Comments on: Different Types of Cloud ERP http://erpcloudnews.com/2010/05/different-types-of-cloud-erp/ News and commentary about accounting, ERP, and CRM software in the world of SaaS and cloud computing Wed, 09 May 2012 03:16:17 +0000 hourly 1 http://wordpress.org/?v= By: Andrew Hayward http://erpcloudnews.com/2010/05/different-types-of-cloud-erp/comment-page-1/#comment-1003 Andrew Hayward Wed, 21 Jul 2010 16:43:52 +0000 http://erpcloudnews.com/?p=1308#comment-1003 Given that a major reason for organisations looking to the cloud for ERP deployment is cost savings, there still remains the barrier of expensive implementation service delivery. As we all know, the licence costs of any ERP implementation is only an element and an ever decreasing one in some vendors strategy! A SaaS model of pricing for both software AND implementation services (including on-going support) thus removing any initial expenditure would be true SaaS. It changes the way service delivery companies will operate but it has to be the way to go! Given that a major reason for organisations looking to the cloud for ERP deployment is cost savings, there still remains the barrier of expensive implementation service delivery. As we all know, the licence costs of any ERP implementation is only an element and an ever decreasing one in some vendors strategy! A SaaS model of pricing for both software AND implementation services (including on-going support) thus removing any initial expenditure would be true SaaS. It changes the way service delivery companies will operate but it has to be the way to go!

]]> By: Thiva http://erpcloudnews.com/2010/05/different-types-of-cloud-erp/comment-page-1/#comment-705 Thiva Wed, 23 Jun 2010 18:09:10 +0000 http://erpcloudnews.com/?p=1308#comment-705 Your post is good.. In the recommendation part, you mentioned about "Key questions" 3. Do you need to own your operating environment and the location of your data? 4. Do you prefer to own software instead of renting it? If we move to cloud platform, how could we own the operating environment and the location of our data? cuz the data will be stored somewhere in the data centre. We completely lose control over our data. There is no more operating environment. We just have to work with the browser to access the application. Cloud idea is basically for "Renting" and not "owning" something.. So if we answer "Yes" or "Maybe" to these questions, then we should prefer only On Premise Solution. Correct me if I'm wrong. For small business solutions cloud may provide some good space but for ERP I feel it's too early to migrate to cloud. Since cloud computing doesn’t have any data governance and it has got to mature in terms of standardization. Regards, Thiva.. Your post is good..

In the recommendation part, you mentioned about “Key questions”
3. Do you need to own your operating environment and the location of your data?
4. Do you prefer to own software instead of renting it?

If we move to cloud platform, how could we own the operating environment and the location of our data? cuz the data will be stored somewhere in the data centre. We completely lose control over our data. There is no more operating environment. We just have to work with the browser to access the application.
Cloud idea is basically for “Renting” and not “owning” something..

So if we answer “Yes” or “Maybe” to these questions, then we should prefer only On Premise Solution.

Correct me if I’m wrong.

For small business solutions cloud may provide some good space but for ERP I feel it’s too early to migrate to cloud. Since cloud computing doesn’t have any data governance and it has got to mature in terms of standardization.

Regards,
Thiva..

]]> By: David Chou http://erpcloudnews.com/2010/05/different-types-of-cloud-erp/comment-page-1/#comment-510 David Chou Mon, 07 Jun 2010 02:33:38 +0000 http://erpcloudnews.com/?p=1308#comment-510 Great post! Just want to take the opportunity and point out that there’s more to cloud computing than the popular notion of hosting in the cloud. With cloud platforms, the aspect of “without worrying about the operating environment” can significantly simplify the implementation of horizontally scalable applications (Facebook, Twitter, or Mafia Wars and Farmville), which is a different class of applications architected differently than today’s vertically scaling business applications (or like ERP applications). When leveraged effectively, these applications can operate in an environment that assumes a near-infinite amount of infrastructure, and can result in new business models and initiatives than trying to lift-and-shift traditional applications into a utility computing model. We think cloud computing, when leveraged correctly, can improve IT agility (in being able to deliver services quicker and cheaper) which in turn can yield many business benefits, and is probably what CIO’s should focus on, rather than simply cost reduction. Of course, this is also more related to the multi-tenant SaaS context as discussed earlier, as that type of applications will typically be architected using similar principles. :) Best regards, -David Chou (Microsoft) Great post! Just want to take the opportunity and point out that there’s more to cloud computing than the popular notion of hosting in the cloud. With cloud platforms, the aspect of “without worrying about the operating environment” can significantly simplify the implementation of horizontally scalable applications (Facebook, Twitter, or Mafia Wars and Farmville), which is a different class of applications architected differently than today’s vertically scaling business applications (or like ERP applications). When leveraged effectively, these applications can operate in an environment that assumes a near-infinite amount of infrastructure, and can result in new business models and initiatives than trying to lift-and-shift traditional applications into a utility computing model.

