ERP's in general and int he cloud are just way too expensive for what they do, especially in this business environment. Their subscriptions are literally an open cheque and they have you in a headlock.
I think what eventually going to happen is cloud adoption is going to continue to grow amongst Small & Midsize orgs while the Enterprise starts to trend towards a hybrid solution.. The trend I see in our practice especially during this COVID period is that organizations are now demanding more value and flexiblity from us as CSPs for their spend..
Very well said! In fact, I don’t think people really do the numbers because cloud is ALWAYS more expensive, in fact if you consider a 5 year lifespan for your hardware, IAAS is 6-7 times more expensive, SAAS even more. People just jump to this cloud bandwagon. Only advantage of cloud (if it applies to you) is that you defer capex for Opex, but generally the cost does not justify this unless you are a small company.
Hi Eric, What about your thoughts of control? During this COVID-19 crisis, we see many media (Facebook/Twitter/RUclips) taking more control/censorship. I think it’s a valid question: do you want to outsource your company’s heart (ERP for example) and put it in their hands? Perhaps we are going to see radical decentralization (food, energy, infrastructure), to become less dependent on major players.
Eric Kimberling, i 100% agree , that was my experience with one cloud vendor, i paid them more then i wished or contractually negotiated, just because they have the proof of their cloud usage .
I think CLOUD is too broad a term, since SaaS is a CLOUD offering, and IaaS is a CLOUD offering. Cloud based, IaaS gives many organizations the hybrid of their systems, in the cloud, as they choose and select their on premise equivalent systems. Vs. SaaS where the vendor determines the single source of the multi-tenant hosted solution.
Only statement I can agree with is the comparison with carleasing. Leasing being cloudsoftware and buying a car being software on premise. It has been researched and proven many times that leasing a car is in the end of the day (much) more cost effective than buying one. Especially when you want to be up-to-date in technology. Only chance you have in buying a car and end up with less costs is to keep the same car for many, many years (total write-off strategy). Analogy: in a business you can keep software for let's say 2 years and then it becomes working with outdated technology that's holding back your business. SaaS not flexible?? Ha! I've experienced many clientcases for which my company has especially developed modules or modifications, all operable from the cloud and working perfectly fine. Very often developed and delivered and made operable way faster then on premise software cases. (which we also deliver) As a matter of fact, when software is developed the right way (modular) cloudsoftware often provides more flexible solutions than on premise. And it is definitely a fact that companies can save money on hardware and staff by getting rid of on premise software. On the conditon of course that all software is cloudbased. By using partially private cloud solutions with the right security, the security argument isn't valid either. In terms of costs: in all businesscases where our clients moved from on premise software to SaaS, they were better off with their investments, it really saves a lot of money. The subcription- and servicefee model with very inefficient update and implementation phases etc, always was more time consuming, required more IT staff attention on customerside . Of course a licensefee model should be fair: we provide free updates all year round etc. So no hidden additional costs. Besides all this Cloudsoftware is just as safe as on premise. Unless a company has no internetaccess at all......but such companies no longer exist (except some very specific companies with high profile, working for the military etc). Businesscontinuity in case of a breakdorn or bankruptcy of the vendor? No problem, that's all covered in escrow services in which the latest software versions are covered. As a European and listening to all this I'm beginning to think that we're (waaaay) ahead compared to the States when it comes to the IT business landscape and software development in particular. That's of course partially caused by the fact that like in the Netherlands where I live, glassfibre highspeed internet is the standard. So we have the perfect basis for SaaS.
Love your videos! Companies will find themselves in "Amazon prime" situation. Currently cloud ERP, storage , services are being offered at introductory prices simply to increase adoption and once they reach the top of the 'S' curve, vendors will raise the price! Companies that benefit from new cloud-features will thrive but others might not. Lets see in a few years if pendulum swings back or not!
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ERP's in general and int he cloud are just way too expensive for what they do, especially in this business environment. Their subscriptions are literally an open cheque and they have you in a headlock.
I think what eventually going to happen is cloud adoption is going to continue to grow amongst Small & Midsize orgs while the Enterprise starts to trend towards a hybrid solution.. The trend I see in our practice especially during this COVID period is that organizations are now demanding more value and flexiblity from us as CSPs for their spend..
