On-Premise ERP Vendors: Your partners are moving to cloudier pastures
Recently at the SuiteCloud 2010 event, NetSuite made a number of announcements regarding a number of deals they’ve recently linked with major SI, accounting and outsourcing firms.
Genpact, the GE spinoff, has made a big splash over the years bringing back office BPO (business process outsourcing) to the world. It was announced that Genpact will create a new BPO practice solution around NetSuite cloud applications that will cater to mid-market and larger firms.
Wipro, one of the world’s largest outsourcers announced that they were building a NetSuite practice focused on NetSuite technologies.
Hein & Associates LLP, a top 50 accounting and tax firm, announced that they too were building out service offerings around NetSuite applications.
Why is this shift to web-based ERP solutions occurring? System integrators and outsourcers understand that they need to find lower cost solutions for their clients. These same firms are also watching their clients move to web-based ERP solutions and want to not only cash in on this trend, but to also be perceived as potential market leaders in the space. Similarly, these service providers get the economic advantage true web-based ERP solutions possess over on-premise applications, signaling a shift in the market preferences of clients.
On-premise providers that previously dismissed cloud applications as a phase or fad should rethink their mindset. The service firms that support and enlarged the markets for those on-premise solutions are now moving on to something web-based which is more market revelant and more economically attractive to clients/customers. The service ecosystem is changing and the on-premise solution providers won’t be able to stop it.
I think this change over is to provide a better ERP Solutions.