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Cloud
Holy grail or risky business?
Paula Yarwood looks at how cloud ERP has evolved
Modern ERP is in high demand. As manufacturers grapple with rising complexity, regulatory pressures and volatility across both costs and demand, they’ re turning to digital to help. Testament to this demand is that ERP spending has increased by eight percent since 2022 and is set to hit $ 147.7 billion by the end of this year.
Striving for agility and intelligence
While they contain the functionality necessary to support the financials and production demands of manufacturing, outdated, heavily modified legacy ERP systems are no longer fit for purpose. They can impede progression, as well as harboring increasing levels of risk the longer they’ re in situ.
Not only are they manually intensive, which increases the potential for errors and inaccuracies, they also take up resources that could otherwise be spent on value-add activities. They simply can’ t pivot and flex to adapt to the need of modern environments.
As such manufacturers are looking to upgrade or migrate to modern cloud-based ERP capabilities in their quest to drive greater agility, intelligence and scale. In fact, Gartner forecasts that spending on public cloud will hit $ 723 billion this year.
But is cloud always the answer?
A yes for cloud
The short answer is yes. Running ERP on premise typically falls short of delivering on the security, scale and performance benefits synonymous with cloud. The question our prospects and customers frequently ask us now, is which cloud is right for their need, risk, ambitions and mindset.
Multi-tenant cloud
Many manufacturers are opting for a cloudnative, or multi-tenant cloud model. This means that a single instance of the software runs on a server that serves multiple cloud customers( tenants). It typically means configuration is limited, making way for a standardized way of working. This in turn
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