Dependable and Controlled Access to Cloud ERP

By Mark Engleman, Engleman Associates, Inc.

The Typical Cloud ERP Offering has Multiple Weaknesses

A company’s ERP is a critical business application supporting critical processes. If a well-implemented ERP is suddenly ‘unavailable,’ it will effectively shut down many key business processes and be costly in terms of dollars and customer confidence. An extended outage duration may cause permanent damage to the business.

Based on this, buyers should obviously be diligent in containing aspects of the ‘ERP deal’ that jeopardize or confuse legitimate and defensible access to and control of the ERP. This is especially true for ERP that is, to some degree, managed and controlled remotely—which we’ll call Cloud ERP. Matters to understand and evaluate with any Cloud ERP offering are:

  • Multi-Tenant Cloud ERP pros and cons—compared to a single instance Cloud ERP
  • Cloud ERP performance related to hardware and Internet access and who should be responsible for various components
  • Cloud ERP application management and performance and who should be responsible
  • IT infrastructure risks to manage with Cloud ERP
  • Back-up options to access the company’s Cloud ERP
  • Commercial terms related to Cloud ERP access and key issues to fix
  • Cloud ERP access cost control objectives and approach to achieve solid results
  • Implementation of Cloud ERP

For details on these topics click here.

It’s important to understand that most sellers of Cloud ERP will resist meeting a buyer’s informed objective related to the list above. Fundamentally the ERP companies believe such buyer goals will disrupt their objectives for customer control which has impressive impacts to improved revenue potential over time. Once the ERP has been implemented, the buyer is locked down and cannot easily escape the commercial relationship. This combined with the typical awful commercial terms offered is fertile ground for exploiting ERP buyers over time. Read about the details here to avoid being that ERP buyer.