A new report from Forrester has shown that 2013 saw a large increase in the number of businesses signing up for cloud enterprise resource planning (ERP). As many companies reassess their IT architecture and strategy, a lot of executives are realizing that cloud computing offers many advantages. With older legacy ERP systems needing to be overhauled, a growing number of firms are choosing to move into the cloud.
In the latest data from Forrester, it was shown that cloud ERP use doubled last year, with 24% of companies revealing that they planned to replace, or had already replaced, existing ERP systems with cloud solutions. A lot of businesses are also adopting a two-tier approach, keeping their old systems but bolstering networks with cloud components via software-as-as-service (SaaS). This area of the market more than doubled during 2013, with 41% of companies taking this route; this means that 65% of enterprises have taken cloud computing, in some form or another, into their business. The perception of cloud computing has changed significantly in only a year, with participant responses favouring cloud solutions having grown by two-thirds between 2012 and 2013.
The report, Application Adoption Trends: The Rise of SaaS, also highlighted that the large uptake of core enterprise applications is relatively sudden. In 2012, uptake across categories such as supply chain management, accounting and enterprise asset management had been small, recording single digits in many cases. The latest acceleration suggests that the adoption of SaaS solutions has taken a hockey-stick curve approach, which is likely to continue gaining at a fast rate. SaaS also makes up the majority of enterprise spending in the cloud, with 2013 showing that $36bn (62%) of the total of $58bn was spent in this area.
Another surprising find is that companies are increasingly factoring cost as a secondary advantage. When Paul Hamerman, the author of the report, asked companies why they were using cloud ERP, he found that the highest priority was placed upon agility and speed of SaaS adoption. Though cost remained an important factor, other aspects preceded it. As a result, Mr Hamerman suggested that companies need to change their perceptions of what is classed as a legacy solution and that executives need to keep their eyes open for new and improved SaaS options, replacing older ERP as part of a rotating process.
Overall, it seems that SaaS shows no signs of being a flash in the pan; in fact, it is becoming one of the most widely-utilised business tools. Going forwards, its use it set to grow considerably.
Written by Montash.
Montash is a multi-award winning, global IT recruitment firm. Specialising in permanent and contract positions across mid-senior appointments which cover a wide range of industry sectors and IT functions, including:
ERP, BI & Data, Information Security, IT Architecture & Strategy, Scientific Technologies, Demand IT and Business Engagement, Digital and E-commerce, Infrastructure and Service Delivery, Project and Programme Delivery.
With offices based in London, Montash has completed assignments in over 30 countries and has appointed technical professionals from board level to senior and mid-management in permanent and contract roles.
For more information please visit www.montash.com