Will Hybrid ERPs Become a Market Focal Point?
Typically, on-premise enterprise resource management (ERP) solutions are thought of as traditional, while cloud-based options, like SaaS ERPs, are thought to be more progressive. In part, this is simply because the cloud-based ERPs utilize more contemporary technology, but it’s also to do with the flexibility and fluidity associated with these newer technologies.
As is often the case with new technology, there is an underlying resistance against adoption. In the case of ERPs, the resistance is born off fear, even if that fear is not entirely rational.
But while the battle between new and traditional has playing out for years, a new trend has emerged that suggests a compromise may be possible.
Network World recently published a piece assessing industry trends and noted that, “It’s hard to find a company that does not have some form of hybrid (cloud vs. on-premise) ERP system.” Mostly, this comes from various users having different preferences and utilizing different methods to complete tasks. Think spreadsheets vs. Google docs.
Even if an on-premise ERP is the primary solution used by a company, some employees will use other cloud-based software to complement or work around the system. In response to this evolving habit, “organizations are now transitioning from an ad hoc approach to building a hybrid ERP system to a more strategic planning process.”
The idea is to take the best from both worlds, or to at least satisfy the concerns of companies with cloud-based solutions. While the scenario being describe is idyllic, it is indeed plausible. ERP providers are always facing the question of what companies want, and the answer invariably is, the best of both worlds.
Creating the perfect system that appeases everyone is not going to happen; not for a single provider, and certainly not for the ERP market as a whole. It's simply not realistic. But any earnest effort will consider compromise, which is why you already see safety, a perceived (though fictional) pillar of on-premise ERPs, becoming a greater focus for cloud-based ERPs.