Enterprise resource planning software has long been a critical solution for all types of industries over the years. One of the tool's shortcomings, however, is the fact that it has been restricted by on-site deployments requiring extensive customization to introduce added functionality. If too many additions are made, ERP is difficult to leverage consistently.
Traditional ERP software is between a rock and hard place regarding its flexibility, which has enabled innovative technologies such as cloud computing to swoop in and address this challenge. The cloud allows businesses to add additional resources quickly and easily without draining finances - capabilities that are most welcome in the ERP market.
A recent Enterprise Apps Today report indicated that the cloud will lead ERP into the future, influencing both the vendors offering such services and the customers relying on the solutions.
"The mistake that some people made was the belief that these large, monolithic, all-encompassing on-premise systems represented the end of the line for ERP," explained Andy Kyte, vice president and Gartner fellow, according to the news provider. "The thought was that there was no need to do anything different, because ERP could do everything. But it is pretty clear now that was not true."
SAP and Microsoft in particular stand to benefit greatly from a burgeoning cloud ERP market. Kyte said that SAP was the leading ERP vendor in 2013, generating $6.1 billion in sales. The service provider also boasts 35 million cloud business users - a figure that will expand thanks to a partnership with Microsoft that will take full advantage of the Azure platform, Enterprise Apps Today reported.
Cloud computing taking off
The popularity of cloud computing is expected to reach unprecedented levels in the near future, so it is not surprising that the service will be more integrated with applications such as ERP software. An IHS Technology report predicted that the global cloud industry was valued at more than $78 billion in 2011 and, by 2017, it will exceed $235 billion.
Jagdish Rebello, senior director and principal analyst for cloud computing and big data at IHS Technology, indicated that cloud computing is not just impacting the enterprise space, but the consumer market as well. Businesses are expected to purchase cloud services to create scalable architectures with little management complications during the forecast period.
"The robust growth will come as an increasing number of large and small enterprises move more of their applications to the cloud, while also looking at data analytics to drive new insights into consumer behavior," Rebello said.
Preparing an IT infrastructure for change due to a technology like cloud computing or adopting a new solution such as ERP software is never an easy endeavor for any company, especially those lacking the resources to do so. Not only does Pinnacle, An Advanced Imaging Solutions Company, have ERP Consultants that are fully capable of implementing an ERP solution for your business; but, we also have a full suite of technology solutions including customer development, IT infrastructure project services, and managed IT services ready to handle any of your technology-related needs.
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