ERP, supply chain and procurement cloud preferences

By Staff

A cloud deployment business model survey studied cloud network business models based on public networks or private networks, or a combination of both hosting the cloud services placement. For ERP, supply chain management, and procurement the study found that 51% of cloud services buyers preferred a private cloud hosting business model, 24% were indifferent, and 25% preferred a public cloud. This is general info for a variety of cloud hosting business models and not limited to manufacturing. Electronics OEM readers can find EMS providers offering cloud hardware design and manufacturing services here.

Details concerning the three cloud business model types and chart results of the study follow:

Public cloud

Users gain access over the internet, as a service, to standard cloud computing services, applications and storage. This is the most easily scalable cloud business model for both enterprise customers and cloud services vendors. Public cloud services also have the lowest upfront costs so a public cloud is appealing to small-to-medium enterprises.

Private cloud

Private cloud computing services are deployed exclusively for a single organization on that organization’s own local network infrastructure. For private clouds, the organization’s IT departments must evaluate ways existing resources should be reallocated in the cloud to virtualize the business environment.

In comparison to public cloud networks, private clouds provide organizations scope for more advanced security and more customized solutions public clouds don’t offer. But the costs of building a private cloud still involves considerable investment and private cloud business models don’t allow for shorter-term economies that public cloud models can.

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Enterprise private clouds are more likely to be built by large companies than by SMEs because of security concerns and the possibly higher ROI over the long term.

Hybrid cloud

Comprising both models above, hybrid cloud business models include both private (internal) and public (external) cloud services. Putting this into perspective a business might run an application primarily on a private cloud, but rely on a public cloud to accommodate spikes in usage. Hybrid clouds can typically have customized rules and policies governing underlying infrastructure, with tasks allocated to private or public clouds as necessary.

Mission-critical tasks or software applications key to an organization’s well-being like ERP, SCM and purchasing activity might be on an organization’s private cloud, typically, for its enhanced security and availability.

Cloud deployment model – buyer preferences for software


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