Columbus-7-Reasons-ERP-Cloud-A4

SEVEN REASONS TO
CONSIDER ERP IN THE CLOUD
SPECIAL REPORT SERIES
ERPIN2014
ANDBEYOND

INTRODUCTION . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3
TRY BEFORE YOU BUY . . . . . . . . . . . . . . . . . . . . . . . . . . . 4
TAKE ADVANTAGE OF THE MOST
ADVANCED TECHNOLOGY . . . . . . . . . . . . . . . . . . . . . . . . . 6
GENERATE MEASURABLE COST SAVINGS . . . . . . . . . . . . . . 8
RUN A MORE EFFECTIVE AND SCALABLE
IT OPERATION . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10
STRENGTHEN THE INTEGRITY AND SECURITY
OF YOUR ERP SOLUTION . . . . . . . . . . . . . . . . . . . . . . . . . 12
ENABLE GLOBAL USER PRODUCTIVITY ON ANY DEVICE . . .14
ACCELERATE YOUR IMPLEMENTATION . . . . . . . . . . . . . . . 16
YOUR BEST-PRACTICE CHECK LIST . . . . . . . . . . . . . . . . . 18
CONCLUSION . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 20
ABOUT COLUMBUS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 22
Columbus RapidValue . . . . . . . . . . . . . . . . . . . . . . . . . . . 22
Columbus Care . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 23
CONTENTS

B
usiness decision makers who are
choosing an ERP system also have
to decide whether to run their new
business management solution
on-premise or in the cloud. Many
cloud-based ERP offerings are available today, including
public, private, hybrid, and hosted solutions. What these
deployment models have in common is that the ERP
solution resides in a technology provider’s data center,
away from the customer’s business location. Technology
users access the system through the internet. Most
cloud service providers manage solution upgrades and
data protection for their clients.
In recent years, the adoption of cloud technology has
accelerated. We expect this trend to continue in 2014
and beyond. More companies than ever decide to base
their new ERP deployments in the cloud or to migrate
their existing solutions to it. The market for cloud-based
ERP deployments and other cloud technology
services will continue to grow. How can your company
take advantage of it? What are the real benefits of
implementing ERP in the cloud?
At Columbus, we help companies in many industries
deploy their ERP systems. We also assist them in making
the business case for the best implementation model.
Read about some reasons why some companies deploy
business-critical technology in the cloud. We hope that
our experience can help you arrive at a deployment
strategy that is efficient, reliable, and economical, and
that can meet your company’s changing needs.
Introduction
3
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Try Before You Buy
W
hen businesses make large
investments, they run the risk
of making a wrong decision
The ability to try a new
technology before committing
to it greatly reduces this risk When you consider
a cloud-based solution, you can safely
evaluate it before you make an acquisition
or sign a long-term service contract For
a limited time, maybe even for a specific
business group or organization, you can
have your ERP solution set up in the cloud
so you can test it thoroughly The technology
partner and hosting service provider you engage
with will be able to work with you to establish the
most meaningful and practical parameters for a pilot
project
In this way, you can see how the capabilities of
the solution meet your business needs You also
can verify what the accessibility of the solution is
from a variety of locations and mobile devices You
experience firsthand how well the solution responds
in a realistic working environment Your ERP users
4
!
Find additional information here:
www.columbusglobal.com
Gain the
approval and
buy-in of
concerned
stakeholders
Thoroughly
evaluate and
test-drive an ERP
solution before you
commit to it
KEY
BENEFITS

