QAD : SaaS ERP – the Case for Moving to the Cloud

There are a lot of products, services and expertise that I'd rather pay for by the hour or rent. That way I can use as needed rather than keeping all that inventory of tools and ability at the ready. When I need an electrician, I rent one. When I need a plumber, I rent one. When I need someone to check out my roof, I rent them. When I want a good book, I visit our local library and rent the book.

Would you want to learn enough about home electrical wiring so that you could do your own? Would you want to learn to sweat copper pipes so that you could run your own water line? Would you think it wise to spend the time and money to build and stock an entire library when borrowing is so convenient? I'm comfortable heading to the Tool Rent-All place and renting a cement mixer for $50 a day instead of buying one for $1,500. I'm good as well to rent a truck rather than buying one.

So, why not 'rent' the most up-to-date enterprise software and take advantage of all the benefits Software-as-a-Service (SaaS) has to offer?

What is SaaS ERP and How Does It Work?

SaaS ERP is a cloud-basedenterprise resource planning (ERP)system that operates on the ERP vendor's servers and is sold through subscription over the internet.

Can the same logic behind renting an electrician, plumber or roofer be applied to supporting a cloud-based ERP? Sure. Instead of building your own technical staff to support the hardware and latest technology, just borrow the expertise when you need it. The inner workings of modern systems and their support should be part of that cloud offering.

SaaS reduces the cost of keeping up-to-date with rapidly changing software, security and technologies. Think about all the new technologies that we have seen in the last few years;Data Lakes, RPA,Blockchain, Mobile Apps, Edge Computing, Additive Manufacturing, Augmented Reality,Robots/Cobots, Machine Learning,Digital Twins, Advanced Analytics,Low-Code/No-Code, IIoT, 5G, Cybersecurity - Did you get all that? Do you need them? How will you support them? What do your users need?

How much of your IT budget will you spend to find an expert in each area, and get (and keep) them trained? I work with a customer who has to find willing technical college grads interested in working with COBOL and FORTRAN and train them so that they can keep their legacy systems going. That is because those of us that used COBOL and FORTRAN in the past are retiring, and no one is learning those systems anymore. I last used FORTRAN-77 back in 1980. How would you like to work in that department? I have heard that they are hiring.

Moving to a Cloud-based ERP Model

Cloud-based ERPis similar to on premise ERP, but there are key differentiators. On premise hosting requires you to obtain your own expertise for the technology you wish to take advantage of. If you outsource the hosting, then you need a service that has the talent in-house. You will also need to think about country and industry compliance, and if your provider does not offer that service, you will need that support in-house as well.

An ERP solution that is hosted and managed in the cloud changes with the technology, and can keep you up to date without your budget incurring the costs of keeping your staff up to date. Make sure that your choice of cloud-based ERP is always available to you, your upgrades come with the new technology built-in, and 24/7 support for both the technology and the applications that use it, with better than 99.9% uptime and 24/7 monitoring.

What are some of the concerns that manufacturers have aboutmigrating to cloud applications? There are several, so let's start with:

• Who has control of my data?
• How secure will my system be from outside cyber attacks?
• How will I connect my current local applications likeMES, Time and Attendance and IIoT devices?

With the cloud, your decision will only need to be, 'What business critical applications will I need to keep under local control,' as your cloud-based ERP provider manages maintenance, security and support so your resources can be focused on growing your business.

The Rent-All place can buy the big tools that you need only once a year or so. The library will buy the new books; you can borrow them and bring them back. Your local plumber and electrician will stock the tools and parts for that occasional job that you need. Cloud-based SaaS ERP will keep up with fast moving technology and keep your ERP at the ready 24/7.

How adaptive is your company? Find out how to increase your ability to thrive during times of unprecedented change with QAD Adaptive ERP. Take the 12-questionAdaptive Manufacturing Enterprise Maturity Model Diagnostic to learn more.