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Should Your Company Do a SaaS ERP Migration?

Should Your Company Do a SaaS ERP Migration?

SaaS ERP Migration

The decision of doing a SaaS ERP migration of your on-prem ERP system requires careful evaluation and planning. Here are three reasons why:

  • Risk: Although a seamless transition to the cloud is commonly advertised by vendors, if you have mission-critical customizations in your On-Prem ERP system, your SaaS ERP migration could present some challenges .
  • Cost: By doing a SaaS ERP migration, you would be handing your ERP maintenance over to your vendor, and this could include costs that were not considered originally.
  • Limited vendor support:  Related to the previous bullet point, the support service that ERP vendors provide can sometimes be less effective and not tailored to your organization’s needs.

We all know that Cloud is the ultimate destination, but how you get there matters and if you find after thorough analysis that is not the right time for your company to look into a SaaS ERP migration, that is a valid option.

There’s multiple reasons companies are not moving to the cloud. Maybe it has to do with security concerns, or how mature SaaS ERP applications are. Perhaps is the fact that industry-specific features are not supported or the lack of flexibility for customizations that SaaS ERP has.

Companies should make the cloud decision based on their business goals (modernization, speed of innovation, cost cutting and business transformation) and not on vendor timelines. Although, it is important to know the roadmap for how their products will evolve, following the vendors lead will not always be the best path for you as a company.

Instead of going with that roadmap, companies should take a business-driven approach. With a business-driven roadmap, you regain control over your systems and are able to invest your resources in the areas where they will do the most to drive innovation and business outcomes.

What Can You Do?

Modernizing your ERP system to drive innovation and focus on your differentiators is a journey that should be custom tailored to your IT & business needs.

IT Convergence can help you identify the best path forward and recommend the optimal technology roadmap.

Our ERP Roadmap Assessment will provide you with:

  • ERP Best Practices and Recommendations to Drive Efficiency
  • Strategy for Data Capture & Cleansing to Support Analytics
  • Evaluation of Oracle On-Premise Environment & Recommendations
  • Roadmap for Your EBS and Oracle Cloud: Optimal Future State

ERP Roadmap Assessment

 

FAQ on SaaS

Q: What is cloud ERP?
A: Cloud ERP is a type of enterprise resource planning (ERP) software that is hosted on a cloud computing platform, rather than on premises within an enterprise’s own data center.1
Q: What is SaaS ERP?
Software as a service (SaaS) is a software distribution model in which a third-party provider hosts applications and makes them available to customers over the Internet. SaaS is one of three main categories of cloud computing, alongside infrastructure as a service (IaaS) and platform as a service (PaaS).
SaaS ERP is a hosting model for ERP software which involves a firm’s ERP software applications on a vendor’s servers.
Q: What are the benefits of SaaS?
The goal of SaaS ERP hosting is to reduce costs software, hardware and support.
Source: TechTarget