In the digital age, ERP systems need to be more agile and also have the capacity to handle more. Advanced ERP should address more complicated processes with ease and support new technologies like Machine Learning (ML), Digital Assistants, Artificial Intelligence (AI), to name a few. A cloud-based ERP can help businesses accomplish the same, compelling them to enhance their ERP by moving it to the Cloud.
Being a mission-critical application, Enterprise Resource Planning (ERP) connects all operations, from customer management and sales to finance and inventory. It provides decision-makers with the desired clarity and promotes collaboration across teams.
Moving to the cloud can be a tedious process despite the obvious advantages. Therefore, it needs to be done in the right way to ensure it’s aligned with the business goals, and delivers the value it promises. It’s critical to take a realistic and holistic approach to understand services and applications while opting for cloud migration.
According to Forrester, the global public cloud infrastructure market is predicted to grow by 35 % to $120 billion in 2021.
Businesses can settle on one migration plan depending on the nature of the business, whichever works best across the board. Here are six practical approaches, also known as the 6 R’s of Cloud Migration.
Rehost or “Lift and Shift” is an excellent option to consider if businesses want to focus on the technology and avoid changing a lot of the code, architecture, and/or functionality of E-Business Suite applications. The essence of it is to quickly experience the CAPEX to OPEX and other advantages of Cloud IaaS.
However, it comes with some limitations. The applications operate and process data locally, and only the finalized data/reports are stored in the Cloud. This indicates that businesses are not taking complete advantage of the cloud.
Replatforming involves minute modifications to the code for taking advantage of the new cloud infrastructure. It’s a great strategy for businesses striving to build trust in the Cloud while gaining benefits like increased system performance.
One drawback of this strategy is that the project scope can differ and become a total refactor if not done correctly. Managing scope and neglecting unwanted changes are crucial to alleviating this threat.
The refactoring strategy entails redeploying or rebuilding the application with the help of cloud-native features. Unlike rehosting, a refactored application pulls out data from cloud storage for analysis and concludes its analytics and computations within the Cloud.
Even though it is a resource-intensive and complicated process, it is extremely compatible with future versions and guarantees excellent ROI in the long term.
Businesses can opt to abandon their legacy applications collectively and shift to already established SaaS (Software-as-a-Service) applications from third-party traders. Though this strategy is economical, commercial products provide less customization and may require some changes in business processes.
This strategy signifies that an application is clearly eliminated. If the ERP doesn’t reach the cloud feasibility assessment, experts recommend simply retiring it and implementing a SaaS-based ERP as suggested in the above strategy.
If businesses cannot take data off-premises due to compliance reasons or if they are unable to prioritize an app that was upgraded lately, then revisiting cloud migration is a must when the necessary compliance mandates have been received.