SaaS ERP Adoption Loses Momentum

Cloud and software as a service (SaaS) enterprise resource planning (ERP) adoption has decreased from 26% of all implementations in 2012 to 15 percent in 2013.

This was one of the biggest findings from the Panorama Consulting Solutions 2014 ERP Report.

"While these two numbers aren't materially different from one another and certainly don't warrant a reason to sound the alarms just yet, it is a bit surprising compared to what most of us might have expected," says Eric Kimberling, managing partner of Panorama.

This is the fourth year that Panorama has tracked adoption of cloud and SaaS ERP options and the first year that the number has actually declined from the previous year. Among the most recent wave of ERP implementations worldwide, says Panorama, 15 percent are using a cloud-based solution of some sort, whether it is a pure subscription, SaaS-based model or a third-party hosted solution.

It explains that this number is down from 26 percent the last time it published the metric, which had grown from 6% two years prior to that.

"We are not certain if this data point is an anomaly that will reverse next year, but it is enough to suggest that there are still potential obstacles and concerns hindering the adoption of cloud ERP solutions," says Kimberling.

However, from the research it emerged that organizations seem to have better rationale for implementing ERP systems.

Kimberling argues that during the past several years of research and implementation experience with clients, Panorama found most organizations did not have clear reasons for implementing new ERP systems.

"EUBecause we have to' was the most common reason we saw in our past research and experience, showing that most organizations replaced their systems when vendors stopped supporting the product, the organization fell behind on upgrades, or the organization simply could not scale their organizations without a new...

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