ERP in the Cloud: It's the Right Move
Author:Cloud Solutions & Services
Cloud enables a new operating model for IT— one that is more agile, flexible and scalable. What is driving cloud growth? Business demands for faster innovation, rapid response to market changes, and a move from heavy capital to lighter0weight variable-cost operating expense models
In a traditional operating model, IT struggles to meet business demands. Between 70% and 80% of IT budgets are spent "keeping the lights on," constraining investment for new initiatives to grow revenue and compete more effectively. Application release cycles are not fast enough. Core ERP applications are aging; maintenance is high.
Business requirements driving cloud adoption:
- Accelerate time to develop, implement and modify applications
- Respond more quickly to business requirements
- Eliminate the barriers to experimentation
- Remove capital investment hurdles for new initiatives requiring IT support
- Improve ability to respond to changing demand for IT resources
- Reduce waste of idle resources
- Eliminate cost and business risk of inaccurately forecasting demand
- Respond to the needs of mobile users
Cloud-empowered enterprises reduce their spend on infrastructure and redirect savings to upgrading and developing applications.
"We've gone from spending 50% of our operating budget on infrastructure to just 26%. A nearly 75% investment in apps and information rather than infrastructure — that's huge."
- Michael Harte, CIO of CBA, Wall Street Journal
SAP CEO Bill McDermott on why SAP is moving to cloud:
"Because it offers instant consumption, instant innovation, and helps companies grow."