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Why move to the cloud, your on-premises technology is working fine, so don’t touch it, right?
This approach may be fine for now; however, the world has gone and is going digital. Moving forward with a digital strategy is prudent if you want to stay ahead of your competitors and to meet the demands of an increasingly digital-first economy.
For businesses of all sizes, but particularly for small and medium-sized businesses (SMBs), digital technology has been paramount to navigating and to succeeding during the pandemic. According to PayPal, digital SMBs saw 25% year-over-year (YoY) growth in Q2 of 2020, compared to a publicly reported 9% drop in revenue for overall SMBs.
The pandemic has exposed the differences between leaders and laggards in their digital transformations. Organisations that embrace new digital technologies and those that invested capital expenditures in digital technology were twice as likely to report outsize revenue growth than executives at other companies.
Furthermore, laggards have a higher risk of:
- Falling further behind competitors who have gone digital
- Spending more time and money on maintaining aging systems
- Increased workforce frustration that may lead to attrition and failure to attract new hires
Going digital starts with a cloud-first strategy.
Gartner Research reports 85% of organisations will have a cloud-first strategy by 2025. Cloud increases business agility, both operationally and financially. Furthermore, cloud deployments deliver 4.01x the return-on-investment (ROI) compared to on-premises deployment.
For many of you who are buying a financial and Enterprise Resource Planning (ERP) system for the first time, choosing a cloud-based system over an on-premises version makes sense.
Compared to on-premises offerings, cloud-based solutions generally have lower upfront costs and capital expenditure, faster deployment, and easier administration. If you have an on-premises system, you will need to decide if you should stay on-premises for now and move to a cloud-based system at a later date.
There is no simple right or wrong answer to this question. Every organisation has different requirements that will determine their deployment strategy: on-premises, public or private cloud, or hybrid cloud. But there are a few questions to ask before deciding. That is where we come in.
With ERP options for both on-premise, cloud or even hosted, the team at Innov8 can help support your business operations, both now and well into the future.
Learn more about cloud financials here
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