The Cloud is here and is not going away. With the rapid growth of the Salesforce ecosystem, more and more companies are considering independent software vendors’ cloud applications for that platform. This also applies to those companies looking for cloud-based ERP solutions. Many companies that have their CRM and other software on that platform are now considering an ERP written on Salesforce. Rootstock Software for manufacturing ERP is one such product, whereby the company can leverage their investment in the Salesforce platform and integrate their ERP seamlessly with their other Salesforce cloud apps.
The Cloud, the Cloud Ecosystem and Cloud ERP
Before the advent of the cloud, business applications were limited to very complicated and expensive systems. These systems required enormous hardware and software resources to run them, as well as large IT departments to handle installation, configuration, testing and maintenance. Larger companies that are still using these older systems are getting increasingly frustrated by their inefficiencies and maintenance costs. Also, they are not contemporary. For example, they are not getting access to big data and business intelligence that are needed to compete in today’s demanding global markets.
The arrival of cloud computing has changed the business application landscape for a wide range of industries. With the cloud, companies have been able to replace the high costs and inefficiencies of their old, on-premise, spreadsheet-heavy systems with on-demand business apps that store big data on servers and deliver usable solutions on demand via the web versus having hardware on the customer’s site. Cloud-based software can be up and running in significantly less time than on-premise software. They are less expensive than those old on-premise systems and can easily be scaled up or down. End users simply open their browser, log in to the system and access important data instantly.
These days, companies run all kinds of apps in the cloud, including enterprise resource management (ERP), customer relationship management (CRM), HR, sales, accounting and more. As the availability of cloud-based software has exploded, the complicated system of interdependent components that work together to enable cloud services has come to be called the “cloud ecosystem.” One of the most popular of these cloud platforms is Salesforce.
Cloud-based ERP is fast becoming a real alternative to traditional on-premise ERP systems. In a recent study completed by Gartner (Survey Analysis: Adoption of Cloud ERP, 2013 Through 2023), CIOs and application leaders were advised to consider cloud ERP as a replacement for old ERP systems that are either no longer supported or are still running on old platforms such as mainframe computers. A total of 47 percent of participants in the survey (companies from North America, EMEA, APAC and Latin America that range in size from $10M to $10B) said that they planned to move their core ERP systems to the cloud within five years.
Manufacturers are under particular pressure in the global market, where supply chains reach across continents and the demands of consumers change constantly. They are moving to cloud ERP software for a variety of reasons, including scalability, access to critical data instantly from anywhere in the world and, ultimately, the ability to bring their products to market faster without sacrificing quality. According to a recent survey by Mint Jutras, a leading research and advisory firm that tracks ERP trends, cloud-based applications will steadily grow from 22 percent of all manufacturing and distribution software installed to 45 percent within ten years.
Stay Tuned for Part 2!