Switch To Cloud To Save Cost

Cloud is changing the security equations today, by moving security to the ‘application’ level, rather than at the network level. Veera Swamy Arava, CEO & Director, SAT Infotech, tells us more.

- Aanchal Ghatak

What are the risks and challenges generally associated with multi-cloud environments?

The Industry statistics show us that multi-cloud is pervasive today, with more than 80 percent organisations using multiple cloud providers. Depending on the size of the organisation, challenges around multi-cloud vary largely. For the large enterprises, where multi-cloud is a more relevant discussion today, the typical challenges will be around security, governance, and cost management. Among the SMEs, multi-cloud is yet to make an impact.

What are the factors driving the growth in ERP implementation in cloud?

There are multiple factors that are driving a clear shift to cloud-based ERP systems. In the last one year or so, we have seen an increasing number of our customers preferring a cloud model for their new ERP implementations. I’d say, this is primarily because of the infrastructure cost, and management complexities associated with the on-premise ERP implementations. For instance, in a typical ERP implementation project, the hardware is often oversized to avoid frequent upgrades. As a result, the customer ends up bearing substantial upfront cost. In a cloud, organisations are able to eliminate this upfront investment and move to a more flexible, pay-as-you-use model.

The other critical driver of cloud is the challenges associated with maintaining an on-premise ERP system. This requires investments around new resources and skill sets, especially, in areas like AI and machine learning, which are now very much part of the new ERP modules. Widening skills gap is critical problem in the ERP sector today. Managing an on-premise ERP system involves expensive resources and great efforts. Cloud effectively addresses this challenge for many organizations, especially SMEs.

How is the security awareness around cloud evolving today? How is a player like SAT addressing this aspect?