SEPTEMBER 2019CIOAPPLICATIONSEUROPE.COM9Many CIOs are now faced with ageing ERP platforms that are uneconomical to upgrade to the latest version and where the burden of managing the testing of custom developments and code has become overwhelming. An ongoing requirement to periodically upgrade the underlying infrastructure and the ongoing management of a multi-layer infrastructure required for unit testing, quality, production and DR environments can burden businesses with an ERP Infrastructure that is leaden-footed and far from agile.Many organisations are now consuming software and support as a service as the default when introducing new applications and technology into their businesses but until recently this has stopped short of their enterprise applications such as SAP. The newest kid on the block and the last and probably scariest to migrate to is Cloud ERP - SAP has been quick to move into this market with their Public Cloud version of S/4 HANA and it is now a maturing platform. S/4 HANA public cloud is a viable option for new SAP customers and those looking to migrate from their traditional R/3 platforms. The Public Cloud version, in addition, sees the introduction of the latest technology such as machine learning and AI features with the additional benefit of a much-improved user interface and in-application supportThe question is, are we ready for Cloud ERP?How do you unwind decades of developments and customisations and move to a platform that has a degree of flexibility but by its very nature is a platform where changes to key code are not sorted after? One route is to consider starting again, whilst it may appear daunting, migrating your master data and starting afresh is a possibility for some businesses. There are lots of very smart people developing these systems with standard business processes and the question becomes - can your organisation adapt to a system rather than the system adapting to it? If you can answer yes to this then Cloud ERP may be a cost-effective escape route. Your organisation must be ready for their enterprise applications being served up as Software-as-a-Service with quarterly releases and a new look and feel; but, on the flip side, it will be benefiting from the latest and greatest technology being provided at regular intervals and with a modern UI.The traditional IT organisation will also need to adapt to support a Cloud ERP solution. The people structures and supporting service contracts need to be radically different in a business consuming Cloud ERP rather than traditional on-premise versions of the tools. Teams and contracts that serve to support the underlying architecture (i.e. Basis, ABAP, Infrastructure) need to evolve and change into supporting regular release cycles, integrations and analytics.The migration to a Cloud ERP platform is not a straightforward choice for any business but the short term pain will lead to long term gain. There are many comparisons to be drawn to the journey to cloud email, it is now the de facto starting point for any conversation and it's just a choice of vendor, the worries and concern around robustness and security are now a forgotten memory, in time the decision over Cloud ERP will be similar.As a CIO and business community, more and more of us are embracing the Cloud to provide elasticity to our IT landscape and in most cases a reduced total cost of ownership. Our crown jewels are our ERP platforms, the time is now upon us where a movement of this last bastion of on-premise, needs to be left behind with a movement to true public cloud ERP. Cloud platforms are now mature enough and most importantly robust enough to run your business on. S/4 HANA public cloud is a viable option for new SAP customers and those looking to migrate from their traditional R/3 platformsDominic Howson
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