Welcome!

Microsoft Cloud Authors: Andreas Grabner, Stackify Blog, Liz McMillan, David H Deans, Automic Blog

Related Topics: Java IoT, Microservices Expo, Microsoft Cloud, Agile Computing, Release Management , @CloudExpo

Java IoT: Article

This Is Not Just ERP, This Is Two-Tier ERP

ERP now has the chance to come of age

The rise of Big Data and the monolithic systems that are now being built on increasingly cloud-based data models is a reality we cannot ignore.

This reality has popularized discussions relating to the core component mechanics of many firms' IT stacks.

Key among these technologies is ERP, or Enterprise Resource Planning to afford it its full moniker. The term can be taken to be a relatively broad expression as it encompasses software applications that oversee the management of suppliers, customer service, order tracking and all manner of demand and supply-related indicators...

... or to put it more simply, ERP systems look after companies' "systems of record" data.

"Indicators" being the operative word, as key performance indicators (KPIs) are used by organizations to appraise and evaluate the accomplishment and success of a particular business activity in which it is engaged.

So far inside the brief history of Enterprise Resource Planning there haven't been too many upsets. Most of the mega brand IT vendors from IBM to HP to SAP to Oracle all have a finger in the ERP pie and Microsoft is even in there too with its Dynamics product.

But for CIOs and the software application developers who connect the synaptic nerves of new deployments, a new subset of ERP (or extension perhaps) is surfacing.

SaaS-focused business management software company NetSuite is creating something of a new paradigm in the ERP space by rolling out a "two-tier" version of ERP that integrates with Oracle. The new offering works to amalgamate on-demand services with on-premise transaction systems.

The two-tier model is intended to allow customers to preserve on-premise ERP investments in Oracle (or indeed in other systems), while equipping global subsidiaries with what is promised to be a more flexible cloud-based ERP/financials system. The end result (in theory) then gives headquarters the real-time visibility it needs, at a lower price.

Given the heavyweight maneuverings going on over at SAP inside its ERP mothership, it is interesting to see NetSuite take what appears to an arguably more deft approach to coupling technologies in this space to augment and expand upon current offerings rather than simply trying to compete on the basis of speed, processing power, performance and general all round rocket power.

The firm is essentially bringing its OneWorld and SuiteCloud Connectors to Oracle and using connectivity technologies from IBM Cast Iron, Informatica, Dell Boomi, Celigo and Pervasive Software.

The concept behind the two-tier ERP twist is that it (in theory) enables subsidiaries to tailor ERP to their own special needs and support their local accounting requirements. It is also supposed to ensure that a remote subsidiary doesn't end up with a burdensome, hard-to-maintain on-premise ERP deployment.

Here's the developer proposition: keep the investment in the existing Oracle E-Business Suite system at the corporate level, but empower subsidiaries and divisions to innovate with a second ERP system that gives them more agility and better total cost of ownership.

NetSuite asserts that this two-tier approach has the advantage of being able to cut deployment time (and costs too) instead of installing on-premise ERP in each smaller division or subsidiary company.

Of course, NetSuite's major shareholder is Larry Ellison so it is also interesting to see the company playing this subtle two-tier approach rather than the usual Oracle "absorb, acquire, assimilate" approach.

Craig Sullivan, VP & GM of international at NetSuite, argues that a new era is dawning in this space and that ageing ERP is a drag on business agility. "The web enables business to go global instantly - reaching many millions of customers in a year or two, whereas it used to take a decade or more to make that type of progress."

Sullivan points to Groupon as an example of the kind of disruption that the Internet enables. The "fastest-growing company in history" grew to revenues of $700+ million in 2010 from $30 million in 2009 - a stunning growth rate of 2,241%.

"This would have been unthinkable just five years ago," says Sullivan. "With the dramatic growth in emerging markets, businesses are looking to quickly tap opportunities in the space of months, not years - before their competitors get there. Outdated ERP, unable to react to and take advantage of change, restricts the agility that is crucial in our increasingly online world."

This new (and it is comparatively) new approach to ERP comes at an interesting time. NetSuite contends that modern demand for real-time information and "boundless flexibility" point to just one answer: the cloud.

As cloud-based intelligently managed and intelligently separated (let's be polite here and say "tiered" rather than separated) ERP now has the chance to come of age, will we grasp this opportunity inside corporate enterprises? Will new cross-functional workflows and reporting processes come about as new sales channels are added and firms are suddenly able to enter new markets as they improve collaboration between internal and external systems?

NetSuite (and Larry Ellison) thinks so. Don't dismiss it without proper analysis.

This post was first featured on CIO Enterprise Forum.

More Stories By Adrian Bridgwater

Adrian Bridgwater is a freelance journalist and corporate content creation specialist focusing on cross platform software application development as well as all related aspects software engineering, project management and technology as a whole.

Comments (0)

Share your thoughts on this story.

