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Cloud ERP Systems: What Type of Cloud Holds the Future of ERP?

future of ERP


While most ERP software developers focus solely on cloud-based ERP systems, Microsoft offers both on-premise and cloud ERP software models, along with hybrid environments, which propose combinations of on-premise and cloud ERP solutions. Hybrid environments facilitate a seamless transition from traditional on-premise systems to cloud software alternatives, be them public or private. The primary benefit of switching from traditional ERP software products to cloud solutions is that employees can complete various tasks regardless of where they are. Are you hesitant about making the switch to cloud-based ERP? Don’t be. According to industry experts, the future of ERP is in the cloud.

Which One to Choose: Public, Private, or Hybrid?

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When weighing which cloud platform to choose, it’s critical to consider data protection, app workloads, and the level of synchronization you need between certain apps and enterprise functions. Nowadays, cloud developers offer three types of environments, as follows:

  1. Public cloud makes available storage, services, and apps to users over a computing model known as "as a service."  Subcategories of public cloud include desktop as a service (DaaS), software as a service (SaaS), platform as a service (PaaS), and infrastructure as a service (IaaS). Public cloud environments are typically suited to enterprises operating within industry sectors with fewer regulations.
  2. Private cloud uses similar tools as public cloud platforms, with the main difference being that this computing model has been designed to function within local data centers. The main advantage of opting for private cloud computing isn’t only that you can use the same architecture models and apps within the entire data center, but also that private cloud environments offer advanced security and control, high availability, and great flexibility, which allow you to shift workloads among different servers as usage increases. Some cloud service providers offer private versions of public clouds, allowing enterprises to benefit from private cloud computing without having to invest in hardware. Private cloud computing has been especially designed for organizations operating within highly regulated industries, such as energy, manufacturing, and healthcare. Considering this aspect, private cloud may become the future of enterprise resource planning.  
  3. Hybrid cloud comprises both public and personal cloud environments, enabling enterprises to run the main apps on private clouds, while relying on public clouds for more extensive use. Hybrid clouds are usually used by e-commerce businesses, which must offer flexible environments to clients (facility provided through public clouds) and comply with strict regulations that govern the way sensitive data, such as personal details and payment information, must be handled (task accomplished through private clouds).   

Private Cloud Becomes the Future

Although information technologists predict that most ERP users will upgrade from on-premise solutions to hybrid clouds, and opt for private cloud computing at a later date, an increasing number of professionals agree that private cloud will be the future of ERP. Why?  Simply because private cloud computing models offer ERP users advanced configuration and compatibility options together with the opportunity to implement the tools needed to achieve regulatory and accreditation compliance.

Going One Step Further

You’ve probably heard about the BYOD (Bring Your Own Device) concept, which encourages employees to bring their personal mobile devices to work or use them to get the job done while on the go. Although BYOD is still a new concept for many, another trend is on the rise. Bring Your Own Cloud, referred to as BYOC, allows employees to combine enterprise cloud with personal cloud computing to complete job tasks.

Microsoft, one of the few forward-thinking software developers supporting innovation, delivers the SkyDrive APIs, which help users connect personal content with enterprise data in the cloud. Such apps bring along incredible flexibility by giving people the ability to access, modify, send, and back up data from any location, without reconfiguring their devices and disrupting workflows.

Although this may direct ERP toward a whole new direction, IT experts point out a very serious matter: could BYOD and BYOC concepts coexist safely in the same environment?  Is it safe to encourage integration of organizations’ public or private clouds with employees’ personal clouds in a virtual world facing a rising barrage of cyber attacks? Will this irremediably impact the future of ERP? Well, we guess only time will tell.  

Cloud ERP Systems

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