We think cloud computing, when leveraged correctly, can improve IT agility (in being able to deliver services quicker and cheaper) which in turn can yield many business benefits, and is probably what CIO’s should focus on, rather than simply cost reduction.

Of course, this is also more related to the multi-tenant SaaS context as discussed earlier, as that type of applications will typically be architected using similar principles. :)

Best regards, -David Chou (Microsoft)

]]> By: Manchester http://erpcloudnews.com/2010/05/different-types-of-cloud-erp/comment-page-1/#comment-452 Manchester Tue, 01 Jun 2010 18:08:10 +0000 http://erpcloudnews.com/?p=1308#comment-452 re: Joubert Comment Thank you for your comments. I think a posting dedicated to multi-tenancy is in order. As you mentioned, its too much to cover in one paragraph. Key items to cover include flexibility, cost, control, expertise. re: Joubert Comment
Thank you for your comments. I think a posting dedicated to multi-tenancy is in order. As you mentioned, its too much to cover in one paragraph.

Key items to cover include flexibility, cost, control, expertise.

]]> By: Joubert http://erpcloudnews.com/2010/05/different-types-of-cloud-erp/comment-page-1/#comment-427 Joubert Fri, 28 May 2010 20:39:49 +0000 http://erpcloudnews.com/?p=1308#comment-427 Your article is good insofar as it goes, but it doesn't go far enough. There is a huge distinction between single-tenant and multi-tenant hosting, and you make the distinction sound like a footnote. Your assertion that "Multi-tenant options should be priced lower to offset the lost of flexibility" is specious. Which flexibility are you losing, the flexibility of paying for shelfware? for doing costly and disruptive upgrades? for deferring maintenance and falling behind the technology curve? for customizing the code until you own it forever? for maintaining expensive IT staff? for maintaining a global network of servers and support staff? You attempt to justify a cloud platoform by asserting that such flexibility is desirable. Then, you ask leading questions to justify your recommendation. Customizations are a major contributor to lock-in and costly upgrades, so why not try and do them with a SaaS solution where they are forwardly compatible? Why would I need to move my ERP architecture on-premise when it is far safer and more reliable being administered by professionals in the cloud? For the same reasons, why would I need to own my operating environment and the location of my data? How many security breaches of SaaS hosting companies have we heard of? Why would I want to hand over bags of cash now for licenses I may not use in the future instead of renting them and adapting subscription rates to my business. Do you know how many licenses you're going to need in 3 or 5 years? Multi-tenant SaaS is the wave of the future. While decoupling the application and OS from the infrastructure is laudable, I don't think it is a realistic choice at this time. Your article is good insofar as it goes, but it doesn’t go far enough. There is a huge distinction between single-tenant and multi-tenant hosting, and you make the distinction sound like a footnote.

Your assertion that “Multi-tenant options should be priced lower to offset the lost of flexibility” is specious. Which flexibility are you losing, the flexibility of paying for shelfware? for doing costly and disruptive upgrades? for deferring maintenance and falling behind the technology curve? for customizing the code until you own it forever? for maintaining expensive IT staff? for maintaining a global network of servers and support staff?

You attempt to justify a cloud platoform by asserting that such flexibility is desirable. Then, you ask leading questions to justify your recommendation. Customizations are a major contributor to lock-in and costly upgrades, so why not try and do them with a SaaS solution where they are forwardly compatible? Why would I need to move my ERP architecture on-premise when it is far safer and more reliable being administered by professionals in the cloud? For the same reasons, why would I need to own my operating environment and the location of my data? How many security breaches of SaaS hosting companies have we heard of? Why would I want to hand over bags of cash now for licenses I may not use in the future instead of renting them and adapting subscription rates to my business. Do you know how many licenses you’re going to need in 3 or 5 years?

Multi-tenant SaaS is the wave of the future. While decoupling the application and OS from the infrastructure is laudable, I don’t think it is a realistic choice at this time.

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