What are the perceived challenges of ERP in the cloud?

By: Dror Orbach

In the following video, COO at Illumiti Dror Orbach discusses the perceived challenges of ERP in the cloud.


Video Transcript - Perceived Challenges of ERP in the Cloud

One of the benefits of ERP in the cloud is your ability to focus more on core business and less on managing your IT environment. The flip side of that coin is that you are entrusting the management of your IT environment to a third-party cloud provider. You need to be able to trust how they will manage that. You become dependent on them and the level of dependency that you have, relates closely to the flavor of cloud service you're using.

If you are using a cloud service where you are subscribing to an ERP application, you are then highly dependent on the cloud provider for various aspects of your user experience, for example:

  • Performance of the system
  • Its availability
  • How they will prioritize functional enhancements requests

All of these are things that the cloud service provider will determine based on their overall client base as opposed to determining that purely on the basis of your own needs, which is something you could do in an on premise environment.

Another area of challenge which is certainly a perceived challenge with cloud is security. In my opinion, that's a little bit of a red herring for mid-market companies. Major ERP in the cloud providers like SAP has a lot at stake if it's going to allow its customer information to be exposed and if it's going to reduce security issue. A company  that provides the cloud service is likely to have more investment and a better security apparatus protecting customer information then any mid-market company is likely to have on their own.

Related Topics

What is Cloud ERP?

Cloud ERP Considerations

Is Cloud ERP Right for You?