participating in the test can provide feedback from
their perspective regarding solution features and
the practicality of the cloud implementation. When
you make your final decision, you can do so with the
assurance and comfort resulting from hands-on
exposure and comprehensive experimentation with
the cloud-based ERP solution.
Some other technologies, such as customer
relationship management (CRM) systems, are ahead
of ERP in terms of cloud deployment. Today, most
companies still run their ERP solutions on-premise. As
ERP in 2014 and following years moves into the cloud
more and more, the ability to experience the solutions
before purchasing them will help rule out doubts and
uncertainties for those decision-makers for whom
the cloud is a new and unknown territory.
5
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C
loud technology enables you
torunyournewERPsolution
in an enterprise-class,
f i t - f o r - p u r p o s e
environment. Good
cloud providers invest in the latest,
high-specification technology to enable
your business application to run at the
greatest speed, with fast, reliable access
from around the globe. The cost of
replicating this environment in
your own operation would include
significant upfront capital and
resource commitments, plus
the costs and effort of staying
up-to-date with evolving technology,
ongoing maintenance of upgrades, and
support for changing usage scenarios.
Many organizations that have been running
an on-premise ERP solution may have saved cost
through inertia. Having stopped considering ERP as
a strategic technology that plays a role in moving
the business forward, they no longer
invest in their solution and the
technology that surrounds it.
Often, they are behind in terms
of upgrades to newer versions
or capability enhancements. This
approach may have some relatively
minor, short-term cost benefits, but it
may have damaged the competitiveness
of the business. The costs of any future
upgrades will be significantly higher, and
those updates will also require more
adjustments in the software products
that integrate and interact with the
ERP system. When you move ERP into
the cloud, you do not need to ever worry
about these issues. Through your cloud
service provider, you can stay current with
the latest technologies, including software and
hardware upgrades. You can take advantage of all the
business benefits of ERP at a controlled cost, usually
a fixed monthly fee.
Take Advantage of
the Most Advanced
Technology
6
!
KeepyourERP
systemcurrent
withoutthecosts
andheadachesof
managingupdates.
Takeadvantage
ofbestavailable
technologyto
elevatethestrategic
valueofERP.
KEY
BENEFITS

7
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W
hen you make the business
case for ERP in the cloud,
you can score a strong
point with this key benefit,
especially when you need
to convince the CFO: On average, the costs of cloud
computing are far less than those of on-premise
solutions. In traditional, onsite deployments,
your company incurs the significant
upfront costs of software licenses and
new or updated servers and network
equipment. When you deploy in the
cloud, you do not face those expenses.
Cloud ERP solutions are usually billed per
month and per user. You can fully finance
your new solution through operational costs
rather than by means of upfront capital
expenditures. This cost model also helps
to keep your IT budget predictable and
controlled over the timeframe of the
cloud-service agreement.
Generate Measurable
Cost Savings
8
!
Reducethe
costsandresource
impactofITsupport,
maintenance,and
ERPmanagement.
Eliminate
upfrontsoftware
licensingand
hardware
investments.
PayfortheERP
capabilitiesyou
need,whenyou
needthem.
KEY
BENEFITS

Let’s summarize the one-time and ongoing costs
savings associated with cloud computing:
|| Obviously, you don’t pay software license fees.
|| You also do not need to purchase new servers or
network infrastructure.
|| The physical footprint of your operation is
insignificant—there is no need for rack or data
center space.
|| Cooling and power consumption costs are less
because you do not need IT hardware such as
server racks.
|| The high flexibility of cloud services means you
only pay for actual users and applications. When
business requirements change, you can adjust
the number of users or the ERP modules and
applications they work with.
|| You may be able to generate additional savings
in operational costs because cloud-based ERP
requires less support and maintenance from IT, so
you can reassign IT staff to more business-critical
tasks.
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B
ecause your hosting partner assumes
most of the day-to-day tasks of
running your solution in the cloud,
you can offload many tasks from your
IT department. The IT team no longer
needs to perform a multitude of jobs that range from
changing backup tapes to implementing patches
to rolling out software updates. Your cloud partner
will also monitor several performance indicators to
ensure that your ERP system runs at an optimal level.
Taking these time-consuming tasks away from your
IT department enables it to focus on the more
strategic aspects of technology operation where
it can drive real business benefits.
Run a More
Effective and Scalable
IT Operation
10
!
AccessERP
andtechnology
expertiseas
thebusiness
requiresit.
Outsource
busyworkand
useyourITgroup
formorevaluable
tasks.
KEY
BENEFITS

At the same time, you can extend your company’s IT
resources by accessing your cloud service provider’s
capabilities for certain tasks and functions. Your
provider’s staff should include highly qualified IT
experts who can work effectively with a number
of the company’s customers. These professionals
would have deep knowledge of applications
and environments that it would not be cost- or
resource-effective for you to support and staff. In
engaging with your cloud service provider, you can
pay for the specific skills that you need, when you
want them. At the same time that you gain access to
advanced technical expertise and skills, you can ease
the task load and reduce the resource impact on your
internal IT staff.
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M
any business leaders
experience a level
of discomfort with
moving ERP solutions
to the cloud. They fear
that one of their most valuable assets,
business data, may become compromised
and accessible to unauthorized
persons through the web. They
are also often concerned about
connectivity, wondering about
the consequences if the
company cannot access the
solution because of internet
connectivity problems.
We have good news. The security,
availability, and integrity of
cloud-based ERP and other
applications has made huge
advances in recent times, and we
can expect even more improvements
in this area as technology providers
refine their offerings in 2014. Reputable
cloud providers will generally have far greater
security expertise than you can afford
to maintain in-house. They understand
companies’ security concerns and have
the insight and resources to address them.
Business continuity, data protection, and
disaster recovery are at the core of cloud
Strengthen the
Integrity and
Security of Your
ERP Solution
12
!
Benefitfrom
unprecedentedlyhigh
integrityandavailability
ofyourdata,ERPsystem,
andapplications.
Drawonyour
cloudprovider’s
expertiseand
infrastructureto
enhanceyour
businessviability.
KEY
BENEFITS

