The technical aspect of different delivery methods described in the previous blog post in this blog series of, is of course an essential part of the factors to consider when choosing the right ERP solution for your company. However, what is perhaps even more important to understand is the division of responsibilities between supplier and customer when it comes to the different options. There are major differences between the delivery methods, but there may also be differences within the specific method.
Below Håkan Strömbeck (Senior Industry & Solution Strategy Director at Infor), describes the different ERP delivery methods from a responsibility perspective. The description is made from a general perspective for all option, except for the "multi-tenant" option which is described based on how things work at Infor.
In practice, hosting doesn’t have any significant differences compared with On-Premise. The relationship between customer and supplier is unchanged, with the difference that the customer choose to outsource less or more of the operations to a third party supplier. In an On-Premise setting the customer is responsible for the operating environment in the form of servers databases, security, performance, availability, back-ups, integrations, tests, modifications, patches, upgrades among other factors. From a responsibility perspective when it comes to Hosting, other dimensions needs to be considered compared to On-Premise. All parts of operations that will be outsourced to the hosting supplier needs to be considered and defined, will it just be the operation of the hardware, availability, upgrades and similar responsibilities or more? Once defined, you need to determine how it will be regulated in a contract between the parties. This causes another level of complexity.
Additional level of complexity hosting generates, is related to existing modifications and potential operational disruptions. The complexity around concluding what caused the disruption. Was it the original software, the modification or the outsourcing partner’s way of managing the modification and their specific their responsibilities? In the event that hosting is provided by the ERP provider, there will be one less thing to manage. However, as mentioned in the previous blog “Why you should care about the different cloud solutions?”, Hosting is not really a question of a true cloud delivery, as the customer purchases the license and subsequently the associated services from a third party that happens to be the ERP provider.
The vendor offers a service and general practice is that they assume responsibility for the operating environment, in the form of server databases, security, performance, availability, back-up, bugs and patches. From here onwards it can become somewhat unclear which party is responsible for what, and questions around the suppliers responsibility for integrations arise. Questions such as:
The list of questions go on, as there is several areas where the boundaries around responsibility can be unclear with a single-tenant solution. One could even argue that a single tenant is identical to On-Premise, the difference being it comes with a subscription contract.
In this case, we will take a closer look at how Infor views the division of responsibilities of our Multi-Tentant Cloud ERP solutions:
And, as always, contact ICCG to help provide you with insight and information. Schedule a complimentary consultation to review your questions.