The latest study from technology analyst firm Telsyte reveals that 56% of Australian organisations are already using or investigating PaaS to deploy custom software as more seek fit for purpose applications.
“Cost, ease of use and emerging technologies like the Internet of Things and mobile apps are changing the way CIOs think about enterprise applications,” Telsyte Senior Analyst Shayum Rahim says.
“PaaS empowers organisations to create role-based applications customised for business requirements as well as mashups utilising APIs.”
And, Telsyte has found almost a third of organisations are currently using custom, in-house developed software to satisfy a business need, indicating a “latent demand” for PaaS development environments.
The research firm says its ongoing software research also indicates many Australian organisations are moving to cloud-based point solutions, signalling a shift to a “best of breed” usage model for enterprise applications.
“We are seeing a growing wave of cloud-based applications being used as point solutions for everything from HR to expense management, further accelerating the decoupling of the ERP suite as solutions are offered across multiple platforms and devices,” Rahim says.
ERP feature use among enterprises is languishing, according to Telsyte, with the study finding that nearly two-thirds of organisations are using less than half of the features available – and, as many as one third of organisations require further customisation to their existing ERP software, “representing a massive over investment in what is considered to be the core business application”.
With the top two factors for ERP success being easy to use interfaces and flexibility of the ERP system, Telsyte says it believes traditional ERP suites must evolve to compete with the new range of SaaS applications which offer modern UIs and flexible usage models.
Challenges with traditional ERP including high cost, not easy to modify or configure and long implementation times, are all giving organisations reasons to look at SaaS, according to Telsyte, and it believes the new frontier for ERP will be in mobility and the Internet of Things as sensors on everything will transform business processes.
“From machine breakdown prevention and real-time error correction in manufacturing processes to real-time inventory control and predictive replenishment in warehousing and distribution, ERP needs to undergo changes to meet the challenges of digital disruption,” Rahim concludes.