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Based on Case studies: Benefits of migrating from ERP to the Cloud

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Client, Server, Mainframe or ERP to the Cloud

Many firms experience difficulties with their legacy systems including complex ERP customizations, older client-server systems and other legacy platforms. A constant cost and concern is updating modules and software, to match changing business requirements. Moreover, re-deploying those customizations can be challenging – and very expensive!

Companies who have been running their processes on software before the digital age are faced with a competitive disadvantage. Therefore, many of them are considering migrating their ERP, or older legacy systems, to the Cloud.


Steps to Migration Success

Case studies reveal some concrete steps firms can follow in moving from Legacy Systems or ERP to the Cloud:

1. For larger corporations, you should execute the ERP-Cloud migration in a subsidiary to enable the company to control new processes and data integrity. Subsequently, the company can implement ERP cloud to the entire company after a successful implementation in the subsidiary.

2. Most companies will operate a hybrid state of “Cloud/On site-premises.” However, companies’ IT processes become far less complicated – usually by a factor of more than 50% – after implementing the hybrid model.

3. The master data must be standardized, and a sound data governance policy must be established as you migrate the ERP, or your legacy systems [or parts of them], to the Cloud.

4. Successful migrations identify processes that cannot be fragmented or broken especially when implementing a hybrid Cloud model. For instance, order-to-cash process should not be partly supported by the on-premises software and in the cloud.

5. Successful and user friendly cloud migrations ensure that the data that is well-‘scrubbed’, possesses integrity and aligns with the Cloud service as well as the general Business requirements.


How Migrating ERP to the Cloud Transformed Businesses – Results

Companies that have adopted Cloud-based ERP see results. Firms with successful ERP migrations come from every industry, both public and private.

ERP to the Cloud affords these firms the opportunity to integrate multiple separate business entities that used to operate independently and which used to have silos of separate IT infrastructures and systems. In other words, migration of ERP to the Cloud allows a rapid integration of systems and business processes.


Greater Responsiveness and Lower Cost

In addition to agility or responsiveness which is a fundamental reason for moving the existing systems to the cloud, the maintenance cost of older hardware or buying new hardware compared to using a Hybrid – Cloud platform is another major factor. Therefore, businesses can move from capital expenditure to less costly and more variable operating cost structures.

It is a known fact that legacy systems are expensive to maintain. However, businesses can cut down on these expenses by implementing Cloud-based infrastructure and services, and reduce internal IT staff.

Furthermore, companies can concentrate on their in-house IT teams to speed up their response to competitive pressure and create innovation, rather than bothering about if their ERP systems can handle new or evolving products and services. Consequently, the in-house IT team can improve their efficiency without any hassles.


Benefits of the SaaS and Cloud Model

Companies whose legacy platforms have been moved to the SaaS or Cloud platforms, see significant bottom line benefits. SaaS/Cloud ERP models including:

  1. Substantial cost reductions in IT budgets.
  2. Redeployed and more business-focused staff.
  3. Dedicated and updated, Cloud-security models, ensuring that data is safe, redundant, replicated and available.
  4. More stability and functionality in all their operations.
  5. Experienced and proficient experts manage their systems on their behalf.
  6. Redundancy, availability, reliability improvements.

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