Why Hybrid Cloud ERP is becoming the new norm

Hybrid Cloud ERP

We’ve written a lot about the move to Cloud ERP and the tug of war that seems to be happening between vendors and customers, especially over controversial de-support dates from SAP and bullish sales tactics from Oracle – all designed to convince you to sign up to their own version of Cloud ERP.

TechTarget has covered this issue recently, citing analysts from 451 Research and IDC who say that vendor claims of Cloud’s success is overstated:

  • “Organizations really aren’t all that fired up about migrating core back-end apps to the cloud,” said Melanie Posey, an analyst at 451 Research. It’s the time and expense involved that stops them. The number of enterprises with this view may be large.
  • IDC estimated that 70% of core applications run on traditional IT platforms, which include on-premises systems, as well as those in co-location facilities. Of the remainder, about 23% are in private cloud, and 8% are in public cloud. This initial estimate was made in 2017, but the IDC analyst who worked on this, Ashish Nadkarni, doesn’t believe these numbers have changed that much.”

A lot of information and marketing is being thrown around about the benefits of cloud vs on-premise – but very few people are talking about the more realistic option: hybrid.

Should you be considering Hybrid Cloud ERP?

Hybrid Cloud ERP is typically where you combine your on-premise setup with a public Cloud.

This means that you continue to operate business-critical applications, plus applications that have very specific requirements or technical limitations, under your own control and in your own data centres. This keeps business-critical systems stable, and means you don’t have to recreate your highly customised system again in a private Cloud environment that (probably) isn’t setup to support your specific business cases.

But while you do this, you then also use public Cloud to host less critical systems and data, meaning your users can access other applications or components from public Clouds, which helps reduce costs and implementation timeframes. This is especially useful if you want to access cloud-only add-ons or take advantage of the scaling features of the cloud for non-critical data.

This ‘best of both’ approach means you can keep your stable ERP systems in place, while still taking advantage of the latest developments in Cloud to enhance your current systems!

An example of this would be a large company with an ‘out of the box’ approach to HR/Payroll but a heavily customised ERP system:

The total ERP system would be a nightmare to transfer to the cloud with its multiple customisations and moving parts (that cloud probably would be incompatible with anyway). But by pushing just the HR/Payroll system to cloud, the company gains the cost savings and benefits of centralised updates without the hassle and complications of a broader migration.

But wait, what about de-support dates?

De-support dates are one of the main reasons why many organisations are mistakingly ruling out hybrid or on-premise ERP going forwards.

Oracle and SAP try to bully their customers into their latest products and versions by de-supporting their ‘legacy’ products. The SAP 2025 deadline and its equivalents are the most well-known examples. But remember, these deadlines are not an expiry date on their products, just the support of those products.

You don’t need to get support from Oracle and SAP directly.

3rd party support from Support Revolution not only provides superior quality support and SLAs when compared to the main vendors, but you can also save up to 90% off your current support bill.

This isn’t a one-time offer or special promotion, these are real yearly savings that every one of our customers receives when they transition their support to us (average savings for 2018 were 75% per year).

We also provide our own security updates and patches, meaning your systems stay secure after you move to us.

Find out how much you can save

Try our free savings calculator to see how much you could save by moving to 3rd party support. This annual saving can then be used more effectively in your organisation to invest in your own future, not your vendors…