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ERP Software Weather Report: Increasingly Cloudy

Date posted: January 28, 2015

A recent article on TechTarget confirms what we all expected: cloud computing advantages accelerated during the past year:

Cloud computing advantages have been a focus for at least five years, but in 2014 more and more companies stopped using software on-premises and shifted to software-as-a-service (SaaS). … Companies discovered cloud computing advantages in managing and improving business processes, customer relations, and employees.

According to Paul Hamerman, vice president and principal analyst at Forrester Research, this adoption is broader-based than previously, with growth in adoption of software categories that had been laggards in the past. “The adoption levels are still relatively low in that the majority of the software still in place is the traditional licensed applications,” he says. “It’s going to take some time before the majority of it migrates to the cloud.” Implicit in this statement: the majority of it will migrate to the cloud, but currently there’s lots of room for growth.

One segment poised for this migration: enterprise resource planning (ERP). In a recent Forbes article, Louis Columbus points to Gartner’s “ERP Market Share Update” as showing “the future of cloud ERP is now.”