cloud deployment makes good

sense for your business, help you assess any financial and

operational advantages, and plan for the implementation

that best fits your business

ConclusionYou may also find the other papers in our

“ERP in 2014 and Beyond” series helpful:

| Seven Ways To Avoid ERP Implementation Failure

| Seven Ways That Business Process Management Can Improve Your ERP Implementation

| Seven Ways To Optimize Your Existing ERP Solution

| Seven Ways To Help Data Migration During Implementation



20



21

About Columbus Columbus RapidValueColumbus is an industry-based consultancy and

award-winning technology developer focused on the

manufacturing, food processing, and retail industries We

are the preferred consultancy for ambitious companies

wanting to streamline business processes, improve

operational efficiencies, reduce costs, and improve

visibility into their businesses

Our approach to solving our clients’ issues can best

be described as proactive We challenge our clients’

traditional ways of thinking, help them see new

opportunities for improvements, and take responsibility

to drive change in their organizations We’ve delivered

these business benefits for over 25 years to many of the

leading companies worldwide

Columbus is a long-time developer of award-winning

industry software and has recently become well known

for developing Columbus RapidValue RapidValue

is a business process management tool that drives

increased client value for ERP solutions It delivers

a shorter implementation with more predictable

results by incorporating hundreds of best industry

practices accumulated through in over 6,000 Columbus

implementations This allows Columbus to focus on

streamlining the processes that make our clients unique

Companies all over the world are investing in RapidValue

and enjoy the benefits of shorter times to value, quicker

and less risky implementations, and the industry

leadership and knowledge acquired from the thousands

of Columbus deployments that preceded theirs



22

ColumbusCareColumbusCare is unique to Columbus—it is how we take

care of our clients, 24/7 worldwide With ColumbusCare,

you get a well-trained team dedicated to improve

your system’s efficiency, cost-effectiveness and risk

resistance Whether you’re looking for enterprise-level

support, upgrade options, or system enhancements,

ColumbusCare provides flexible service levels to meet

the needs of your business



23

’Columbus’ is a part of the registered trademark ‘Columbus IT’

SPECIAL REPORT SERIES:ERP IN 2014 AND BEYOND

Seven Ways To Avoid ERP

Implementation Failure

Seven ReasonsTo Consider ERP

In The Cloud

Seven Ways To Help Data

Migration During Implementation

Seven WaysTo Optimize

Your Existing ERP Solution

Seven Ways That Business Process Management Can Improve Your ERP Implementation

seven reasons to consider erp in the cloud...seven reasons to consider erp in the cloud special...

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