providers’ business model. They can work with you
to make recommendations and strategize the best
way to protect your data against any security threat
or viability challenge. They will be able to reduce your
risk exposure from software-related liabilities such
as viruses, phishing, or unauthorized access by using
such tools as automated security packet sniffers
or sophisticated firewalls. In addition, they also can
safeguard the physical environment of your data and
applications by using biometric control systems, CCTV
cameras, and many other resources and technologies.
Our experience and industry statistics show that the
availability of ERP systems in the cloud is strongly
increased compared to that of on-premise solutions.
Stringent industry standards continue to improve the
reliability and availability of cloud-based technology.
A credible, capable cloud service provider will be able
to guarantee you an extremely high percentage of
solution uptime, so you can do business without
interruption.
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T
aking your ERP solution to the
cloud can help you transcend some
of the limitations and challenges
that can accompany on-premise
implementations. When you run
operations in several sites and want to deploy
an ERP system for the entire company, the
complexity of on-premise implementation
increases significantly. You need to ensure
that employees at all sites can easily access
the solution and work effectively with it,
so the IT department or hired consultants
need to create and maintain a reliable, fast
communications infrastructure. Your company
thereby incurs increased costs and resource
overhead. As the business grows and changes, you
will also need to plan to scale the communication
technology the ERP system requires.
Enable Global
User Productivity
14
!
EnableERPusers
tobeproductive
atanylocation,
usingany
connecteddevice.
Benefit
fromsuperior
communications
technologieswithout
acquiringthemat
greatcost.
Providean
excellentuser
experiencewith
consistentERP
performance.
KEY
BENEFITS

When you deploy your ERP solution in the cloud, these
concerns fall aside. All of your ERP users can access
the system through the internet, from any location in
the world. That ability, in turn, can greatly help user
adoption of the solution. Your cloud service provider
already owns all the infrastructural resources needed
to make sure the ERP system runs at optimal levels of
performance and reliability.
There are other advantages when you take ERP
to the cloud, depending on the capabilities of your
specific ERP solution. Your employees can use their
preferred, internet-connected hardware when they
access the ERP system—desktop computers, laptops,
tablets, and other mobile devices. What’s more, cloud
technology makes it very easy to connect the ERP
system with the collaboration and social-media tools
your company uses, resulting in potential increases in
employee productivity.
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Accelerate Your
Implementation
A
ny ERP implementation, no matter
whether it is on-premise or in the
cloud, is going to take time and
needs very careful planning and
project management Where the
cloud can help is with the IT infrastructure Because
there are no additional hardware requirements,
you can save time that you would otherwise spend
by procuring and installing servers and network
equipment, and by managing any associated
issues These implementation benefits may
well compound if your roll-out involves multiple
regions, subsidiaries, and locations Once your
system is up and running, you will again benefit
from largely care-free, fast upgrades and the
ability to easily add more users as the business
grows
16
!
Easily connect
other business
groups, subsidiaries,
and locations to the
ERP system
Make
your ERP
implementation
rapid and
predictable
KEY
BENEFITS

