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Hybrid ERP matures as companies develop better strategies

Michael Nadeau | Feb. 23, 2017
Developing new strategies to ensure that cloud and on-premises ERP systems play nice together is just one part of the hybrid challenge.

That new platform would allow Sabre to get to new products and services faster and respond to product development group. “The ability to produce new products and services and get them to market was hampered by processes in our financial and billing systems, and what it took to get everything in alignment. The concept was to move to S/4HANA and use it as a digital core of our data where everything connects to it. We leverage SaaS from other parts of the company including our IT service management platform, customer care systems (Siebold and Salesforce), Ariba, and SuccessFactors. HANA becomes our centerpiece where we can get at data and connect it to Hadoop for big data for reporting analysis and data mediation.”

“One clear emerging pattern is that this [hybrid ERP] is very much a platform decision,” says Steve Cox, vice president of ERP and EPM GTM at Oracle. “Here’s our current infrastructure as it is, here’s how cloud technologies can transform our business, and this is the cloud platform that gets us to that future state.”

Hybrid considerations

Now that companies understand hybrid ERP, they are better able to set priorities for selecting and implementing solutions within the hybrid environment. Hasan sees these factors that motivate Microsoft’s customers toward a hybrid solution:

  • A conservative attitude toward a purely cloud environment
  • A desire for control of data, data residency and data isolation
  • Local network dependencies of the service for business continuity (speed and connectivity)
  • The ability to customize the configuration of the service infrastructure to meet specific business needs such as scalability
  • Recent investments in the company’s data center resources
  • Choice of separating the service operator from the service provider to avoid lock-in by a single provider.

“A true hybrid system, is pragmatic and combines the best of cloud and on-premises environment,” said Hasan. Driving that pragmatism is a need to run business processes and store data across the cloud and a company’s own data centers. “For example, customers with extensive analytics needs can’t and shouldn’t just rely on data that resides in their own data centers for intelligence,” says Hasan. “The cloud is now a rich and necessary source of information and to get the best analytics, businesses need to leverage all available data sources.”

There’s also the question of what type of cloud to use for a given application. “Customers have on-premise solutions that they have migrated to Oracle Cloud Infrastructure as a Service (IaaS) as an infrastructure provider to quickly increase business value and performance,” adds Cox. “That can be a mix of public cloud solutions or even include Oracle Cloud in their data center.”

Integration within the hybrid ERP system and with point solutions outside core ERP is another important consideration. “Businesses should consider business integration, how it will connect with their existing systems, scale – can the system they are deploying scale to their needs, both from a transaction and global availability perspective,” says Hasan.

 

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