Munir Mandviwalla

Handling Hybird ERP Systems

Emerging cloud system

Most companies with an ERP system have some sort of hybrid system – generally through purchasing a cloud service that then must integrate with a preexisting on-site solution. This can tend to create work, as IT departments need to ensure cloud solutions integrate with core systems whenever an update occurs to either system. One of the biggest questions businesses face is knowing which information to host on the cloud and which information should stay in core systems. The current general tactic is for cloud services to enable anything related to data aggregation, financial reporting, intelligence, backup and disaster recovery, and more (CIO). This leads to nearly any consumer-facing application being hosted on the cloud, with HR and finance being the next to be fully devoted to the cloud. A hybrid system allows for more balance, which in turn allows for a redefining of processes to align to the cloud if needed, or to stay on a core system. Ultimately, a hybrid environment provides greater flexibility for companies when they need to grow or move into new areas. 


Besides CRM, KM, HR, and finance, which other major business processes make the most sense to host on the cloud?

Why do you think businesses prefer hybrid systems rather than diving into an all cloud system?

What capabilities make the most sense to leave on a core system? Are there any processes that you think should never go to the cloud?

2 Responses to Handling Hybird ERP Systems

  • Some places are more conservative about getting things into the internet, which in this case is the cloud storage. Top managements will see as a HIPPa violation or not safe for our clients and for out company. Most business still face the challenges of using cloud technology to move forward with the business. For example, there is an article that explains the usage of cloud technology to enhance more Big Data. The article states companies still having the “fear” of cloud computing. Also, another reason for having hybrid systems is the cost of trying to change a big piece in the system. Top management will still have a hold on the all cloud system due to cost related.

  • Cloud technology has come a long way since its beginnings and has grown exponentially over the last decade. Unfortunately Cloud’s development came in the recent past, which for some companies was long after they had established on site infrastructure and processes. For these companies migrating this infrastructure and processes to the cloud would come at tremendous expense, both in time and dollar amount. For these companies it makes the most sense to maintain a hybrid system (if they migrate anything at all to cloud).

    I personally believe that everything can and should be hosted on the cloud. Netflix is a perfect example of a company that using Amazon web services to host their service, while they focus on their core competencies. This is the way every company should operate, focusing on what they do well, while outsourcing something (in this case hosting) that is not in the companies core competencies. So in my opinion infrastructure should be outsourced to allow companies to focus and invest in areas that will complement and expand their core offerings.

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