Digital disruption is resulting in an increase in the adoption of Platform-as-a-Service (PaaS) to develop and deploy custom applications in the Cloud, according to a new study by technology analyst firm, Telsyte.
In its 2015 Australian Enterprise Applications Market Study, it found 56 per cent of organisations are already using or investigating PaaS to deploy custom software as more seek fit for purpose applications.
Telsyte senior analyst, Shayum Rahim, said cost, ease of use and emerging technologies like the Internet of Things and mobile apps are changing the way CIOs think about enterprise applications.
“PaaS empowers organisations to create role-based applications customised for business requirements as well as mashups utilising APIs,” he said.
According to the study, the big drivers for custom application development include improving business process (53 per cent), unique application requirements (46 per cent) and to create competitive advantage (37 per cent).
In addition, the study also found that almost a third of organisations are currently using custom, in-house developed software to satisfy a business need, indicating a latent demand for PaaS development environments, and that many Australian organisations are moving to Cloud-based point solutions, signalling a shift to a “best of breed” usage model for enterprise applications.
“We are seeing a growing wave of cloud-based applications being used as point solutions for everything from HR to expense management, further accelerating the decoupling of the ERP suite as solutions are offered across multiple platforms and devices,” Rahim mentioned.
Other findings from the study include:
- Nearly two-thirds of organisations are using less than half of the ERP features available
- As many as one third of organisations require further customisation to their existing ERP software, representing a massive over investment in what is considered to be the core business application
- The top two factors for ERP success are easy to use interfaces and flexibility of the ERP system
- Challenges with traditional ERP include high cost, not easy to modify or configure, and long implementation times, all giving organisations reasons to look at SaaS.
- The new frontier for ERP will be in mobility and the Internet of Things as sensors on everything will transform business processes
“From machine breakdown prevention and real-time error correction in manufacturing processes to real-time inventory control and predictive replenishment in warehousing and distribution, ERP needs to undergo changes to meet the challenges of digital disruption,” Rahim added.
Sign up for CIO Asia eNewsletters.