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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
SPECIAL REPORT SERIES
ERP IN 2014 AND BEYOND
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
SPECIAL REPORT SERIES
ERP IN 2014 AND BEYOND
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
! Find additional information here:
www.columbusglobal.com
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
SPECIAL REPORT SERIES
ERP IN 2014 AND BEYOND
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
! Find additional information here:
www.columbusglobal.com
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
SPECIAL REPORT SERIES
ERP IN 2014 AND BEYOND
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
! Find additional information here:
www.columbusglobal.com
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
SPECIAL REPORT SERIES
ERP IN 2014 AND BEYOND
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
! Find additional information here:
www.columbusglobal.com
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
SPECIAL REPORT SERIES
ERP IN 2014 AND BEYOND
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
! Find additional information here:
www.columbusglobal.com
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
SPECIAL REPORT SERIES
ERP IN 2014 AND BEYOND
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
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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
SPECIAL REPORT SERIES
ERP IN 2014 AND BEYOND
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
! Find additional information here:
www.columbusglobal.com
18
SPECIAL REPORT SERIES
ERP IN 2014 AND BEYOND
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
! Find additional information here:
www.columbusglobal.com
20
SPECIAL REPORT SERIES
ERP IN 2014 AND BEYOND
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
! Find additional information here:
www.columbusglobal.com
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
SPECIAL REPORT SERIES
ERP IN 2014 AND BEYOND
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