Hybrid Cloud Adoption Set To Rise In 2015

The year 2015 has just started; yet business analysts have already confirmed that it will shape the future of ERP. A series of ERP trends that have gathered momentum during last year promise to emerge even stronger in 2015. Organizations adopting hybrid cloud-based ERP services, companies replacing private with public cloud deployment models, and ERP vendors offering advanced security solutions are just a few of the trends that will impact businesses in 2015.

Hybrid cloud adoption set to rise

Spurred in large part by the interest of big companies, the entire cloud market is expected to grow significantly this year. Although each cloud deployment model has its own advantages and disadvantages, a hybrid solution provides the infrastructure benefits of the public cloud without sacrificing existing investments in on-premise applications. Hybrid cloud-based ERP systems allow enterprises to keep important business data behind “the scene”, while providing easy access to regular information via mobile applications.

Thanks to new developments, such as Dynamics AX 2012 R3, organizations can get ERP solutions that work both on premise and in cloud environments. Furthermore, the largest information technology companies are currently investing in new hybrid cloud solutions to create more cohesive, integrated ERP environments.

Sporadic adoption of private cloud models 

Though access to critical business data is more secure via private clouds, the main disadvantage of private cloud computing relates to huge implementation and operating costs. Competitors opting for more affordable cloud-based ERP solutions will put you at a great disadvantage, and that's because you can no longer offer competitive pricing.

According to Forrester Research, on-premise, remotely managed private clouds are doomed to extinction. While a private cloud ERP solution differs from other software options especially with regard to security and reliability, it usually brings about more problems than benefits, offering no lasting value.

Cloud security will affect cloud adoption

In 2014, a number of cloud security-related headlines have shaken enterprise confidence in cloud deployment models. Cyber attacks along with NSA surveillance have driven urgent security discussions, especially across cloud-based ERP environments.

As most enterprises are currently looking for complex, agile, and flexible security solutions, ERP developers and vendors will focus on endpoint security, trying to offer more comprehensive Security-as-a-Service solutions. However, analysts confirm that a breach in the cloud is inevitable and will occur especially due to poor management and lack of training. Although security fears won’t go away too soon, cloud developers are expected to come up with better security answers in 2015.

Cloud-native applications will rule the ERP market

Certain technology trends, such as the Internet of Things (IoT), Big Data, mobility, and Business Intelligence advancements, which are expected to grow not only in importance, but also in demand during 2015, will create more complex problems, which can only be solved with cloud-native applications. Specifically designed to help users fully exploit cloud-based ERP developments, these applications are renowned for their flexibility, allowing users to scale their ERP solutions up and down to improve responsiveness to changing computational demands.  

With increasing numbers of companies considering globalization, ERP developers will put special emphasis on comprehensive global functionality, including language, currency, and tax law support, which is another trend that will dominate the ERP sector in 2015.

Now, the good news is that you’ll able to choose a cloud-based ERP solution based on the level of accessibility, flexibility, scalability, and security your company needs in 2015. Since the cloud computing landscape will continue to change rapidly, making the effort to adapt your technology agenda just as rapidly is well worth it, considering the benefits.