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Every cloud has a silver lining?

No doubt that the future of business applications (ERP et al.) will be very much affected by the emerging cloud services. There is plenty of fuss but little facts around the issues of interest to the businesses using applications. General expectations have been primarily towards lower lifecycle costs and also towards easier and faster deployments, less or none upgrade related work, scalability etc.

"First generation cloud" (SaaS) ERP services did fulfil to some extent the demand for lower lifecycle costs as for some reason (increasing market demand?) service fees were reasonably priced. The other expectations were rarely met due to various reasons.

Next generation cloud services are currently taking place as all the major business application vendors have introduced their cloud based solutions and the first client deployments have been performed.

Our recent experiences with the major vendors show that software R&D investments made by the vendors are effectively transferred to the service fees. This can also be seen from the value propositions given on the vendors' web pages, as the cost element has either fully disappeared or has been changed to cover only smaller cost elements.

In general, the market is immature and especially service pricing seems to vary significantly between the vendors. Similarly, there's significant deployment cost variations between the applications and their implementation partners, even between partners of the same application.

The pricing gap is to such magnitude that there's a good reason to assume that either the vendors have made strategic decisions not just to compete, but to take over the whole market or there's severe mistakes made. It will be interesting to see how long it will take the pricing gap to disappear.

All in all, for the businesses in need, there's a good opportunity to make brilliant deals and also benefit the other related elements which seem to take place with the most mature services.

And the usual sales pitch;
We at Akselera are keen on realizing them with You, bringing our experience and knowledge from numerous vendor, system and service selection engagements delivered successfully.

By Akselera | 12 January 2017

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