Thoughts On The ERP Market As 2012 Shifts Into 2013

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).
  • ERP is starting to embed social collaboration.The initial interest ERP vendors expressed in 2011 grew stronger this year and acquisitions were one route they took to move more seriously and rapidly into social collaboration. For instance, Microsoft bought Yammer; Oracle made a string of social purchases; SAP merged its StreamWork and Jam endeavors; and Deltek made a bid to bridge home and work collaboration with its Kona software. As ERP vendors move away from a simple “Facebook for the enterprise” story, expect them to start trying to differentiate their own take on social collaboration from that of their competitors and the potential benefits that they can bring to customers.
  • The SaaS financials market is expanding. Given the success of SaaS CRM and HCM, SaaS financials seems the next area likely to resonant with a larger set of enterprise customers. While some organizations may never move their financials to SaaS, others will look to fully replace on-premises apps with SaaS or to run both deployments in a two-tier configuration with SaaS financials operating at the divisional or business unit level, and on-premises financials retained at corporate HQ. In 2012, Workday continued to expand the scope of its SaaS Financial Management offering; SAP announced Financials OnDemand, a “grown-up” version of the financials component of its midmarket SaaS apps suite Business ByDesign, positioned as suitable for consumption by larger entities; and Oracle continued to expand the scope of its SaaS and on-premises Fusion Financials.

What’s your take? Do you see these three trends catching hold in the market and what other developments will form key building blocks for the future of ERP?

Comments

ERP Flexibility on the cloud

Definitely, I would agree with these trends.
There would be an additional important point to take into account when choosing an ERP on the cloud: FLEXIBILITY. Flexibility is key to have proper ROI on ERP implementation. You must be able to really adapt the ERP you select to your real business requirements and to their changing nature over time. Otherwise, you might sink in endless costly solutions that after a while prevent you from progressing instead of the way around.
Not many cloud ERP options today provide that flexibility. I can talk about the one I know better that is Openbravo, now available on the cloud as Openbravo On Demand. Openbravo provides that flexibility thanks to
1) Dedicated instance: every customer has a dedicated instance, and within that one, all the benefits of Openbravo ERP itself, including…
2) Open Source: you can change anything you need, also on you cloud instance
3) Migration to On Premise any time you want: no locked-in
4) Full control of updates and upgrades: you are not forced to adopt them
5) Full integration with other application via standard web services provided

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Cloud ERP Strategy: Goodbye IaaS, Hello IaaS

One of the first deployment models for cloud computing was Infrastructure as a Service (IaaS). Currently, there is a price war between the major IaaS providers like AWS and Rackspace to provide the cheapest infrastructure. However, enterprise customers looking to move their ERP solutions to the cloud should focus more on Integration as a Service (IaaS). Integration, not infrastructure, will have a greater impact to TCO and ERP success. In the next sections we will briefly compare the influences that infrastructure and integration have on an enterprise solution like ERP.

http://gbeaubouef.wordpress.com/2013/01/03/cloud-erp-strategy-iaas/

Small and Medium businesses

Small and Medium businesses are more diverse and competitve than ever. ERP provides the tools to get to the next level.

Mobile ERP Apps gaining Firm Grip

The demand for seamless access to relevant ERP data for the increasingly mobile enterprise workforce is increasing, especially with the BYOD trend. The challenge is to be able to effectively provide mobile access to enterprise workflow system in an effective manner while ensuring synchronicity, security and simplicity.

The benefits that these next generation Apps can bring are obvious in areas such as field sales, warehouse management, supply chain and remote medical systems.

I believe this is the time when Traditional ERP vendors, cloud brokers, connectors eco system - are all working to bring the Business Workflow into your hand on the move.

Why do you think the demand

Why do you think the demand is increasing?