Why Your Peers are Counting on Cloud and Industry Specialization for Organizational Success

By: Avaap
Date: October 05, 2015

Growth is the game plan for nearly every organization. Whether that’s through product development, market expansion or opening new facilities, C-suite leaders recognize technology as an enabler to competitive advantage and why many are preparing to address cloud.

Cloud brings benefits and bottom-line considerations that warrant attention.  In a recent survey by 451 Research, more than half of the respondents cited improving technology quality, helping grow the business and adding capabilities that couldn’t be built internally as the main reasons for moving to the cloud.

With its predictable cost structure and lower TCO, organizations can simplify their technology, protect capital, and reap the rewards of the most modern software available. Still not convinced? Consider these points:

Cloud helps organizations effectively keep pace with change. Aberdeen reports that the average ERP in mid-market organizations is more than seven years old.  In the last decade, IT has changed, technology has advanced and as the organization grows, business processes change.

In many cases, changing business requirements outpace IT resources, making it difficult to keep up with what’s required to manage and support on-premise hardware, software, and networking infrastructure. Cloud alleviates ongoing system administration and time- and resource-draining maintenance that prevents IT staff from focusing on higher-value company initiatives. Bonus:  updates happen in real time, ensuring access to the most current software.

Cloud can address the IT talent shortage. There’s no end in sight for the IT talent shortage and its putting some companies at a competitive disadvantage. A 2014 survey by the Health Information management and Systems Society (HIMSS) found that one-third of healthcare managers had to postpone or scale back an IT project because of inadequate staffing.

Additionally, the number of individuals entering the workforce with specialized skills required for ERP implementation and maintenance are fewer. And, as ERP applications mature, it is increasingly difficult to source, recruit and retain the talent needed for enterprise application management.

Cloud puts the onus on the vendor for system administration and management, freeing internal resources to focus on core competencies – not monotonous IT tasks.

Cloud shifts the technology investment from CAPEX to OPEX.  Cloud’s SaaS-based pay-by-consumption model eliminates expensive infrastructure, upgrades and software license costs while reducing expenses for IT resources. Cloud offers flexibility to efficiently scale up or down with business demand and makes for more predictable spending.

Software specialized for industry allows for swift implementation, built-in best-practices and ongoing updates, upgrades and IT operations service. Cloud computing is a significant advancement, but not all solutions are equal. In the ERP market some solutions are client-server architecture rewritten for the cloud. Avaap specializes in Infor, which differentiates by delivering enterprise software solutions architected for the cloud with a focus on micro-vertical specialization.

For example, while apparel and electronic manufacturers are both in the retail industry, their processes differ.  Infor includes that functionality as standard in the software, alleviating the time and cost of additional implementation hours to build a customized suite. With industry-specific applications for finance, human capital management, supply chain and customer relationship management, implementations are faster, maintenance is reduced, and total cost of ownership is lower.

Security provisions and safeguards are stronger than those on premise. A top-tier cloud host with a global footprint can build far more extensive redundancy, scalability, reliability, and external protection than any individual organization can. Additionally, a leading infrastructure vendor can distribute images of any application instance among many geographically separate centers to ensure continuous operation.

Organizations stand a lot to gain from embracing cloud – from lower CAPEX to greater flexibility, stronger security and reduced time to market. If greater agility, management, cost savings, and resiliency are part of your strategic growth plan, look to the cloud and software that meets the specific requirements of your industry.

What project is on your upcoming agenda? Let’s get a conversation going. Contact Avaap!

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