Panorama Consulting's recent '2017 ERP Report' at first glance could send shock waves through the heart of the SI community as they reported a decrease in companies implementing cloud based solutions. Thinking I had been misguided in attending numerous Cloud seminars, from all the ERP vendors, and positioning Cloud as the way forward my heart sank.
As the beads of sweat started to form I read on and thankfully, it was revealed that SaaS ERP cloud projects have increased so no immediate need to panic.
The moral of the story: when talking to colleagues or customers take the time to understand what they mean by cloud and do not assume that its is the same as you.
Last year, we saw cloud adoption plateau, but this year’s study shows a decrease in cloud ERP software adoption. There was a 21% decrease in companies implementing cloud solutions compared to last year, while on-premise deployments increased by 11%. Common reasons for not opting for cloud systems include perceived risk of data loss (72% of respondents) and perceived risk of security breach (12% of respondents). There is good news, however, for the SaaS subset of cloud systems: there was a 10% increase in respondents implementing multi-tenant SaaS systems. However, companies are still four times more likely to implement private or single-tenant cloud solutions as they are to leverage multi-tenant cloud solutions. This will be an important trend to watch in future studies.