Larger firms need to customize SaaS

Customized cloud solutions are usually necessary in order to produce software which matches the specific features and goals of the business.  Many ERP-Cloud vendors want clients to adopt the opposite proposition, namely that the business must conform to the Cloud application or Cloud ERP system.  Examples include Oracle or Salesforce.  Remapping your business processes to fit a vendor’s application is a good recipe for higher costs, budget overruns and lack of end user interest.

 

In fact, most firms – 85% of more – beyond the SME level, need to customize their cloud systems at the application level.  This is especially true for complex business applications, ERP, or older client server systems being migrated to the Cloud:

cloud customization

 

ERP customisation levels in the USA Source: http://ezyprocess.com/

 

Comparison criteria

When moving a process to the Cloud we can ask the following:

  • Is the business process involved, a standard or specific-to-our-company process ?
  • What pain am I trying to resolve ?
  • What positive outcomes for the business do I expect to achieve ?
  • Are the operations which require automation, standard or specific to this particular business?
  • What is the expected or given budget level [capital, operational] ?
  • What is an acceptable implementation deadline?
  • Who is going to maintain the system after implementation?
  • What security level is required?

 

Taking the above-mentioned criteria into account, a comparative analysis can be conducted and represented in the form of a table (see below).

 

Criteria

Customised solutions

Cookie Cutter, Template, Standard

Type of approachIndividualGeneral
Adaptability for a particular type of businessFull adaptability, the software is designed for a particular company considering its specifics and goalsThe solution is general, the business processes are meant to be adjusted to the existing software
CostsLower in the Long Term since the software matches and supports your processesHigher in the Long Term, because your business must fit the software
Time to DeployLong, from several monthsShorter
Source codeThe source code is created according to the needs of a specific company and is openThe source is usually closed and created by the developers
GuaranteesThe vendor is responsible for the product’s quality, all the guarantees can be described in a contractThe closed source and the provision of software as a service do not ensure any guarantees or security concerning possible leaks
Chance of unexpected errorsLowHigh
Cloud typeUsually private, and a hybrid systemMainly public
System maintenanceThe firm can independently maintain the system by hiring expertsClosed, a black box
Security levelHighLow
ScalabilityUnrestrictedRestricted

 

Based on the results of this comparative analysis, it can be deduced that each option might be suitable for a particular type of business. For example, small and medium-sized enterprises can undoubtedly benefit from the template-closed cloud systems, since they are inexpensive and allow for the rapid automation of crucial work sectors. However, for a larger-scale company which is developing quickly and aggregates a lot of different functions, it is reasonable to opt for a system which is able to meet all the business’s demands.

 

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