The cloud has been advancing steadily in the business management software industry for some time. Those organisations that were once reluctant to move to the cloud have gradually been adopting the concept as the advantages of it are becoming more and more apparent.

New organisations are developing cloud solutions every day and while laggards scramble to bring their on-premise solutions to the cloud, those born in the cloud era are discovering faster, easier and less expensive ways to deliver ERP solutions.

Technology Adoption Curve

Figure 1: The technology innovation curve

Originally there was a fear that moving to the cloud would incur a great risk, i.e. fear of data security However, as Malcom Gladwell’s Tipping Point has proved – the Mavens and the Connectors have confirmed that there was no real justification to these fears and now many companies are benefiting from their move to the cloud. Now the complex, highly customised and bulky solutions, of the past, which come with a hefty price tag and a collection of features and functionality not required by the end-user are quickly being replaced by pay as you go solutions. The market continues to be a strategic growth area for ERP and customers have a greater flexibility to leverage a SaaS or Cloud model.

While cloud ERP is still an emerging market, it is fair to say that it is moving beyond the early adopter stage. We have crossed the chasm and are quickly headed towards the early majority market. Within the next 2 years we can expect to see a majority of ERP purchases made in the cloud.

The fact is, the fate of on-premise ERP solutions isn’t entirely bleak and there is certainly still a need, but we are witnessing a shift towards cloud based solutions. ERP will always be required by many types of organisations, but on-premise ERP may in fact not survive this shift long-term. If companies hope to survive the transition they need to be proactive about developing their cloud solutions – and that means more than throwing up a landing page and calling yourself a cloud player.

If your business is looking to implement an ERP solution, what are your top priorities?

If you are a company seeking out a new ERP system, you should carefully consider the benefits of using a cloud solution. Also, you should lay colleagues minds at rest if they have an inherent fear of the cloud.

If you’re looking for a better way to manage your business, ERP in the cloud might just be for you. To find out more download the guide cloud versus on-premise.