Enterprise Resource Planning in the Cloud: Addressing The Cons

Enterprise Resource Planning (ERP) in the Cloud is creating a lot of buzz among industry professionals – for both its ability to reduce costs and capability for rapid implementation.

But among the industry excitement lie some legitimate industry concerns – particularly among larger companies.

Eric Kimberling of Panorama Consulting surfaced the two largest concerns in a recent blog post: flexibility and security.  And while many small and mid-sized organizations are will to weigh these legitimate risks, some larger corporations remain on the fence.  Fortunately for these larger corporations, these risks are just as manageable as they are legitimate.

In regards to flexibility, while this is a valid concern, leading ERP software (like Microsoft Dynamics) is designed from the ground-up to provide the ability to cope with ever-changing markets.

For example, Microsoft Dynamics ERP is designed to encode knowledge in models to achieve expressiveness, conciseness, consistency, ease of understanding and ease of exchange. In addition, all third-party software, including modeling tools, are embedded in such a way that they can be exchanged. These features allow for flexibility even among large businesses in complex industries.

Security is perhaps the most common concern with the cloud. But even in surfacing this concern, Kimberling notes that it can be alleviated with the right Service Level Agreement – which any reputable vendor will be more than happy to accommodate.  Additionally, Microsoft Dynamics ERP provides – as one of its hallmarks – data confidentiality provisions according to CIA principles:

- Confidentiality: preventing disclosure to unauthorized individuals or systems.
- Integrity: data confidentiality cannot be modified without detection.
- Availability: systems always available, thus preventing service disruptions.

ERP in the Cloud is and will continue to be a buzzing topic among industry professionals.  And as with any buzzworthy topic, the pros and cons must be weighed and scrutinized to ensure it is the right solution for your organization.  I would be happy to help you weigh these pros and cons and address any additional concerns you have.  Please feel free to contact me through the STAEDEAN website.

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