The Pros and Cons of Putting Apps in the Cloud

 
 
By Samuel Greengard  |  Posted 02-23-2015 Email
 
 
 
 
 
 
 
 
 
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    A Focus on Data
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    A Focus on Data

    Organizations are slow to move applications with a lot of historical data into the cloud. Among the trailing areas: database and master data management (29%), governance/risk management/compliance (27%) and finance/accounting (22%).
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    Newer Apps Are a Good Fit
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    Newer Apps Are a Good Fit

    The most popular enterprise applications in the cloud: mobile device management (52%), CRM/contact centers (49%) and business analytics/big data apps (42%).
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    Large Enterprise Leads, SMBs Lag
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    Large Enterprise Leads, SMBs Lag

    Large enterprise has moved into the cloud more aggressively than SMBs in almost every category, including MDM (61% vs. 36%), enterprise content management (49% vs. 33%) and ERP/SCM (48% vs. 22%).
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    Large Enterprise and the Cloud
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    Large Enterprise and the Cloud

    Among large firms, the top three enterprise cloud applications were: CRM/contact centers (63%), mobile device management (61%) and business analytics and big data apps (58%).
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    SMBs and the Cloud
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    SMBs and the Cloud

    By contrast, the top three enterprise cloud applications among SMBs were: marketing/sales (48%), CRM/contact centers (46%) and finance/accounting (37%).
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    GRC Trails in Cloud Adoption
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    GRC Trails in Cloud Adoption

    Governance, risk management and compliance ranks low for cloud-based applications. Only about 45% in both the financial sector and health care plan to migrate or already use the cloud for GRC.
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    Government View
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    Government View

    56% of executives in the government sector reported that they either don't use clouds or don't have plans to migrate to the cloud.
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    Important Features and Benefits
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    Important Features and Benefits

    Respondents indicated that the top three selling points for SaaS enterprise applications were: ease of use for end users (84%), attentive customer service (81%) and easy implementation (78%).
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    Least Important Features and Benefits
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    Least Important Features and Benefits

    Respondents said that the least important selling points for SaaS enterprise applications were: API or PaaS options for customization (51%), no requirement for human resources (46%) and an existing relationship with the vendor (39%).
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    Business vs. IT
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    Business vs. IT

    80% of respondents indicated that line-of-business executives have final purchase authority. About 71% said that business requirements trump technical requirements when choosing enterprise applications.
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    Top Vendors
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    Top Vendors

    Survey respondents noted that their top enterprise application vendors were: Microsoft (84%), Oracle (64%), IBM (56%), Salesforce (51%) and SAP (49%).
 

It's clear that the cloud is profoundly changing the way organizations approach business and IT. It's ushering in huge efficiency and cost gains–and enabling a more agile and flexible framework that taps into the opportunities of the digital age. Yet, many organizations continue to struggle with the question of how to use Software as a Service (SaaS) to maximum advantage, and how to put the necessary safeguards in place. In fact, a good deal of resistance remains about moving major enterprise applications–particularly finance-centric software–into the cloud. A new executive brief from QuinStreet Enterprise, “2015 Enterprise Applications Outlook: To SaaS or not to SaaS,” offers insights into this evolving environment. Among other things, it found notable variations in the way companies and government approach enterprise SaaS, and different outlooks about governance, risk and compliance. The study canvassed 314 IT and business professionals, with nearly three-quarters holding titles of manager or higher within their organization.

 
 
 
 
 
Samuel Greengard writes about business and technology for Baseline, CIO Insight and other publications. His most recent book is The Internet of Things (MIT Press, 2015).

 
 
 
 
 
 

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