Cloud ERP systems

Penetration

Cloud services are gaining popularity around the world. According to the Gartner^[1] report, ]cloud technologies will become the main focus of the ERP market for the next 5 years.

In a survey conducted by Gartner analysts in 2014, companies with annual income from $10 million to $10 billion from North and Latin America, countries, Europe the Middle East and Africa, as well as countries of the Asia-Pacific region took part.

Plans to adapt cloud ERP systems

Gartner, 2014

Including 2% of organizations already using cloud ERP, 47% of companies surveyed plan to transfer key ERP systems to the cloud over the next 5 years. Analysts believe that this figure is due to the fact that the requirements of these companies for ERP are reduced to administrative functions such as finance, HR management and purchase management, so working from the cloud is optimal for them.

However, about 30% of companies, on the contrary, do not plan to transfer their ERP system to the cloud in the foreseeable future. These are mainly production enterprises. It is worth noting that most companies planning to use ERP systems from the cloud will do this in the near future, and only 4% intend to switch to the cloud-based enterprise resource planning system no earlier than in 5-10 years.

Advantages and disadvantages

The model allows organizations not only to significantly reduce the initial cost of hardware that supports ERP health, but also seriously simplifies the system implementation process itself. The structure of payment for cloud systems is also different from on-premium solutions. Organizations, as a rule, pay only for an annual subscription to the ERP service from the provider, while the integrated version requires a one-time payment of a large amount. In the case of a private cloud, savings can be achieved by reducing the cost of server hardware and optimizing its operation.

A 2013 study by Panorama Consulting^[2]calls into question Gartner's optimistic forecasts for a massive transition to cloud ERP systems. According to the survey, the vast majority of organizations do not currently use cloud or SaaS ERP systems (85%). Compared to 2012, researchers even noted a decrease in the popularity of using ERP systems using the SaaS model or from the cloud: 15% in 2013 versus 26% in the previous one.

The main reasons why companies do not use cloud technologies are "lack of knowledge about cloud offerings" (45%) and "information security risks" (30%).

When asked what percentage of funds were saved by implementing cloud services, the majority of respondents (54%) answered that the savings ranged from 0 to 40%, and only 2% admitted that the amount of savings reached 80% or more

Indeed, along with undeniable advantages, cloud systems have a number of disadvantages. First of all, this is insufficient reliability. data storage Despite the assurances of providers of the absolute reliability of cloud services, not all company leaders trust, for example, the storage of financial and tax statements on servers outside the company.

Another cloud vulnerability that is curbing the spread of cloud ERP is dependence on the stability of the Internet connection. If the Internet channel stops working for some external reason, any actions in the system will become impossible. However, now a stable Internet channel is a necessary condition for the operation of absolutely the entire IT infrastructure, and, as a rule, companies try to protect themselves as much as possible from various failures.

Obviously, there are both cons and pros in the cloud model, and each company decides for itself where the advantages of the "cloud" end and the disadvantages begin. It is certain that the cloud trend will be one of the strongest in the global ERP ERP systems market and beyond 2014.

Global market

2026:5 Top Trends in the Cloud ERP systems

Developers of cloud platforms ERP (enterprise resource planning systems) for the financial sector are actively introducing new functions based on. artificial intelligence Such tools provide additional automation, enhanced analytics, and improved efficiency. As a result, organizations can reduce costs, optimize operations and reduce the burden on employees. At the end of February 2026, the company Gartner named five main trends in the cloud ERP market, including those related to AI.

1. Composible ecosystems

New ERP platforms enable organizations to build and modify their financial systems with unprecedented flexibility. The use of cloud resources eliminates the need to purchase expensive own equipment and pay for the services of technicians. Cloud providers provide a high level of protection, regular updates and automatic backups. Companies can increase or decrease computing power based on current tasks and business needs. At the same time, secure access to financial data is provided for employees from anywhere in the world with an Internet connection.

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Фото: Freepik

In the past, many ERP products had a "monolithic" architecture. By contrast, today's cloud ecosystems provide flexibility with minimal code usage and modular composibility. This allows finance departments to implement new opportunities much faster, moving in step with the changing market environment, says Mike Helsel, senior research director at Gartner.

2. Intelligent process automation

We are talking about the use of machine learning and agent AI. Such tools provide an opportunity to rethink traditional routine tasks, including transaction processing, document formation, risk analysis, etc. Financial professionals see an up-to-date picture of cash flows, assets and liabilities at any given time, which improves decision-making. As a result, finance staff can focus on strategic priorities.

3. AI Trust, Risk and Safety Management (AI TRiSM)

The introduction of AI TRiSM tools is necessary to protect against new types of fraud and threats from insiders, as well as to comply with regulatory requirements. At the same time, AI algorithms can be used to detect anomalies, continuously monitor operations and maintain audit logs in real time.

4. Adaptive Analytics

Next-generation systems provide financial professionals with natural language dialog interfaces and context-sensitive dashboards that quickly translate large amounts of data into understandable and useful results. Through this, organizations can improve their performance and reduce costs.

