Cloud-Hosting Preferences for Enterprise Resource Planning (ERP) Software

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Respondents were asked open-ended questions about what they saw as the advantages and disadvantages of SaaS.

  • Cost topped the list of advantages, with a minority of respondents specifying that capital cost would be lower.
  • Cost was also mentioned frequently by respondents as a disadvantage of SaaS. While it is true that initial cost for an SaaS project is typically lower, the software license is only being rented and therefore it becomes more rather than less expensive after a period of years.
  • Automated and centralized upgrades were also seen as an advantage for SaaS.
  • Security and control tied among the most frequently-cited disadvantages. Cost was also a frequently-used term in these responses, as was ownership. The lack of ownership of the software contributes directly to the cost, so these issues may be seen as interdependent.

In early 2013, IFS North America and Advantage Business Media conducted a study among executives with industrial companies to determine how respondents involved with enterprise resource planning (ERP) and other enterprise software perceived various methods of software provisioning, including on-premise, hosted, software as a service (SaaS) and private cloud.

Historically, ERP and other enterprise software was housed on servers on the premises of a business. The increasing availability of high bandwidth LAN, WAN, dark fiber and public Internet connections, however, has broken down the geographic barriers that made the on-premise delivery model the only option.

Another technological change that is affecting how enterprise software is provisioned is the availability of clustered server technology delivering variable capacity that can be sold on a pay-as-you-go basis.

Prior to this, servers ran applications in a linear design without extensive redundancy or scalability. Scalable and easily partitioned server technology is available now that can allow organizations with centralized computing resources to sell computing resources over the public Internet as a service. The infrastructure itself can be purchased as infrastructure as a service (IaaS), or it can be paired with an operating environment or other facilitating technologies as platform as a service (PaaS). Either way, an end user can be relieved from responsibility to purchase and maintain hardware.

 

Related Topics : Vulnerabilities and Patches, Resellers, Broadcom, Broadband Services, Supercomputing

 
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