For as far back as one can remember, it seems like enterprise IT departments and finance teams have simply dealt with the ongoing frustrations, time-sink and risks caused by upgrading their on-premise ERP systems.
Large budgets are set aside, top IT talent is redeployed to get the work done and teams of consultants are paid handsome contracts to map out a logical ERP upgrade strategy. Risk is managed through long hours and hard work, and then, upon actually upgrading to the new software, more time and money is spent fixing bugs and reimplementing customizations that broke in the upgrade process.
Other enterprises simply decide that the cost, resource requirements and risk of upgrading their on-premise ERP systems are too large to take on and they submit to the world of “version-lock” and the realities of old ERP. These companies use old, outdated code from their original on-premise ERP software and rely on internal teams and contractors to create customizations and spreadsheet-based workarounds to keep their business running.
In fact, according to a recent report by Forrester, “approximately half of ERP customers are currently on releases that are two versions behind the current release, which may be four years old or more.” (Source: “Trends 2011: ERP Customers Demand Better Flexibility, Cost Transparency, and Mobility,” Forrester, January 2011). The fact is that the majority of organizations choose to endure old ERP that’s “frozen in time” and out of tune with the business.
While running years-old ERP is the lowest cost option and sidesteps the risk of business disruption or downtime during a convoluted upgrade, these businesses compromise their agility and competitive position. They simply make do without the latest enhancements and bug fixes and assume responsibility of fixing and servicing their software when issues arise. By opting to run on outdated on-premise ERP software, these enterprises have essentially decided to slow down their ability to keep up with changing business requirements.
With the advent of cloud computing, the pain of ERP upgrades is finally becoming outdated. Cloud ERP eliminates "version-lock" and enables innovation with automated upgrades. For example, more than 10,000 organizations and subsidiaries such as Commco, Groupon, Spandex America, Olympus, ClearChoice and TradeCard now ensure all their divisions are always running on the latest version of their cloud ERP software automatically without any painful expensive ERP upgrade projects. Their previous customizations carry forward to the latest version without any reimplementation required.
An upcoming webinar, "Making the Move from Version-Locked On-Premise ERP to the Cloud: How Three Companies Excelled by Moving to Cloud ERP," scheduled for Tuesday, November 15 at 11 a.m. PST (2 p.m. EST), will provide the business case for businesses looking to free themselves from the shackles of “version-locked” on-premise ERP.
Join this webinar to hear from three executives at enterprises that have gained agile, always up-to-date ERP by upgrading to the cloud—Allison Musgrave, Controller of Spandex America; Brad Kugler, CEO of Distribution Video & Audio; and Jim Feeney, CFO of Booth Creek Resort Properties LLC. Our guests will provide a candid discussion on their last-ever painful ERP upgrade. To register for the webinar, please visit www.NetSuite.com/NoVersionLock.
For additional information about how companies can modernize their business operations and minimize ERP upgrade pain, and to obtain the white paper "Eight Ways Outdated ERP Damages Your Business,” please visit http://www.netsuite.com/portal/landing/cloud-upgrade-up.shtml.