And if this is the case, said HansaWorld SA director and product manager Alan Sher, customers should be wary.
"Traditional ERP is infamous for at least two things: enormous cost, and enormously long deployment timeframes. That's because it was built for an on-premises model which required extensive investment in hardware, consulting expertise and implementation skills to get it up and running," said Sher.
On the other hand, those systems that were designed from the start for the cloud are faster to deploy and far less expensive to procure.
Continuing, he said that an accelerating move to the cloud can be anticipated as more customers appreciate not only the value of reduced cost solutions, but also the operational benefits of information that is made available anywhere on any device. "More people are realising that cloud solutions can be trusted, so long as the correct security measures are in place. Businesses are rapidly becoming more aware of their options with mobility and cloud services," Sher confirmed.
As a result, vendors have little choice but to offer their software in the cloud. "For some, that means rewriting the entire architecture of the system - and if they can't adapt they will die."
Which leads Sher to perhaps the most important point of all: systems designed natively for the cloud actually work in the cloud.
"Transposing an on-site model to the cloud isn't a simple matter. Among the factors critical for success, especially in areas where infrastructure is poor or lacking like many areas in Africa, is the ability to work with very low bandwidth," he said.
And cloud ERP solutions should do that without compromising the user experience, while also operating across notebooks, smartphones or tablets. "The really good ones, of course, provide the same graphical user interface, and not a web interface, regardless of the device. That contributes to a consistent user experience," added Sher.
Pointing out that solutions offered over the cloud can be hosted anywhere in the world, there is one further essential feature that must be offered by vendors in South Africa - and that's data sovereignty. "The introduction into law of the Protection of Personal Information Act puts a requirement on all companies to ensure historical customer information and records are kept safe and secure. That means you want the system hosted in this country and not just anywhere in the world," he explained.
Offering some advice in summary, Sher said that cloud ERP means that more businesses than ever before can afford to access software that was once the preserve of big companies. "However, big companies with big budgets have had big problems with ERP in the past. There are no shortages of examples of major project failures and there are lessons in that: when choosing a cloud ERP solution, make sure it is actually designed for the cloud. Look for examples, proofs of concept, and understand where the data will reside. And make sure that if you value mobility, the solution not only works on low-bandwidth connections, but also provides you the freedom to use any device you choose."
