Why You Should Care About The Different Cloud Solutions

As a long-time professional in cloud solutions, I can sometimes be struck by how uniform the information, discussion and debate is about the differences in cloud in the IT industry, whether from journalists, analysts or industry colleagues. Usually speaking in sweeping terms about the cloud and making everything from inaccurate statements to generalizing conclusions based on the cloud description. In this blog post, I want to help you understand the differences in clouds in relation to ERP solutions. It's all about the level of responsibility, agility and security.

The four most used delivery methods

There are four types of delivery methods in today's mode of delivery of ERP solutions, and this also applies to other software solution areas.

• "On-Premise": In this case, it is not a cloud solution at all. The supplier provides the software, which is then deployed and operated by the customer on the customer's infrastructure. The customer can make modifications to the software themselves in cases where it is deemed necessary. Upgrading is usually done in a low-intensity period of several years.

• "Hosting" (Outsourcing): In practice, it is the same arrangement as "on-premise," i.e., the provider provides the software. The customer chooses to add a 3rd party hosting partner responsible for the operation. Depending on the arrangement, hosting can include everything from operation, testing, application management, and development, which means that a certain ambiguity in the boundary can occur. The customer can make modifications to the software themselves in cases where it is deemed necessary. As with on-premise, the upgrade takes place several years apart. Some ERP providers provide this type of service with different degrees of content and call it cloud delivery which is not entirely correct.

• "Single-Tenant" (Private Cloud): The supplier provides a service that includes access to the software and operation. Each customer (tenant) is separated into their version of software and databases. As a rule, the supplier is also responsible for safety, backup routines, and upgrades (with varying frequency). The degree to which the customer can make modifications to the software themselves in cases where it is deemed necessary will vary. In some cases, it is made directly to the code, which causes problems during the upgrades, while in other cases, they are made standalone in so-called "extensions," which should be the general approach. It is also of great importance which provides the tools or platform to build these extensions. Is it the supplier of the ERP, or is it another supplier?

• "Multi-Tenant" (True Cloud): The supplier provides a service that includes software access and operation. Each customer running has its tenant but shares identical (however individually configured) code. The supplier is responsible for security, backup routines and upgrades (with varying frequency), which in Infor's case, occurs once a month. The customer cannot modify either code or databases, but modifications are made exclusively through so-called extensions with tools provided by the supplier or third-party solutions.

And, as always, contact ICCG to help provide you with insight and information. Schedule a complimentary consultation to review your questions.