According to a recent report by the Cloud Security, the companies are attracted to cloud ERP systems for their scalability and automation of security patches. On the other hand, the challenges in compliance and the confidentiality of data in the cloud are issues that continue to cause concern.
Results of the Impact of Cloud on ERP report prepared by the Cloud Security
After surveying 200 companies about their ERP migration plans, the CSA’s Impact of Cloud on ERP report finds that nearly two-thirds of companies plan to migrate their ERP system to the cloud or are already doing so , despite the fact that many of them show concern when it comes to regulatory compliance, security and the transfer of sensitive data.
In fact, according to the CSA report, companies plan to spend $30 billion on cloud ERP systems in 2021 and a total of $266 billion on all public cloud-based services.
Regarding the reasons for migrating the ERP to the cloud, scalability stands out (65% of those surveyed), followed by a lower cost of ownership (61%) and the application of security patches and updates by the provider (49%). .
Advantages of an ERP in the cloud in real time
Updating ERP solutions is a decision that is not usually started to be evaluated until it is too late. It typically occurs when the expense associated with an outdated ERP is unsustainable or when compliance issues lead to penalties and branding issues. The reality is that today it is no longer possible to operate in a global market depending on an outdated ERP. Migrating to cloud solutions such as the ERP Microsoft Dynamics 365 brings a series of obvious advantages:
- Growth Drive: On-premises ERP solutions were designed years ago against a background of incremental growth measured by fiscal years. Today, companies that have relied on a digital transformation strategy are advancing at a rate. That can be counted for months. It is unthinkable to depend on an outdated ERP that forces you to solve structural, integration and strategy problems almost on a daily basis. Likewise, ERP in the cloud provides the necessary competitive advantage to internationalize the business, without depending on the expertise of local IT teams and having to invest in hardware and software in each geographical location.
- Mobility: The ERP in the cloud gives the option of working at any time and from anywhere. Therefore, it streamlines decision-making and speeds up all processes, in turn increasing productivity. A work environment focused on remote workers. The concept of flexibility and the new business model that new technologies are driving is not compatible with ERP solutions that can only be used from the office.
- Decentralization: The new business models entail the substitution of rigid vertical structures for a more fluid and decentralized approach. A business model with open structures that seek to combine efficiency and pragmatism. ERP solutions in the cloud facilitate a single vision of the business, avoiding the fragmentation that information silos entail and that can lead to errors in decision-making.
Main concerns of companies in the face of the cloud challenge
The Impact of Cloud on ERP report prepared by the Cloud Security shows. That 65% of those surveyed are concerned about the transfer of confidential data. The CSA indicates in this regard that to make use of cloud-native migration tools. That provide access control and encryption of data at rest and in transit. The companies will have to redesign their systems for the cloud environment. This will only present a small added challenge for companies that want to move their ERP solutions. The cloud: they will have more design work ahead of them. They won’t just have to specify the type of server and storage instances they want.
59% of the companies surveyed are concerned about security. In fact, tests show that the security of cloud ERP solutions can be even better. Than the security of in-house implementations. In fact, the CSA warns that 95% of failures in the cloud are caused by the customer. And that the security challenge is not the cloud itself, but its own policies, configurations and technologies.
Other common concerns include disruptions to business operations caused by the cloud migration process (47%). And the time required to migrate data (46%). In fact, 90% of CIOs have already suffered from cloud data migration projects that have not gone according to plan due to their complexity. At Dynamics Square we are a Microsoft Gold Partner and our philosophy is to minimize. The risks of an implementation by facilitating the work of users.
