The so-called death of ERP

The so-called death of ERP

There has been a lot of recent chatter online about the death of ERP, usually labeling cloud computing as the culprit that is bringing about its demise.  The fact is that this is greatly exaggerated and essentially not true.

Brett Beaubouef’s blog, ERP the Right Way, published an article that offers a good explanation about the changes the cloud has brought and the real potential of hosted ERP.

The cloud doesn’t affect the need for ERP because businesses will always need management software in order to run at full potential.  The cloud just makes these solutions more accessible.

There is no question that the ERP cloud market is well on its way toward the majority market, but don’t expect to see all the Fortune 500’s make a full switch from on-premise to the cloud anytime soon.  The truth is big-business is more likely to adopt a hybrid model.

Where the most significant change can be seen is in the SMB market.  This is where the flexibility offered by cloud ERP makes the most sense especially considering the large price tag of on-premise solutions.

So in short, the cloud hasn’t sealed the coffin of ERP solutions, but it has greatly changed the market and on-premise ERP may not survive the change in the long run.

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