ERP on cloud getting closer to reality
ERP may be moving to cloud, but multi-tenancy still sounds futuristic. The compromise could well make cloud-based ERP more appealing for customers. ERP becomes easier to consume as cloud eliminates the need for datacenters and large teams. More importantly, cloud disrupts the ERP cost structure.
’Send payroll processing to cloud and keep all mission
critical applications on premise.’ This line of thought,
popular with packaged software vendors, is coming in for a slow
Even ERP vendors, arguably the most sticky on-premise firms, have
begun to move towards the cloud. They are under pressure to shed
fat and become nimble, and cloud offers them a way to
Starting from May
2010 Lawson Enterprise Management Systems and Lawson
Talent Management suite will be available as solutions hosted by
Amazon Elastic Compute Cloud (Amazon EC2) infrastructure.
Lawson software says its External Cloud Services are targeted at
midsize companies seeking affordable and agile deployment of
enterprise software. What makes this possible, according to Lawson,
is Amazon EC2’s secure, reliable, massive yet affordable
Lawson External Cloud Services can automate the provisioning of
additional software instances. A subscription pricing option is
also available for customers who choose to run Lawson External
Cloud Services offerings on AWS.
Jeff Comport, Lawson senior vice president of product
management, says “This should be great news for CFOs and CIOs who
worry about lengthy and complex on-premise installations, the cost
and inefficiency of their data centers, the best way to allocate IT
staff, and the complexity and difficulty of maintaining software
versions and upgrades.”
A few days ahead of Lawson’s announcement, open source ERP
vendor Compiere put
its on-premise enterprise software on Amazon’s EC2. It assured
customers, who are wary of running ERP from cloud, that they would
not be sharing a hosted instance and database with other customers,
but get their own private and secure instance of software. ERP may
be moving to cloud, but multi-tenancy still sounds futuristic.
The compromise could well make cloud-based ERP more
appealing for customers. ERP becomes easier to consume as cloud
eliminates the need for datacenters and large teams.
Analysts have voted in favour of running ERP from cloud.
Commenting on Compiere-Amazon pairing AMR Research analyst
Richardson says ‘…the two are completely changing the
cost structure of deploying ERP.’
An enterprise can subscribe to Compiere Cloud Edition for $795
per month and rent Amazon capacity for as little as $2,000 per
year. As he points out, this translates into about $10,000 for 10
users and $80,000 for 100 users.