Nobody thinks twice at the thought of an organisation using a cloud provider like salesforce.com for their CRM system meanwhile the revolution for hosting HR systems (HCM) in the cloud is well underway with the likes of Oracle and Workday leading the way. However, there is still a lot of resistance to ERP cloud systems. But why? I believe the resistance is mostly due to misconceptions, the top 5 I’ve listed below in bitesize fashion:
1) Standard systems don’t suit non standard businesses: The conception that all cloud ERP systems are vanilla systems is wrong. A proficient cloud ERP system will allow for customisation to meet your businesses processes. Of course it’s not as flexible as an on-premise solution, but, the advantages of cloud ERP offers often outweighs the lack of flexibility.
2) Lack of functionality: My favourite misconception! There are of course some cloud ERP systems that lack functionality. For instance vendors trying to diversify from HCM or CRM may lack functionality as it’s not their core area of expertise, but any true ERP vendor will have heritage with ERP software which they should have taken into their cloud ERP product.
3) Security: Whilst this is a complex subject (and something I am currently working on an article for) a proficient cloud ERP system will offer vastly superior security to what your average on-premise set up will. The concern in my opinion comes from the feeling that the security is no longer in control of the I.T. department. This is an emotional and not logical concern, I am sure a hundred years ago people had the same concern with putting their money in banks.
4) Difficult to integrate: A proficient cloud ERP system will be designed with integration in mind. By moving your system to an accessible cloud and away from a complex on premise system it will actually increase the ease of integration. Saving time and money.
5) No internet = no business: This is perhaps less of a misconception and more of an unnecessary concern. Internet is vastly more reliable than it once was and most larger organisations have a second internet line in case of an issue. In a worst case scenario mobile internet can be obtained on as little as £4.99pm.