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Cloud Adoption on a High while Companies Adopt Two Tier ERP strategy

Cloud Adoption on a High while Companies Adopt Two Tier ERP strategy

With cloud technology taking a leap from transformation to innovation, organizations have rather become decisive of whether they should replace the maturing ERP (Enterprise Resource Planning) system with cloud- based ERP. CIOs and CTOs who have a strategic approach to business regard this question as utmost important.  The ongoing survey results reinforce the fact that several firms do opt for this cloud replacement.

An article published by Louis Columbus (contributor to Forbes and Business to Community), reveal that Cloud-based ERP adoption has been more agile than predictions. A recent study by Gartner's entitled,Survey Analysis: Adoption of Cloud ERP 2013 through 2023, published on 24th January, 2014 recommends CIOs to consider cloud as a probable replacement of maturing ERP. The methodology which was based on survey upon companies ranging $10M to $10B in size predicted that about 47% of companies intend on Cloud adoption within the next five years.

The prevalent ERP processes still concentrated more on administrative ERP, including human capital management, and financials and procure to pay in comparison with manufacturing functions.  In a world guided by micro and macro economic pressures, manufacturing companies need to earnestly realize the benefits cloud technology will hold in future. About 30% of the respondents mainly from the manufacturing sector opted for an on premise ERP system.

Infact several manufacturers are opting for a two tier ERP scheme to upgrade their system and preserve data integration and efficacy. In addition to having a legacy ERP system at the centralized level, they also want to employ a two tier ERP system at the field or site level. This entire system helps to give clarity about the other branches in a more cost efficient manner.

Benefits of a two tier ERP strategy

  • Can be employed at a double faster rate as compared to in-house applications.
  • Smooth customization of solutions for respective subsidiaries.
  • Diminish total cost of ownership TCO, which is about 50% of the cost of on premise systems.
  • Better visibility of site location through inherent dashboard.

Looking for the best ERP solution for your company? We offer you everything you are looking for. Please contact us through our Contact Us section.

Shyam Gopal

Executive Vice President Worldwide Sales at Inspirria CloudTech

Shyam Gopal , is a seasoned sales leader with over +20 years of diverse expereinece working for world leading technology companies in the area of HIS, ERP, Datacentre solutions, network security. He heads Global Sales at Inspirria Cloudtech Group as their Executive Vice President - Worldwide Sales .

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  • Inspirria Cloudtech Pvt. Ltd.
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