Should ERP apps be hosted in a public or private cloud?

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This blog has talked a great deal about virtualizing ERP applications or sending them to the cloud. Doing so offers a number of benefits and allows organizations the chance to manage and share information from different devices and myriad locations. There are, however, factors that one must consider before sending their ERP solution to the cloud. 

For example, you may have heard about the public and private cloud, but you might not completely understand the differences between the two. A public cloud is shared with other organizations, and typically owned by a major provider such as Apple, Google, Amazon or Microsoft. Many large-scale and prominent companies have gone with this option with much success.

A private cloud is self explanatory. A company – perhaps a provider of manufacturing software solutions – will host its own offerings for businesses to use. There isn't as much diversity between users, but companies that are storing apps and data in this space tend to have a greater level of security. 

Public cloud users that work with big-name providers may have more options pertaining to what they can do with their applications. On the other hand, private clouds can cater themselves to accommodate the specific needs of a certain company. 

Ultimately, it's up to the company to determine which solution works best. Those that buy Microsoft Dynamics NAV may think hosting in Microsoft's cloud environment is the only way to go, but that isn't always the case. Ultimately, working with an ERP and business software solutions provider and consultant will help organizations determine which is the ideal fit for them. These professionals will examine a company's operations, strengths, weaknesses and needs and find the right environment to host all of their apps and data.

Manufacturing productivity growth could lead to new concerns and needs

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The importance of real time data is crucial in the manufacturing industry, as any discrepancy could set off a chain reaction that could lead to disastrous consequences. To prevent this, data must be properly managed and passed along quickly and efficiently to the appropriate party. However, even that may not be enough as work tends to pile up.

Materials and data have to be efficiently managed in order to ensure they don't run out and that organizations get the most out of them. In a sense, the same goes for people. By scheduling certain actions along the supply chain and sharing that information in real-time, manufacturers can alleviate a number of risks. Keeping everyone on the same page will go a long way toward generating an efficient machine of an organization, which in turn boosts everyone's productivity and increases profitability.

This will become even more pertinent going forward. According to a forecast from the Manufacturers Alliance for Productivity, industrial productivity will increase 2.2 percent this year. This represents a bump from the 2 percent experienced in 2012. Moreover, the number is expected to continue to climb as it is currently projected at 3.6 percent in 2014. 

Daniel Meckstroth, the organization's chief economist, talked about these numbers in a recent statement.

"Despite some austerity measures, there are several reasons to be optimistic about continued economic growth in 2013 and 2014," Meckstroth said.

This is certain to be a concern in Indiana as the industry continues to grow in that area. Scheduling will remain a high priority, whether it's employee hours, manufacturing tasks or deliveries, so finding the right technology to complement this is crucial. An Indiana business management software systems provider will allow manufacturers in the area to obtain the solutions needed for all of their needs.