With the popularization of cloud computing and Software-as-a-Service (SaaS), many CFOs and CIOs are questioning the large investment needed to implement, host, and manage ERP applications. In fact, CFOs are finding it increasingly challenging to support Capital Budget requests for new ERP applications or even new modules within their existing ERP infrastructure.
Similarly, there is constant pressure on Operational Budgets. IT leaders are being asked to do more with less year after year, thereby needing to closely manage their current PeopleSoft environments, hardware purchases, hosting costs, and the costs of the associated resources. Cloud computing can offer relief from these challenges.
In fact, in a recent survey, the Financial Executives Research Foundation (FERF) and technology advisory firm Gartner found that 53 percent of CFOs agree that more than half of their enterprise applications and transactions will be delivered on via cloud-based computing through software-as-a-service over the next four years.
Here are 5 reasons to consider putting your PeopleSoft applications into the cloud:
1. Cost Savings and Increased Profits
More CFOs are beginning to understand the benefits of accessing PeopleSoft applications and best-practice business processes through the cloud; benefits that include less cost, less risk, and reduced time and labor the organization must devote to managing the application.
Cost is obviously one of the driving factors in moving your applications to the cloud. Many cost savings come from the economies of scale in fully utilizing and optimizing hardware, using less electricity, lowering staffing needs, and increasing resilience without redundancy.
Note: To demonstrate the specific cost savings, Velocity has produced a PeopleSoft TCO value model detailing the total costs of hosting/managing PeopleSoft in a traditional, on-premise model to a private cloud model.
Scalability allows your IT organization to quickly and easily grow or shrink depending on the business need at hand. Human capital management solutions, such as PeopleSoft, are particularly subject to the changeable nature of the employee populations they support. As the economy continues to recover, being able to scale just-in-time when you need it is very beneficial.
There have been many scenarios where organizations decide to implement a new PeopleSoft module, such as the Talent Management, Recruiting, or Performance Management applications, which requires them to increase disk space, memory and even additional servers to accommodate increased workloads and users.
In this case a typical IT organization would have to provision new hardware and allocate internal resources to complete the work. Running the PeopleSoft application in the cloud allows the organization to quickly and efficiently scale just-in-time.
3. Operational Efficiency
Having your PeopleSoft applications in the cloud greatly increases your operational efficiency with better service levels, quicker turnaround times, and more streamlined internal and external interactions.
Most organizations do not have the bandwidth to monitor performance and respond to all incoming requests in a timely manner. When operating in the cloud, there are tools in place that help to automate the monitoring and service requests. Because of this, I have seen a major increase in the organization’s overall operational efficiency.
Choosing a hosting partner like Velocity and placing your applications in the cloud helps ensure that your applications, infrastructure and security mechanisms, processes and procedures are compliant. This saves you time and money without having to establish these very important factors on your own.
5. Access to Cutting-Edge Technologies
Moving to the cloud makes it easier to integrate your PeopleSoft applications with cutting-edge technologies such as embedded business analytics and social collaboration. For a majority of Velocity customers, we host not only their core business applications, such as PeopleSoft, E-Business Suite, or JD Edwards, but also these types of cutting-edge and supporting technologies. The combination is integral to managing and tracking the full business processes these applications support.
Organizations are already reaping the benefits of the cloud. When your organization is ready to make the move to the cloud, your company will also be able to take advantage of the above benefits - increasing your overall efficiency, performance, and compliance.