5. AI-based planning and forecasting tools

These tools provide scenario modeling, predictive analytics, and personalized dashboards to provide useful information for risk management and business planning. AI helps the company increase flexibility by allowing it to respond more quickly to market changes.

Overall, Gartner believes that the adoption of AI-enabled cloud ERP platforms will expand rapidly. By 2027, 62% of organizations' spending on cloud ERP systems is expected to be directed to AI-enabled solutions. For comparison, in 2024 this figure was 14%.^[3]

2020: Global Cloud ERP Systems Market Reaches $45.3 Billion

The volume of the global market for cloud enterprise management systems (ERP) at the end of 2020 reached $45.3 billion, analysts at MarketsandMarkets calculated. They did not compare the costs of such decisions with 2019, but announced an increase that was partly caused by the COVID-19 coronavirus pandemic.

In MarketsandMarket terminology, cloud ERP systems mean services that companies use to manage their daily business processes, such as finance and accounting, project management, procurement, sales and marketing, and customer relationship management (CRM). ERP integrates all of these processes into one comprehensive system to optimize the various business processes and information within the organization.

The cloud ERP solution offers a centralized system that supports multiple functions across multiple business units and provides backup and disaster recovery capabilities.

The study lists several factors contributing to increased spending on cloud ERP systems:

• growing demand from companies for tools to improve operational efficiency and streamline business processes;
• Increasing adoption of cloud solutions
• Pandemic COVID-19, in which business began to resort to the tools of remote labor organization of employees.

The volume of the global cloud ERP systems market reached $45.3 billion in 2020

According to experts, most ERP platforms include modules for managing stocks and supply chains, and in a difficult epidemiological situation, many manufacturers also turned to specialized suppliers. A similar situation is observed in the Asia-Pacific region, the countries of the Middle East and Latin America. COVID-19 has helped modern ERP systems reach their full potential by expanding their functionality to support remote work, the study said.

The following companies were named the largest manufacturers of cloud ERP systems by analysts:

• Oracle;
• Microsoft
• SAP;
• IFS;
• Infor;
• Sage Software;
• Workday;
• Plex System;
• Ramco System;
• Epicor;
• Acumatica;
• Deltek;
• Unit 4;
• Syspro;
• QAD Inc;
• IQMS;
• MIE Track Pro;
• Genius Solutions;
• OpenPro;
• Global Shop Solutions.

The study notes that for cloud ERP, initial investments are usually much less, since in this case you do not have to buy your equipment - you just need to configure the software and start working with it via the Internet. Maintenance of the IT infrastructure falls entirely on the supplier's shoulders - he monitors the functioning of the systems and is responsible for the safety of your data. This approach allows you to free up the company's resources and direct them to business development and growth.

Using Cloud ERP Systems in North America (by Industry)

Over time, cash savings only increase and become more noticeable. According to the study, for companies with a staff of 100 people, the total cost of ownership (TCO) of cloud ERP systems for 4 years is 50% lower than the cost of ownership of local ERP solutions.

Local enterprise resource planning systems require a large initial cash injection to purchase equipment and deploy IT infrastructure. Moreover, such solutions continue to "pull out" funds during operation: the money goes to control and support the operability of the hardware and software parts.

According to analysts, the global cloud ERP systems market will grow by 17.4% per year and exceed $101 billion by 2025.^[4]

2011: SaaS ERP market size to grow to $4.3 billion - Gartner

According to Gartner forecasts, the SaaS ERP market size will grow from $1.9 billion in 2011 to $4.3 billion in 2016, showing growth of 17.3% on average for the year. Later data from IDC^[5]released in July 2014, indicate that the public SaaS ERP market alone reached $10.78 billion in 2013, accounting for 24% of the global public cloud market (the average annual growth rate until 2018 of this segment will be equal to 18%).

Today, cloud solutions as an alternative to traditional implementation are offered by most of the largest ERP vendors:

• SAP offers a cloud version of the ERP system called SAP Business ByDesign. The solution was presented in 2010 and is now used by about 1000 companies. It consists of a financial unit, an HR system, sales, purchasing and supply management unit.

• Oracle ERP Cloud Service focuses on financial and purchasing functions such as planning and budgeting. Since 2004, the solution has entered the market, at the moment it is used by about 300 companies.

• Microsoft announced the possibility of leveraging the spirit of its ERP systems (Dynamics GP 2013 and Nav 2013) on Microsoft's Azure cloud platform in 2013. And in 2014, the company introduced a new version of its ERP system for medium-sized businesses Microsoft Dynamics NAV 2013 R2, which can be installed both in the local infrastructure and in the Microsoft Azure cloud (the second option can reduce costs at the initial stage of solution implementation).

We add that, according to Panorama Consulting according to the results of 2013^[6], among users of the Microsoft Dynamics line 29% of organizations have already used ERP from the cloud, among Oracle clients there were 28%, among SAP clients - 18%.

