The Value of a True Cloud ERP Platform

By: Sharon Paul

Today, cloud computing enables companies to adapt to changing business models, both strategically and operationally.

Companies with a cloud-first strategy have learned the real value of the cloud is the ability to delegate the service level agreement (SLA) of an entire solution, from infrastructure to application, instead of separate components. It is also widely recognized that a cloud platform reduces complexity and total cost of ownership and increases reliability, enabling faster development processes and decreasing overall risk.

Companies that take an ad hoc approach with siloed systems miss out on many of the cloud’s benefits and experience a variety of pitfalls.

In the current state of the market, not all cloud providers can step up to the challenge of providing an integrated offering, which leaves room for disparity in business processes.

Software-as-a-Service (SaaS)

As a fully integrated, all-in-one ERP platform, NetSuite is offered as Software-as-a-Service (SaaS). The applications are accessible via a web browser or mobile app.

Unlike on-premises software, you do not have to be involved with managing the underlying cloud infrastructure, including network, servers, operating systems, storage and application upgrades.

Multi-Tenant Architecture

NetSuite has a single instance of the application. Each tenant (user or group of users) can make customizations and configurations that are rendered to their dashboard.

Despite what illegitimate cloud vendors will tell you, multi-tenancy matters. For example, with a true cloud provider, all users typically access the same solution from the same cloud. This gives customers continuous and instantaneous access to the latest product upgrades.

tenant options

Preserving Your IT Investments

Public Cloud

NetSuite is offered as a public cloud deployment and has a single instance of the application. This aligns with NetSuite’s SaaS and a multi-tenant architecture that allows users of all sizes to be on the same version of the application globally, allowing them to reap benefits from less capacity planning, increased agility, scalability and lower IT costs.

Two-Tier ERP Strategy

Two-tier ERP is a business and technology strategy that enables organizations to keep their investment in existing ERP systems while deploying cloud-based ERP (e.g., NetSuite) at newer subsidiaries.

As large enterprises expand and restructure through mergers and acquisitions into larger companies, one of the strategies to preserve their existing ERP investments is to adopt a so-called hub and spoke approach to ERP. A hub and spoke approach refers to a network design where a central device, the hub, is connected to multiple other devices, the spokes.

There are three hub and spoke models:

  1. All business units (headquarters and subsidiaries) use a single application instance.
  2. An enterprise hub and business unit spoke use the same application — but may have more than one instance.
  3. Business units choose from an approved list of spoke solutions, which allows the subsidiaries to pick a solution that best suits their requirements. For example, localized business units often need to address specific customer billing and payment practices and local regulatory requirements.

An Integrated Business Application Suite

Companies in almost every industry use business software to manage their organization, but many are still struggling to manage costs effectively due to multiple systems causing process bottlenecks and employee productivity issues.

Integrated business software suites are transforming how companies run, giving them the real-time visibility and flexibility they need to see what’s happening with the business anytime, anywhere.

In an ROI study by independent analyst firm Nucleus Research, users of NetSuite’s integrated cloud business suite accelerated their financial close times by up to 50%, improved sales productivity by 12.5% and increased inventory turns by 50%.

SuiteSuccess – Zero to Cloud

NetSuite packages the experience gained from tens of thousands of deployments worldwide into a set of leading practices. These practices pave a clear pathway to success and are proven to deliver rapid business value.

NetSuite took a holistic approach to the problem and productized domain knowledge, leading practices, KPIs and an agile approach to product adoption. The benefits of this are faster time to value, increased business efficiency, flexibility and greater customer success.

You can learn how to quickly go live with NetSuite’s SuiteSuccess Starter Edition here.

Need Help?

If you need help transitioning to a cloud-based ERP, contact us online or give us a call at 410.685.5512.

Published May 17, 2024

Webinar Recording

Transitioning Your Accounting And Payroll Systems To The Cloud

ADP webinar title slide laptop

Dynamics GP to Business Central Tips and Tricks: Default Vendor Expense Accounts

When migrating from Microsoft Dynamics GP to Microsoft Dynamics 365 Business Central, one of the most frequently asked...

Enhanced Inventory Management for Sage 300

Most Sage 300 users are familiar with Sage Inventory Advisor, which has been a popular third-party add-on solution for...