Cloud software has evolved over the last decade. Many companies and manufacturers were hesitant to adopt cloud solutions due to perceived risks. Today, many companies are embracing cloud-based solutions to speed time to deployment and adoption, and eliminate long-term capital expenses associated with on-premises software.
Past debates about whether the Cloud was inherently insecure or susceptible to more data breaches prevented many manufacturers from considering enterprise solutions that were not installed within the manufacturer’s firewalls. As more software vendors move to the Cloud and introduce more secure methods for storing and managing information, the perceived security risks are diminishing.
Furthermore, CIOs, CFOs, and other executives are expected to produce immediate results and cloud solutions sold under software-as-a-service (SaaS) models offer a quicker ROI. Instead of paying for the entire solution all at once, companies can pay as they go with monthly or annual subscriptions. This allows them to manage cloud software as operating expenses (OPEX) instead of capital expenses (CAPEX)i —eliminating longterm depreciation of larger investments.
With these financial benefits of SaaS cloud solutions, manufacturers gain faster time to benefits and quicker payback when compared to on-premises solutions. Furthermore, cloud solutions and apps have become ubiquitous. Consumer expectations to subscribe, download, and easily use apps have driven enterprise cloud software vendors to simplify the user experience and deployment model. These factors have led to faster implementations for significantly less money. According to Deloitte Insights, “cost and performance of IT operations have long been a significant driver for cloud adoption. Cost, although still an influence, has become less of a factor over time as the Cloud’s other business benefits have emerged.”ii It’s no longer a question of whether companies will adopt cloud solutions, but rather how fast and broadly they will.