Some CIOs hesitate when it comes to a cloud-based ERP implementation. As an article on the Panorama Consulting Solutions website explains, they’re concerned about what the change will mean for their businesses.
Cloud computing certainly represents a different way of interacting with the system. There’s a perception that users have less control when data is stored in the cloud. People for whatever reason feel comfortable knowing that the data is right there and they can touch it. The reality is, of course, that it’s probably safer in the cloud than it is stored on-premises in terms of redundancy and being backed up.
Still, a Damovo survey of 100 IT directors found that 80 percent feel as though they’re “held more accountable if things go wrong as a result of moving to the cloud.” Of course, that’s one of the leaps of faith users make when moving to the cloud. They’re dependent on whoever the provider is and the SLA. IT only gets noticed when things go wrong or when they’re not working.
Most of the concerns CIOs and IT directions have can be addressed through incremental and phased ERP implementations. Many businesses have both on-premises and cloud solutions. By having some pieces in the cloud, they’re balancing out the risk. They’ll keep their most critical functions in-house — where they have more perceived control over those applications — and then have other applications, like a CRM system, in the cloud.
Another important consideration in moving to the cloud is organizational change management. Moving an ERP system to the cloud means taking a different approach to IT than the standard way. Instead of data maintenance, it’s more about network speed, Internet speed and having backups. It’s important to have at least two ways to get to the data.
As the Panorama Consulting Solutions website concludes, migrating to the cloud usually is beneficial in the long term, but it’s not always an easy move. Working with a partner offering cloud professional services can help make sure the transition goes smoothly.
Panorama Consulting Solutions, December 2012