What to Look for in Your Next Manufacturing ERPThu Nguyen
Your next ERP will be the control panel of your manufacturing business for the next decade. The features it provides could make or break the productivity of your entire team.
But the way you deploy this platform could have even greater ramifications.
Whereas cloud ERP solutions were considered a rarity just 10 years ago, they’re now commonplace. Many manufacturing enterprises are singing the praises of their cloud ERP systems. But that doesn’t mean all cloud platforms are created equal—or that once you’ve decided to go cloud, your decision process has ended.
The truth is, “cloud ERP” is a broad category that encompasses several different deployment options.
Your Options for ERP Deployment
It wasn’t that long ago that the only deployment model for ERP was a licensed, on-premise solution. Your company would purchase software licenses, install the software in your data center or server room, and extend access to your users.
Today, even if you’re set on a cloud solution, you’ll have several more decisions to make:
- Software as a service (SaaS). SaaS ERP solutions are hosted elsewhere—rather than on your company’s servers—and accessible to you through a browser.
- Hosted solution managed by your ERP vendor. In this deployment model, you buy licenses as you would with an on-premise solution. The difference is that you’ll pay a fee for your vendor to manage and maintain the software on their own hardware.
- Hosted by a third party. The main difference between this model and the previous one is that someone other than your vendor will manage the hardware, hosting, and maintenance.
- Hybrid. The hybrid model gives you the flexibility to install some elements of your solution on-premises while letting a third-party host the rest.
Which of these options are cloud deployment options? All of them. “Cloud ERP” refers to any solution that your users access through a browser. If you install the software on your own servers, it’s called a private cloud deployment. If the software is installed outside your premises, it’s called a public cloud deployment.
Manufacturers Are Embracing Cloud ERP Deployments
The many types of cloud ERP deployments available may seem overwhelming at first. But manufacturers are navigating their options—and choosing the cloud in droves.
The Mint Jutras 2019 Enterprise Solution Study asked companies which deployment model they’re using. Just 23 percent responded that they’re using traditional vendor-hosted deployments. By contrast, 60 percent reported that they’re using SaaS or vendor-hosted deployments.
The cloud will only get more crowded in the years to come. The same study revealed that 28 percent of participants plan to move their ERP deployments to SaaS within the next two years. Another 23 percent plan to do so “eventually.”
Source: Industry week.