PAC Predictions 2021: Enterprise applications are moving towards the public cloud
What are we to expect from the public cloud when it comes to enterprise applications? In short – accelerated growth. Enterprises want to make use of modern software functionalities in order to adapt to new conditions, which means they have to invest in the establishment of new business processes and the transformation of current environments.
Cloud usage will be an important component of companies’ digital transformation journey as they usually want to avoid investments in the modernization and operation of data centers and applications. This is why SaaS is used wherever possible and reasonable; otherwise, traditional software is preferably hosted in external data centers – so far mainly at hosting providers, but increasingly also on the public cloud infrastructure of hyperscalers such as Amazon Web Services, Google, and Microsoft.
The operation of ERP systems in public cloud environments is just one of many use cases for cloud computing. In addition, companies will increasingly complement their business software with a number of additional, innovative services from public cloud environments, such as data lakes, analytics, machine learning, and the internet of things.
Companies are aware of the benefits of using cloud infrastructure instead of buying and managing hardware and software, which are:
- A modern platform to deploy the system (ERP or industry-specific software) and innovate processes, using technologies that can make a significant contribution to enabling innovative business processes;
- Greater agility and cost reduction – companies also consider a shift from CAPEX to OPEX, a variabilization of costs, and greater agility in deploying new systems;
- Access to innovative digital technologies such as artificial intelligence, machine learning, and big data analytics;
- Focus on core competencies and innovation;
- Scalability and performance – companies that grow fast require an infrastructure that can be expanded in terms of resources (such as compute power and storage) and performance.
This trend holds growth potential for both software vendors and system integrators, which will be brought in to assist customers with cloud migration and digital transformation.