You might also want to be aware of the different
cloud deployment models most commonly practiced.
Depending on your business model and requirements,
each of them has its advantages in making your
implementation fast and painless. Your technology
partner can help you make a wise choice among these
options:
Software-as-a-Service (SaaS): Multiple
organizations share hardware resources. Customers
typicallyenterintoarentalorsubscriptionagreement,
and may rely on shared or separate instances of their
software applications. Most of the businesses using
this cloud deployment model are smaller companies.
Hosted ERP: Customers run their cloud ERP
solutions on dedicated server and network hardware
and typically use separate instances of their
applications. Many larger businesses prefer this
model.
Hybrid ERP: Businesses maintain on-premise
software and integrate it with a number of
cloud-based services. Hybrid ERP provides a level
of flexibility and control that some companies find
valuable. In this type of deployment, they can easily
migrate from one solution delivery model to the other
as their business needs require, without losing data
or functionality.
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□□ Review your cloud service provider’s uptime
service-level commitment.
□□ Check on applicable ratings and certifications for
your service provider and data center.
□□ If you can, arrange for a data center tour for
yourself and concerned business stakeholders.
□□ Includemultisiteandglobalgrowthconsiderations
in your implementation planning.
□□ Take advantage of cloud-enabled mobile ERP
capabilities.
□□ Work with your partner to determine the best
cloud deployment model for your business.
□□ Learn from the cloud experience of your peers in
other organizations.
Your Best-Practice
Check List:
□□ Before committing to a purchase, perform a
cloud-based ERP pilot project.
□□ Involve key business stakeholders and influential
users in the cloud pilot.
□□ Take the cloud vs. on-premise decision as an
opportunity to lift the strategic value of ERP.
□□ Reviewyourcloudprovider’sservicecommitments
for software and hardware enhancements.
□□ In comparing on-premise to cloud-based ERP,
consider all one-time and ongoing costs and
savings.
□□ Project costs and savings through the contract
term with your cloud service provider.
□□ AssesstheimpactofcloudERPontheproductivity
and resource-efficiency of your IT team.
□□ Verify which IT skills and expertise you can access
through your cloud service provider.
18
!

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I
n 2014, many enterprises and smaller
businesses will move their ERP systems and
other business-critical applications into the
cloud. ERP implementation in the cloud may
not be the best option for all companies, but
it is definitely worth your consideration. If you are
newly implementing an ERP solution, we recommend
that you review cloud deployment options and
evaluate whether the cloud is a good fit, given your
organization’s business model and expectations
for growth. If you already run your ERP system
on-premise, it’s worth thinking about the possible
savings, efficiencies, and flexibility you might achieve
as you offload most of the ERP administration to a
trusted provider. Your technology partner can help
you determine whether a cloud deployment makes
good sense for your business, help you assess any
financial and operational advantages, and plan for the
implementation that best fits your business.
Conclusion
You may also find the other papers in our
“ERP in 2014 and Beyond” series helpful:
|| Seven Ways To Avoid ERP Implementation Failure
|| Seven Ways That Business Process Management
Can Improve Your ERP Implementation
|| Seven Ways To Optimize Your Existing ERP
Solution
|| Seven Ways To Help Data Migration During
Implementation
20
!

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Columbus is an industry-based consultancy and
award-winning technology developer focused on the
manufacturing, food processing, and retail industries.
We are the preferred consultancy for ambitious
companies wanting to streamline business processes,
improve operational efficiencies, reduce costs, and
improve visibility into their businesses.
Our approach to solving our clients’ issues can
best be described as proactive. We challenge our
clients’ traditional ways of thinking, help them see
new opportunities for improvements, and take
responsibility to drive change in their organizations.
We’ve delivered these business benefits for over 25
years to many of the leading companies worldwide.
About Columbus
Columbus is a long-time developer of award-winning
industry software and has recently become well
known for developing Columbus RapidValue.
RapidValue is a business process management tool
that drives increased client value for ERP solutions.
It delivers a shorter implementation with more
predictable results by incorporating hundreds of best
industry practices accumulated through in over 6,000
Columbus implementations. This allows Columbus to
focus on streamlining the processes that make our
clients unique.
Companies all over the world are investing in
RapidValue and enjoy the benefits of shorter times to
value, quicker and less risky implementations, and the
industry leadership and knowledge acquired from the
thousands of Columbus deployments that preceded
theirs.
Columbus RapidValue
22
!

ColumbusCare is unique to Columbus—it is how
we take care of our clients, 24/7 worldwide.
With ColumbusCare, you get a well-trained team
dedicated to improve your system’s efficiency,
cost-effectiveness and risk resistance. Whether
you’re looking for enterprise-level support, upgrade
options, or system enhancements, ColumbusCare
provides flexible service levels to meet the needs of
your business.
ColumbusCare
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SPECIAL REPORT SERIES:
ERP IN 2014 AND BEYOND
’Columbus’ is a part of the registered trademark ‘Columbus IT’
Seven Ways
To Avoid ERP
Implementation
Failure
Seven Reasons
To Consider ERP
In The Cloud
Seven Ways
To Help Data
Migration During
Implementation
Seven Ways
To Optimize
Your Existing ERP
Solution
Seven Ways That
Business Process
Management Can
Improve Your ERP
Implementation

Columbus-7-Reasons-ERP-Cloud-A4

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