When NetSuite reached out to senior IT executives to understand more about how its cloud-based ERP systems support and accelerate growing organizations, these executives shared some interesting insights. Talking about why they switched from on-premise to cloud-based systems, how the implementation process occurred, the benefits they experienced, and lessons they learned, these participants kept mentioning one key thing: firms have realized that their historical processes and on-premise systems are inadequate. They understand that they need to modernize their IT infrastructure to provide the visibility and scalability necessary for growth. While there are many compelling reasons why companies move from older on-premise applications to modern cloud-based solutions, such as NetSuite, the interviewed executives revealed 11 main reasons:
Achieving ambitious growth and expansion goals means finding a way to operate differently, with real-time visibility, speed, and scalability needed to make fast and informed decisions. This requires a modern IT infrastructure. For most organizations, the on-premise systems of the past don’t meet the business needs of the present and future. That all changes with NetSuite’s full-scale cloud-based offerings.
The cloud represents a tremendous opportunity, with industry research and analysts saying that the cloud has become the gold standard for doing business. Research suggests that, by 2020, anything other than a cloud-only strategy for new IT initiatives will require justification at more than 30% of large-enterprise organizations and, by 2021, more than half of global enterprises already using cloud will adopt an all-in cloud strategy. Industry experts agree that cloud is the way forward. Forrester suggests that, in 2019, enterprise cloud spending will soar as core business app modernization takes off, while a recent Mint Jutras Survey revealed that SaaS is the predominant deployment choice today. Gartner says cloud is the number one technology affecting IT, with Forrester adding that cloud computing is set to firmly establish itself as the foundation of tomorrow’s enterprise application platforms and is the best way to create compelling software experiences that meet modern customers’ demands.
Cloud suites usually include hardware, security and operations, with most executives agreeing that the cloud paradigm has cost and convenience benefits, including easy availability, speed, agility and total cost of ownership (TCO). This enables faster development processes and the ability to offer increased reliability and lower risk. In the current market, not all cloud providers can step up to the challenge of providing an integrated offering, though, forcing companies to manage more than they want to. NetSuite, however, provides an integrated platform and even, in the case of unique businesses, tailored solutions.
This results in reconciliation of data across the organization. Every application uses the same data repository, so all users have access to the same information. Additional NetSuite benefits include a true-cloud solution. Many software vendors run old, on-premise software in a data center and call it cloud-based. In contrast, NetSuite was built from the ground up as a multi-tenant, true-cloud solution.
Compared to on-premise systems, cloud-based ERP costs are much lower. Organizations simply access cloud systems via an internet connection. With true cloud solutions – which is what NetSuite offers – the cloud provider hosts and maintains the IT infrastructure, ensures the system is always up and running, maintains system security, and rolls out product enhancements seamlessly without breaking customer customizations. Cloud ERP systems also offer a predictable pay-as-you-go subscription model that makes cash flow planning much easier.
Cloud solutions take maintenance and upgrade concerns off the table. Companies can focus on their core competencies and on running the business.
When organizations have multiple on-premise systems, separate islands of data result. To bridge the gaps, employees often use ‘spreadsheet-based accounting’. An integrated, cloud-based suite eliminates the need for this type of workaround.
This includes multi-subsidiary management. Consolidating multi-subsidiary and multinational financials with other ERP solutions can be time-consuming and expensive. Organizations must either conduct the exercise across a multitude of spreadsheets or invest in separate accounts for every subsidiary and international division, as well as in additional external reporting tools.
The workforce today is very different from a decade ago, requiring information quickly, easily and on-the-go. NetSuite provides self-service, real-time access to information anywhere, anytime, from any device.
NetSuite enables global organizations to manage multiple subsidiaries, business units and legal entities. It seamlessly handles different currencies, taxation rules and reporting requirements from a single platform.
With NetSuite, organizations are no longer version locked. Since NetSuite hosts its own applications, updates and upgrades are managed seamlessly without breaking customers’ customizations and third-party integrations. Organizations no longer have to worry about the maintenance of their IT infrastructure.