Enterprise Resource Planning or Cloud ERP is the next big thing in the world of cloud computing and competitors in this field are aware of this. During the revenue presentation of NetSuite at the end of Q2, the figures were the first thing that indicated that high moving trend of the cloud ERP space.
The growth of Cloud ERP
NetSuite figures that Ben Kepes showcased on the Cloud Ave blog post imply an important trend related to ERP. Through support revenues and subscription, NetSuite netted $61 million, which is an up by 27 percent of the 2011 Q2, and its operational cash flow moved by 80 percent year after year to $15.2 million. Kepes added that the changes in these figures in the uptrend show that there is something interesting going on in the Cloud ERP space.
He continued, saying enterprise software isn’t that interesting, but the sector continually experience growth year after year, and the reason is that it can be directly monetized – the Cloud ERP is a service customers are willing to pay for, after all.In addition, it is cost saving, efficient in creating cloud properties, enhances productivity; it shouldn’t be a surprise that cloud ERP is becoming the leader in many providers of enterprise software.
Other researches have also confirmed the increasing significance of cloud-based ERP not only on the company level but on the level of governments and governmental organizations as well. The reason is that cloud has a great capacity of merging systems and processes on a single infrastructure thus saving costs and enhancing capacities.
It is important to note, however, that ERP is not a new concept but it’s the field where major changes are occuring. The old ERP came up during the time things were hard – processing speed, disk storage, bandwidth, CPU availability etc. For the modern needs, new solutions will have to concentrate on inventory, action etc. of external bodies such as governments, suppliers, customers etc., instead of focusing on transactions only.
Even though much cloud ERP has been available in hybrid or hosted mode for few years, in the next twelve to eighteen months there could be a spark up of innovation in the sector. Its implementation might not go smoothly in all the organizations, but cloud ERP is definitively something that organizations should focus at in future.