Migrating To The Cloud – Don't Believe The Hype

With so many companies switching to a cloud solution, it is difficult to imagine it any other way than good. However, that is far from the truth.

Cloud ERP is unquestionably great for vendors. It shortens the sales cycles, decreases contract negotiations, and above all increases software vendor profits. For vendors it results in a consistent revenue stream. Because of the perpetual nature of cloud payments, the cost of cloud solutions for customers over the long term is much higher than traditional on-premise solutions – and the profits for vendors can be exponentially higher.

For customers, the ease of implementation, lower support costs, and the reduced need for IT resources are all valid selling points. But the reality is that the cloud is overhyped, and has substantive risks and disadvantages. While the cloud has been hyped as "next generation" and "best practice," there are a number of traps awaiting the unwary or the rushed.