However, companies that offer users solutions exclusively according to the SaaS model are considered the leaders in the cloud ERP systems market. This is due to the fact that their offers appeared on the market earlier, precisely as an alternative to complex integrated systems from large vendors. For example, the American company NetSuite offered its first ERP system according to the SaaS model back in 1998 (then under the name NetLedger). Basically, the offer was interesting to small and medium-sized companies, which were not suitable for the price. Today, NetSuite is the leader in enterprise management programs offered under the SaaS model. In 2009, company representatives noted that the number of their customers approached 7000.

Along with NetSuite, Acumatica is showing growth. This is a Russian developer of cloud ERP solutions, Acumatica conducts all research and development in Russia today. However, its product is not presented on the Russian market - the company is focused on working with foreign customers. Acumatica was founded in 2007 and is the fastest growing provider of flexible cloud ERP solutions for small and medium businesses.

Acumatica's range of solutions includes products for financial management, sales management, customer base management, and project management. The company's own platform, Acumatica Studio, provides independent vendors and OEM partners with fast and cost-effective development tools and integrate cloud applications. Acumatica products are distributed through a global network of partners.

Also popular cloud ERP solutions are offered by Plex Systems, Workday, Salesforce.

Russian market

The global cloud ERP systems growing and developing. We can say about the Russian market that here - as always, there are features and differences from global trends. Slowly but surely cloud ERPs are gaining popularity in Russia. Cloud versions of their systems, one after another, began to be presented by large Russian ERP development companies.

In 2010, a SaaS ERP system appeared in Russia - INFIN.Online. " The solution covers a full range of traditional business processes. The program carries out commodity logistics, personnel registration of employees is drawn up, accounting is kept according to the simplified and general taxation systems, payroll is calculated. According to company representatives, all data is protected and securely encrypted via the SSL crypto protection protocol. The cost of accessing the system is, depending on the version, from 7 to 15 thousand rubles per year (for one user).

Compass, with the support of IBM, has developed an infrastructure solution for large and small businesses - Compass-Cloud. In April 3013, the system was introduced to the market. The cloud presents all the main modules of the program: production management, finance, document management, warehouse, personnel management.

As for the largest Russian ERP vendor, 1C, many franchisees of the company (for example, First BIT, 1C-Rarus, Rosintegra) have long been offering their own versions of cloud solutions on this platform.

We add that in 2013 Microsoft and 1C agreed on a strategic partnership and announced that soon the accounting system 1C: Enterprise can be used as a service from the Windows Azure cloud. At the same time, the company launched the 1cfresh.com website, its own solution for cloud access to platform products.

The question of competition between their own SaaS service and the interests of numerous partners in the company was decided as follows: you can subscribe to the service only by receiving an invitation code from one of the 1C partners. Partners can set their prices and earn interest on subscription fees, as well as earn on support services and configuration settings.

Galactica Corporation has released a cloud version of the material property management system for regional municipalities. To date, approximately 14 municipalities have already connected to it. The system works with open information, so customers have no concerns about privacy. The company sees the prospect in offering ERP systems from the cloud to universities.

Suppliers and integrators recognize that ERP systems in the cloud are taking root in the Russian market, but so far with difficulty. This opinion is shared, for example, Dmitry Chernykh, Chairman of the Board of the Galaxy Corporation.

is that if the company has already deployed the system on its site, the transition to the cloud is fraught with costs, the return of which is not obvious. In addition, enterprises are afraid to post their important data in public clouds. Nevertheless, we are moving in this direction, but we are trying to transfer not the entire ERP system to the cloud, but its individual modules, "Dmitry Chernykh explained his thesis

Although cloud technologies cannot be called completely new, in the field of ERP they are not yet used as widely as in other areas, agrees Efim Fish, director of business development at Microsoft Dynamics AXISops Consulting (Tops Consulting). According to him, this is due to the fact that ERP systems usually contain the most important data for the company, and customers see certain risks in using cloud technologies associated with ensuring security and data availability.

Cloud versions may be in demand by businesses that are not afraid of violating data privacy. The rest are not yet ready to post valuable information on remote servers third-party companies, IT companies admit. To a greater extent, ERP systems in the cloud attract Russian medium and small businesses, large ones are very limited, experts add. " In IT Epicor noted that they do not see high demand for ready-made SaaS ERP in Russia, as, for example, USA in other countries.

The company "1C" TAdviser said that in mid-2014 there were few clients using ERP in full-fledged cloud technology, more often they use elements of cloud technologies in their own or leased data centers - there are a lot of such examples for the ERP system "1C: Manufacturing Enterprise Management." Some customers have announced plans to move to using the ERP system entirely in the cloud within a few years.

See also

ERP systems (global market)

Enterprise Management Systems (Russian ERP Market)

Top ERP systems Market Trends (Russia)

ERP on the tablet screen

ERP systems: concept, functions, selection and implementation features

Notes