| | APRIL 20249CIOReviewWhile the connectivity between servers and databases might seem consistent between cloud and on-premises configurations, this isn't always the case. Cloud providers exert stringent control over throughput, potentially affecting overall performance. Enterprises migrating to the cloud could inadvertently counteract the very benefits of a public cloud environment if they need to invest in dedicated resources, thus negating the cost-efficiency advantages initially sought.Refactoring or rebuilding can optimize the ERP system to fully leverage the cloud services and resources, but time and money will be needed to accomplish this. Building to use cloud-native services offer the primary power of clouds: scalability, elasticity, and flexibility.Ensuring compliance with licensing agreements is crucial to avoid legal and financial issues. Many software licenses are based on CPUs, core's, servers, and users. Moving to a completely different infrastructure will impact licenses, and therefore it is paramount to fully engage suppliers and understand the impacts. Maintenance contracts may no longer hold on the cloud and may result in additional costs to terminate existing or potentially unavailable in the new environment.While contrasting the hosting of an ERP system on-premises with its deployment in the cloud reveals several distinctions, certain administrative aspects exhibit a degree of consistency across both settings. Considerations such as capacity management, monitoring, backup, and recovery, as well as data refreshes, for instance, maintain a semblance of similarity. Nonetheless, a common misstep among companies involves assuming that the cloud provider will seamlessly replace the roles performed by seasoned IT data center and cloud experts, potentially leading to unwanted surprises such as system failures. The public cloud significantly departs from other hosting landscapes, boasting near-boundless resources and remarkable flexibility. The focal point transitions from the challenges of optimizing data and application performance to managing sprawl and cost containment. While the migration process might be a one-time event, the ongoing refinement and optimization are perpetual endeavors. In a state of constant evolution, ERP systems mirror the ever-changing nature of cloud platforms, encapsulating the contemporary notion that change itself is the newfound constant.While ERP hosting changes may appear to have a relatively lesser impact on users and operations compared to adjustments in ERP functionalities, it is crucial not to underestimate their significance. The migration process inevitably involves certain periods of downtime, which can lead to reduced productivity and, consequently, potential revenue loss. These potential losses must be acknowledged and factored into the equation to avoid unforeseen complications. Additionally, given that ERP systems encompass numerous departments, adopting a phased approach on a department-by-department basis becomes impractical, further exacerbating the challenge. In order to efficiently tackle and alleviate the potential risks and repercussions spanning across user departments, the service delivery function, and the entirety of the company; meticulous communication, strategic planning, precise scheduling, and flawless coordination take on paramount significance. By focusing on these few considerations, any ERP migration project will have enhanced its prospects of success. Enterprises migrating to the cloud could inadvertently counteract the very benefits of a public cloud environment if they need to invest in dedicated resources, thus negating the cost-efficiency advantages initially sought
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