Cloud ERP – A Facelift for Your Legacy Systems

We all agree – old doesn’t necessarily mean “bad.” This is particularly true for ERP systems that have been in use for many years. Many of these systems are based on legacy software that has long been integral to company-wide IT and resource management. We are talking about time-tested and proven technology that companies and their IT departments have relied on for years, and it continues to play an important role today.

In this blog, we will explore how to ensure that proven legacy systems keep pace with technological advancements and opportunities provided by innovations. How can technological advancements enhance your existing systems? Can the benefits of old and new systems be combined? Are there integration possibilities or deployment models to increase security and stability? These are the questions we’ll answer in this blog.

Transforming old into the new: What exactly are ERP systems in the cloud?

ERP systems, alongside CRM systems, are among the most well-known and proven legacy systems. ERP systems have always been and continue to be a critical component of internal resource management. These systems are enablers, primarily originating from the 1990s and 2000s when IT evolved from being a sole support function to becoming a significant competitive advantage. Back then, legacy systems were developed to reduce costs, enhance quality and meet market demands.

With traditional on-premises ERP systems, as well as any other on-premises IT infrastructure, the company bears full responsibility for the infrastructure, software, data security and data protection, because these systems are managed and maintained in house.

The role of IT in businesses is continually evolving, which makes its ongoing expansion crucial. This evolution implies that while traditional roles persist, new complementary ones are emerging, and legacy systems remain indispensable despite their age. Today, legacy systems are standard applications in most organizations, fulfilling essential functions and handling processes. These systems are typically modular and interconnected to facilitate data exchange. However, staying innovative and competitive requires keeping these legacy systems up to date and, when necessary, integrating them with newer digital IT solutions. Therefore, the fundamental challenge of digital transformation lies in how these technologies can be integrated and managed efficiently and effectively.

Figure 1: Legacy and digital technologies1

Cloud ERP, as the name suggests, integrates the “old” legacy technology with the “new” digital technology of the cloud. Cloud ERP and SaaS are closely interlinked because cloud-based ERP systems are typically delivered as SaaS solutions, which is why they are often referred to as SaaS ERP. The cloud enables a modern delivery of ERP to:

• Ensure sophisticated security measures, including data protection
• Be able to handle the ever-growing immense volumes of data
• Provide real-time data for projects and decision-making
• Scale resources up and down based on demand to reduce redundant costs and protect the environment
• Minimize downtime and strengthen business continuity
• Keep investments at a minimum, which also minimizes risks
• Reduce time to market
• Outsource responsibilities for updates, maintenance and other repetitive tasks to experts so that you can focus on your core business

This means you can use your ERP system without needing to acquire and manage the necessary underlying IT infrastructure.

Figure 2: Functionality of cloud-based ERPs

Cloud ERP and on-premises ERP in comparison

Security aspects of cloud ERP

As cyber crime continues to rise, both system security and data protection are becoming increasingly critical. As discussed in the previous section, cloud deployment offers advanced security standards to ensure optimal protection.

Cloud deployment is one of the most secure operational models available today, a fact supported by statistics. Research shows that a significant 90% of cyber attacks targeting data theft are directed at on-premises servers2.

The risks to your data extend beyond the World Wide Web. Unexpected events such as natural disasters or internal errors, like accidental data deletion, can occur at any time. When data is lost, it’s not just the information that disappears, but also the control over it. To ensure you can recover from such setbacks, it’s crucial to back up your data regularly and frequently. With Cloud ERP systems, this responsibility is handled by SaaS providers, who manage backups at external locations. This way, you can easily restore your data and quickly resume operations in the unlikely event of a crisis.

Who can benefit from cloud ERP systems?

Cloud-based ERP systems are versatile and can be utilized by businesses of any size and industry because of their ability to adapt to specific needs. However, these systems are especially well suited for:

• SMEs with relatively small IT departments, which often lack the internal resources necessary for the installation, integration and maintenance of ERP systems
• Businesses operating in highly regulated industries
• International companies doing business across several geographic locations and time zones
• Businesses subject to seasonal fluctuations, which frequently need to scale resources up and down based on demand

This can also be applied to various industries:

• Retail
  Retailers, wholesalers and online merchants frequently encounter seasonal fluctuations in demand. To manage this effectively, it is often more resource-efficient to scale up systems during peak periods like Black Friday or Christmas and scale them down during quieter times. Additionally, modern customers expect real-time information on product availability and estimated delivery times.
• CPG
  The food and beverage manufacturing industry is governed by some of the strictest safety standards. A cloud-based ERP system can aid in meeting legal requirements and industry regulations, as well as swiftly and accurately identifying affected batches in the event of a recall.
• Machinery and plant engineering
  Cloud ERP systems enable seamless integration with CAD and CAx software, streamlining data exchange between engineering and other departments. This integration allows for the simulation and analysis of manufacturing processes, leading to enhanced production quality and efficiency.
• Logistics
  Real-time data on transportation and deliveries allows for immediate tracking and management of inventory, orders and shipments, providing enhanced control and transparency throughout the entire supply chain.
• Automotive
  In the automotive industry, cloud-based ERPs are crucial due to the demands of just-in-time production. Manufacturers and suppliers need real-time, accurate information on inventory, production and delivery to plan effectively and avoid bottlenecks or excesses.

Migrate to the cloud with SEEBURGER

SEEBURGER has been SAP-certified since 1995 and holds over 50 individual certifications. These certifications cover a range of capabilities, including connecting SAP ERP systems with pre-built connectors for S4/HANA, as well as integrating other ERP systems in the cloud, hybrid environments or on-premises, such as IFS, IBM and Infor.

Additionally, SEEBURGER has over 15 years of cloud experience with more than 3,000 satisfied customers. The BIS Platform offers flexibility as both an iPaaS solution and a fully managed service. Known for its high scalability and uncompromising security, BIS ensures adherence to data security and confidentiality regulations through regular external audits and certifications.

Run BIS on a public cloud like AWS, or opt for the SEEBURGER Cloud. Our IT consulting services can help lower your operating costs and boost efficiency. Leverage the unique advantages of your chosen cloud solution!

With a SEEBURGER expert in the cloud and ERP integration, you are well prepared for the future of your legacy systems.

Source: https://blog.seeburger.com/cloud-erp-a-facelift-for-your-legacy-systems/