Very well said! In fact, I don’t think people really do the numbers because cloud is ALWAYS more expensive, in fact if you consider a 5 year lifespan for your hardware, IAAS is 6-7 times more expensive, SAAS even more. People just jump to this cloud bandwagon. Only advantage of cloud (if it applies to you) is that you defer capex for Opex, but generally the cost does not justify this unless you are a small company.
Hi Eric, What about your thoughts of control? During this COVID-19 crisis, we see many media (Facebook/Twitter/RUclips) taking more control/censorship. I think it’s a valid question: do you want to outsource your company’s heart (ERP for example) and put it in their hands? Perhaps we are going to see radical decentralization (food, energy, infrastructure), to become less dependent on major players.
But cloud is not necessarily public. Clients can have private clouds in their data centers
Thats why Tally ERP reigns king in South Asia. Buy once and forget it. Does the job perfectly fine for even large companies.
I believe ODOO is a winner
I haven't used it but I'm studying this and will move into it shortly
Eric Kimberling, i 100% agree , that was my experience with one cloud vendor, i paid them more then i wished or contractually negotiated, just because they have the proof of their cloud usage .
Well done! Objective and fair. I would like to have heard you further explain and explore the hybrid option that you mentioned briefly.
Agree particularly for large corporations did a cost analysis for inhouse vs major cloud solutions. Inhouse came out winner
I think CLOUD is too broad a term, since SaaS is a CLOUD offering, and IaaS is a CLOUD offering. Cloud based, IaaS gives many organizations the hybrid of their systems, in the cloud, as they choose and select their on premise equivalent systems. Vs. SaaS where the vendor determines the single source of the multi-tenant hosted solution.
Only statement I can agree with is the comparison with carleasing. Leasing being cloudsoftware and buying a car being software on premise. It has been researched and proven many times that leasing a car is in the end of the day (much) more cost effective than buying one. Especially when you want to be up-to-date in technology. Only chance you have in buying a car and end up with less costs is to keep the same car for many, many years (total write-off strategy). Analogy: in a business you can keep software for let's say 2 years and then it becomes working with outdated technology that's holding back your business.
SaaS not flexible?? Ha! I've experienced many clientcases for which my company has especially developed modules or modifications, all operable from the cloud and working perfectly fine. Very often developed and delivered and made operable way faster then on premise software cases. (which we also deliver) As a matter of fact, when software is developed the right way (modular) cloudsoftware often provides more flexible solutions than on premise. And it is definitely a fact that companies can save money on hardware and staff by getting rid of on premise software. On the conditon of course that all software is cloudbased. By using partially private cloud solutions with the right security, the security argument isn't valid either.
In terms of costs: in all businesscases where our clients moved from on premise software to SaaS, they were better off with their investments, it really saves a lot of money. The subcription- and servicefee model with very inefficient update and implementation phases etc, always was more time consuming, required more IT staff attention on customerside . Of course a licensefee model should be fair: we provide free updates all year round etc. So no hidden additional costs.
Besides all this Cloudsoftware is just as safe as on premise. Unless a company has no internetaccess at all......but such companies no longer exist (except some very specific companies with high profile, working for the military etc). Businesscontinuity in case of a breakdorn or bankruptcy of the vendor? No problem, that's all covered in escrow services in which the latest software versions are covered. As a European and listening to all this I'm beginning to think that we're (waaaay) ahead compared to the States when it comes to the IT business landscape and software development in particular. That's of course partially caused by the fact that like in the Netherlands where I live, glassfibre highspeed internet is the standard. So we have the perfect basis for SaaS.
Totally agree
Love your videos! Companies will find themselves in "Amazon prime" situation. Currently cloud ERP, storage , services are being offered at introductory prices simply to increase adoption and once they reach the top of the 'S' curve, vendors will raise the price! Companies that benefit from new cloud-features will thrive but others might not. Lets see in a few years if pendulum swings back or not!
What happens when the ERP vendor goes bankrupt? What happens to your implementation? What happens when u wanna move to a new ERP system?
Best solution is to hand out a cloud image to the client and explain to them that they had it coming 😂
Great work... 👍
Thank you very much