It’s the time of year when business apps observers adopt a Janus stance toward market trends. Like the ancient Roman god of beginnings and transitions, analysts look back at the recent past while also peering ahead into the future. Here’s my contribution to that ongoing debate highlighting three areas of enterprise resource planning (ERP) I thought of particular interest in 2012 and in the years ahead. Customers are set to benefit as more ERP deployment options and additional SaaS financials apps become available.
ERP vendors are going all-in with the cloud. Many ERP vendors debuted product or fleshed out their strategies for software-as-a-service (SaaS) ERP in 2012, and further developments are set for 2013. While the focus this year has been on SaaS ERP — and often how a SaaS offering can live in hybrid harmony with its older sibling, on-premises ERP — some vendors also revealed their platform-as-a-service (PaaS) and infrastructure-as-a-service (IaaS) strategies. When it comes to PaaS, ERP vendors are opening up their own development platform and/or partnering with vendors like Amazon.com and Microsoft. Cloud-focused acquisitions also continued in 2012, notably SAP’s purchase of procurement rival Ariba to help fill out the suppliers pillar of its four-pillar app cloud — the other three pillars being people (HR), money (financials), and customers (CRM).
The CRM solution landscape has experienced considerable change, including significant vendor consolidation and a rapid rise in the popularity SaaS solutions — often referred to as "CRM in the cloud." Organizations adopt SaaS CRM solutions because of low upfront costs, good usability, proven scalability, better flexibility, and faster time-to-value compared with traditional on-premises applications. Forrester surveys indicate that nearly 70% of organizations are interested in, or are currently using, SaaS solutions for horizontal business processes such as CRM and HR.
But clients tell me they cannot capture the promised benefits if they do not have certain prerequisites within their own skill sets, such as the right developer talent and governance model to work in an agile, iterative approach that leading organizations use to be successful. This is not your father’s CRM anymore, so don’t make these mistakes:
As the end of 2012 approaches there is one clear takeaway about the cloud computing market — enterprise use has arrived. Cloud use is no longer solely hiding in the shadows, IT departments are no longer denying it’s happening in their company, and legitimate budgeting around cloud is now taking place. According to the latest Forrsights surveys nearly half of all enterprises in North America and Europe will set aside budget for private cloud investments in 2013 and nearly as many software development managers are planning to deploy applications to the cloud.
So what does that mean for the coming year? In short, cloud use in 2013 will get real. We can stop speculating, hopefully stop cloudwashing, and get down to the real business of incorporating cloud services and platforms into our formal IT portfolios. As we get real about cloud, we will institute some substantial changes in our cultures and approaches to cloud investments. We asked all the contributors to the Forrester cloud playbook to weigh in with their cloud predictions for the coming year, then voted for the top ten. Here is what we expect to happen when enterprise gets real about cloud in 2013: