If you ask IT managers and CIOs about ERP system and ERP software applications you will find that a hot topic of conversation is cloud computing or virtualization. Most every company in North America has implemented or is thinking about implementing at least one type of web-based, software as a service (SaaS) application in their organization. Many companies already have virtualized servers and storage and are now considering outsourcing desktops.
For a majority of companies the process of taking on web-based, hosted ERP software, ERP modules, hardware, storage and other tasks start with less critical, less transaction intense software applications and less storage intensive processes. Most of these companies have not dived into the meatier applications such as ERP systems or Exchange as well as critical production database servers. The reason for the hesitation of outsourcing these mission critical applications and storage functions are simply due to risk exposure. Company managers are not willing to put business critical ERP applications in a virtual environment that is exposed to a single point of failure.
However, the alternative of outsourcing mission critical ERP software systems as well as critical database servers are becoming more and more attractive due to the potential cost savings of outsourcing ERP software services and storage services. One critical point to avoid is server sprawl. Don’t fall into the trap of replacing your internal server sprawl issues with an outsources, virtual server sprawl scenario. The key objective to virtualizing your tasks is to reduce costs so don’t sabotage this key objective by throwing internal inefficiencies “over the wall”.
If you are in the process of virutualizing whether it be servers, software of even ERP system applications and ERP modules, make sure you plan your plan of attack. Your business will most likely require large physical servers to host your consolidated server requirements and you need to make sure you will have the capacity to meet your goals. It is very likely that your storage needs will increase when outsourcing the data stacks and your applications.
There have been quite a few innovations in ERP software systems and ERP delivery vehicles over the last decade, particularly with web-based ERP software applications that are creating an new, affordable alternative for companies, particularly the SMB market that continues to innovate and develop robust solutions with compelling advantages over in house, on premise solutions. It is clear that this trend will continue and virtualization and outsourcing of non-core businesses processes and systems will also increase. Solutions that enable businesses to focus on their core strengths, services and products makes a lot of sense.
Cloud ERP System, ERP Modules and ERP Software Solutions
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