By Kaushik Mitra, Senior Director, Cloud ERP, Oracle India
Recently, we’ve had multiple discussions regarding on-premises software and Cloud applications with customers of all sizes and their consulting partners in a variety of industries over the last few years. These discussions have evolved from the inquisitive, “Why does my corporation want to use Cloud applications?” and, more basically, “What is the Cloud?” to process-focused inquiries about, “How can we adopt Cloud applications?” and “When should we make the move?”
These questions have recently taken on a more serious tone, which is understandable given the variety of external problems affecting the economic sector, ranging from the pandemic to inflation to the “Great Resignation.” As these demands mount, a sense of FOMO (fear of missing out) pervades Cloud discussions, particularly when a corporation is still employing software from the previous century.
When compared to on-premises software, the commercial benefits of Cloud apps affect every aspect of an organization. These advantages help organizations:
Enjoy measurable economic benefits: When assessed through the lens of economic analysis tools, SaaS apps outperform on-premises systems from a low TCO to a high ROI. Independent studies not only back this up, but also show how ROI benefits have more than doubled in the last ten years.
Improve capital flexibility: Integrating CCloud applications generally permits a better allocation of scarce capital resources in a business. Since Cloud adoption banks on OpEx rather than CapEx accounting, an organization has more capital resources for other projects. Furthermore, if Cloud deployment project expenditures are subsidized, those upfront costs can be transformed into multi-year OpEx monthly costs, similar to an application subscription.
Eliminate technical debt: Cloud organizations don’t have to worry about depreciating hardware assets or the costs of maintaining, updating, and replacing hardware and components for enterprise systems. When bright new hardware is first deployed for on-premises software, it loses value quickly, just like new vehicles do when they leave the dealership lot for the first time—especially when the pace of technology innovation is rapid.
Stay current: Cloud systems are updated often, from business apps to the underlying system infrastructure—including databases, middleware, and servers—so they’re always up to date with new features, functionality, updates, and bug fixes. Companies that use Cloud ERP have greater chances to embrace corporate innovation while also reducing security and uptime concerns.
Satisfy people: Cloud applications provide user experiences that are driven by constantly evolving interface designs that function on ever-changing platforms for everyone from employees and contractors to suppliers and customers. By increasing workforce recruitment and retention, Cloud apps can help companies battle the “Great Resignation.” Employees today bring Cloud-based experiences, expectations, and education to work. They want technologies that they can utilize on their smartphones and tablets.
Leverage “what’s next”: From Artificial Intelligence to Blockchain, and digital assistants to new technologies being invented in some anonymous garage, Cloud applications evolve rapidly to pounce on the next big thing. These technologies can be integrated into current applications, or they can be used to create whole new ones. The Cloud is built to supply new capabilities as they emerge and become more essential.
Address workplace flexibility and lifestyles: The typical workplace of a daily, 9-to-5 physical destination is evolving to a broad mix of home, coffee shop, and company locations—and that evolution has changed how ERP systems must work. Work is now accomplished by employees living in vans, camping on beaches, or couch surfing across international borders, and even the meaning of “home” has evolved. Cloud ERP is built to work securely anywhere and at any time when employees are present, maximizing productivity regardless of the work environment.
Enterprises around the world are grappling with cost issues related to aging on-premises ERP systems; HR departments are grappling with talent recruitment, retention, and, increasingly, retirements; and increased business complexity and competition necessitate more responsive systems and next-generation technologies. Cloud ERP is currently at the forefront of most firms’ discussions about modernizing finance and operations, especially as FOMO becomes more prevalent in debates about what’s next in this decade.
