Top Performers Know It’s Time to Migrate to Cloud Enterprise Resource Planning

There has been a gradual shift from on-premise Enterprise Resource Planning (ERP) solutions being the most common ERP deployment, to the rise and growing popularity of Cloud ERP deployments.

For the first time in ERP history, ‘a higher percentage of organizations are considering a cloud solution for their next ERP deployment in comparison to the on-premise model.

Top Reasons why Leading Organizations Migrate to the Cloud
Since 2009, there’s been a 30% decrease in organizations reporting even being willing to consider an on-premise solution, and at the same time, from 2009 to 2016, the percentage of organizations that would consider a cloud solution for ERP has increased from 23% to 59%.

So why are organizations suddenly so interested in the cloud?

The top reasons why companies switched to cloud include:

• Ability to standardize onto a single system across multiple entities – 35%
• Need for collaboration amongst increasing number of locations – 29%
• Need an application that can scale with the business – 27%
• Need to reduce IT costs – 23%
• Cost of capital funding is too high – 19%
• Data technology infrastructure limiting the organizations' ability to respond to business more quickly – 17%

When looking at all the reasons collectively there are three common threads: growth, the ability to operate globally with ease, and cost.

As organizations get larger and expand into multiple entities, especially when there are global locations, the need for a unified system that can centralize data and communications becomes increasingly valuable.

Scaling an on-premise solution to meet the complex requirements of a growing (and possibly global) organization can become both difficult and costly, compared to working with cloud solutions which directly resolve the pain points outlined above.

As described in this report: ‘It’s time to migrate to cloud ERP. If your organization waits, it will be unprepared for the new business environment.’