Benefits Of Shifting To The Cloud

Randi Purser

In today’s digital economy, quickly capturing and translating data into valuable insights is an essential aspect of business. For many companies, this presents a challenge, both financially and logistically.

Why pay for software that may be obsolete in just a few years?

Why implement a new software system that is unable to meet shifting business needs in the long run?

Is it possible to integrate existing on-premises software into a more modern, efficient platform?

These are all common questions asked by business leaders today. Luckily, there is an excellent solution to these concerns: cloud computing.

Leverage best practices from market data

Transitioning to cloud software has many benefits, including the ability to obtain data in real-time. Being able to make business decisions quickly based on accurate data can drastically increase a company’s success and competitive advantage.

One instance of this occurred with JK Tyre, India’s leading tire manufacturer. JK Tyre’s success rides on the strength of its over 3,500 dealers and more than 400 field sales personnel. However, non-integrated front-office operations were causing significant information lag and dealer dissatisfaction.

To rectify the problem, the company set out to digitize its front-office operations. Using a cloud platform, the company rolled out a comprehensive portal that provides dealers and sales personnel with clear, real-time transparency into operations. As a result, the company now ranks as the 22nd-largest tire manufacturer in the world, producing 32 million tires a year in 12 manufacturing plants.

Accelerate adoption of new innovations while reducing upgrade efforts

Since cloud technology is hosted by the service provider, automatic updates are installed without the delays that occasionally occur with traditional on-premises software. This agility and flexibility improve enterprise efficiency and create quicker turnaround times for customers.

FRANKA EMIKA is a Munich-based robotics startup on a mission to make robots accessible for everyone. After achieving rapid growth in a short time, FRANKA EMIKA needed to overcome significant IT and process complexities to keep its operations as agile as possible.

By implementing a cloud ERP solution specifically designed for fast-growth businesses, FRANKA EMIKA was able to quickly innovate and react to customer demands in a flexible way. Moreover, the technology enables the company to automate a variety of processes to quickly improve, manufacture, and deliver products that improve people’s lives and help the world run better.

Migrate existing data into a robust cloud platform

When it comes to making the shift to cloud, many businesses are hesitant due to a perceived lack of time and resources needed to migrate an entire complex infrastructure. However, the reality is that cloud adoption increases operational speed, simplicity, and cost efficiency at a faster rate than traditional on-premises solutions.

By 2021, Natura Cosméticos plans to migrate all of its existing on-premises applications to the cloud. Now the company can track customer orders using geoprocessing, integrate with banks in real-time, and save signatures digitally for compliance purposes. This example demonstrates how investment in a cloud platform is a key part of a successful business model because it allows for ongoing improvements using new technologies such as blockchain and artificial intelligence.

Benefit from subscription-based pricing

One of the most notable benefits of switching to cloud is the subscription-based pricing model. This model gives the customer an alternative to making a large upfront investment by choosing whether to renew the contract after the initial term. This generates a higher ROI through a faster time to value and a predictable cost over time.

In addition to cost savings, the subscription model allows for agility during the decision-making process. Whether the company chooses to renew the cloud subscription or pursue an alternate strategy, this model provides the ability to make timely business decisions that are best for the company.

The following graphic highlights some of the key cloud deployment statistics:

Cloud as a strategic growth tool

With relentless technological advancements and innovation capabilities, all enterprises, regardless of size, should consider making the switch to cloud software. With it comes an unlimited potential to improve business outcomes and achieve growth as an intelligent enterprise.

Learn how to overcome the challenges associated with the move to SAP S/4HANA and how to manage your project successfully in our SAP S/4HANA Movement Webinar Series.


Randi Purser

About Randi Purser

Randi Purser is a marketing professional for the SAP Innovation Services and Solutions (ISS) business unit at SAP. A recent graduate of the University of Pittsburgh, Randi uses her creativity and passion for writing to deliver compelling social media and marketing content that showcases how ISS is making innovation real for customers.