Despite the high cost of on-premise ERP systems, some companies are reluctant to move their ERP to the cloud. The main reason is that the migration process may appear to be difficult, and the storage and usage of important data in the cloud may be potentially dangerous.
A list of potential issues associated with ERP cloud migration would include:
- the migration cost;
- the issues associated with the division of responsibilities between the customer, the executor, the provider and the vendor;
- it is not possible to move big chunks of code as is; you will need to rewrite, or at least 'wrap' legacy code
- safety and reliability;
- usability (including the operational speed and the possibility of virtual machine overload).
- integration costs of a hybrid cloud system [which is what firms should aspire to]; with the remaining legacy/ERP or client server system that is being only partially removed to the cloud.
Some experts also add the following risks to the list:
- the risk of incorrect database backup system settings;
- the risk of incorrect load scheduling for a cloud system (e.g., if during the initial stage of system development the customer choses a sizing which is much lower than required it results in improper selection of vCPU and RAM);
- the risk of incorrect workload distribution.
In terms of implementation, one doesn’t need to purchase extra equipment in order to move the system. To adapt to business specifics you only need to change the settings of the existing cloud solution according to the demands of your enterprise.
Among the basic security and reliability threats for cloud ERPs we can include the following:
- The risk of unauthorized access due to poor user discipline (password disclosure, visiting of unreliable websites).
- The risk of cyber-attacks on the software. Any operating system is vulnerable in itself, as well as its modular components and network protocols. For this reason additional security measures are needed.
- Potential risk of attacking the cloud. The quality of defence against the attack depends on the service provider and the protection systems that have been set.
- The risk of interrupting the company’s work because of a disconnection.
- The risk of a control system breach and attacks on a hypervisor.
The important fact is that there are certain ways to minimize the risks, for instance, by means of a dedicated VLAN, differentiated access permissions to a virtual data center, vGate, and vShield EDGE.
There is also another issue which is more of a drawback, rather than a threat. Currently, cloud ERP systems do not allow proper monitoring of each and every user’s work due to the incomplete functions of log tracking, broadcasting and displaying of warning messages.
All of these risks can be mitigated and resolved. It takes precise planning, a good partner, and a detailed methodology.