"Cloud ERP" . . . first let's drop the word Cloud from the name. It’s only a marketing term that is designed to over-simplify a topic that absolutely must be properly understood if one wishes to make good decisions about ERP.

ERP accessed through the Internet is marketed as a turnkey product that makes life easy for ERP users. In one sense this can be true—as it can help relieve the ERP buyer from having to manage ERP hardware and certain aspects of database and ERP software. Other claims about benefits of remotely delivered ERP are at least overstated and more likely wildly inaccurate. Further, the commercial deal is nearly always presented in simple terms with the implication that the details are not important—or worse, the details are fixed and the seller won't negotiate. Specific areas developed briefly in this document and more thoroughly in upcoming blog articles are:

• ERP access options
  • ERP architecture options
  • Who manages ERP
  • ERP access payment options
• Cost control for subscription access
• Commercial terms important to achieve when the buyer depends on another party for accessing critical business systems
• Implementing remotely accessed ERP

So what is the main reason the ERP industry is hyping remotely accessed ERP? Simply put, it's more profitable. And vastly more profitable with a shared ERP application architecture (multi-tenant) and subscription-based payment model. Seller’s ongoing revenue is further enhanced by the insidious nature of a commercial relationship in which the regular deal leaves the buyer with nearly zero commercial control.

Therefore, because of the significantly greater revenue potential over time, there is a large amount of ERP industry smoke and mirrors obscuring the options and means of attaining appropriate remote ERP access cost and terms initially and over time. Further this Cloud ERP hyping has become so pervasive that it's become the sales culture—meaning most of those involved are not aware of their inaccurate statements and claims.

Counter to the self-interest of the ERP industry, there are ways to access the benefits of remotely accessed ERP while not accepting the negative aspects. This is summarized by the following list and each of these will be expanded upon in future blog series.

1. Controlling ERP subscription costs initially and especially over time.
2. FIXING the 100% one-sided commercial terms for ERP access.
3. Cloud ERP implementations—more self-serving hype.
4. What if the Cloud ERP vendor fails? And they all will—no matter their status today.
5. Migrating from multi-tenant remote ERP to single-instance remote ERP.

ERP - Arguably the hardest commercial relationship to escape . . . So get it right at the start.

Information in these articles is based on the experience of over 1000 ERP projects conducted since 1996 in which the ERP buyer's interests and well-being was the sole focus.