Add your comment
You must be signed in to add a comment. Sign-in | Register

In accordance with our Comment Policy, we encourage comments that are on topic, relevant and to-the-point. We will remove comments that include profanity, personal attacks, racial slurs, threats of violence, or other inappropriate material that violates our Terms and Conditions, and will block users who make repeated violations. We ask all readers to expect diversity of opinion and to treat one another with dignity and respect.


@ThingsExpo Stories
No hype cycles or predictions of zillions of things here. IoT is big. You get it. You know your business and have great ideas for a business transformation strategy. What comes next? Time to make it happen. In his session at @ThingsExpo, Jay Mason, Associate Partner at M&S Consulting, presented a step-by-step plan to develop your technology implementation strategy. He discussed the evaluation of communication standards and IoT messaging protocols, data analytics considerations, edge-to-cloud tec...
"When we talk about cloud without compromise what we're talking about is that when people think about 'I need the flexibility of the cloud' - it's the ability to create applications and run them in a cloud environment that's far more flexible,” explained Matthew Finnie, CTO of Interoute, in this SYS-CON.tv interview at 20th Cloud Expo, held June 6-8, 2017, at the Javits Center in New York City, NY.
IoT solutions exploit operational data generated by Internet-connected smart “things” for the purpose of gaining operational insight and producing “better outcomes” (for example, create new business models, eliminate unscheduled maintenance, etc.). The explosive proliferation of IoT solutions will result in an exponential growth in the volume of IoT data, precipitating significant Information Governance issues: who owns the IoT data, what are the rights/duties of IoT solutions adopters towards t...
With the introduction of IoT and Smart Living in every aspect of our lives, one question has become relevant: What are the security implications? To answer this, first we have to look and explore the security models of the technologies that IoT is founded upon. In his session at @ThingsExpo, Nevi Kaja, a Research Engineer at Ford Motor Company, discussed some of the security challenges of the IoT infrastructure and related how these aspects impact Smart Living. The material was delivered interac...
The Internet giants are fully embracing AI. All the services they offer to their customers are aimed at drawing a map of the world with the data they get. The AIs from these companies are used to build disruptive approaches that cannot be used by established enterprises, which are threatened by these disruptions. However, most leaders underestimate the effect this will have on their businesses. In his session at 21st Cloud Expo, Rene Buest, Director Market Research & Technology Evangelism at Ara...
When growing capacity and power in the data center, the architectural trade-offs between server scale-up vs. scale-out continue to be debated. Both approaches are valid: scale-out adds multiple, smaller servers running in a distributed computing model, while scale-up adds fewer, more powerful servers that are capable of running larger workloads. It’s worth noting that there are additional, unique advantages that scale-up architectures offer. One big advantage is large memory and compute capacity...
SYS-CON Events announced today that IBM has been named “Diamond Sponsor” of SYS-CON's 21st Cloud Expo, which will take place on October 31 through November 2nd 2017 at the Santa Clara Convention Center in Santa Clara, California.
In his session at @ThingsExpo, Eric Lachapelle, CEO of the Professional Evaluation and Certification Board (PECB), provided an overview of various initiatives to certify the security of connected devices and future trends in ensuring public trust of IoT. Eric Lachapelle is the Chief Executive Officer of the Professional Evaluation and Certification Board (PECB), an international certification body. His role is to help companies and individuals to achieve professional, accredited and worldwide re...
With major technology companies and startups seriously embracing Cloud strategies, now is the perfect time to attend 21st Cloud Expo October 31 - November 2, 2017, at the Santa Clara Convention Center, CA, and June 12-14, 2018, at the Javits Center in New York City, NY, and learn what is going on, contribute to the discussions, and ensure that your enterprise is on the right path to Digital Transformation.
New competitors, disruptive technologies, and growing expectations are pushing every business to both adopt and deliver new digital services. This ‘Digital Transformation’ demands rapid delivery and continuous iteration of new competitive services via multiple channels, which in turn demands new service delivery techniques – including DevOps. In this power panel at @DevOpsSummit 20th Cloud Expo, moderated by DevOps Conference Co-Chair Andi Mann, panelists examined how DevOps helps to meet the de...
Amazon started as an online bookseller 20 years ago. Since then, it has evolved into a technology juggernaut that has disrupted multiple markets and industries and touches many aspects of our lives. It is a relentless technology and business model innovator driving disruption throughout numerous ecosystems. Amazon’s AWS revenues alone are approaching $16B a year making it one of the largest IT companies in the world. With dominant offerings in Cloud, IoT, eCommerce, Big Data, AI, Digital Assista...
SYS-CON Events announced today that CA Technologies has been named "Platinum Sponsor" of SYS-CON's 21st International Cloud Expo®, which will take place October 31-November 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA. CA Technologies helps customers succeed in a future where every business - from apparel to energy - is being rewritten by software. From planning to development to management to security, CA creates software that fuels transformation for companies in the applic...
Artificial intelligence, machine learning, neural networks. We’re in the midst of a wave of excitement around AI such as hasn’t been seen for a few decades. But those previous periods of inflated expectations led to troughs of disappointment. Will this time be different? Most likely. Applications of AI such as predictive analytics are already decreasing costs and improving reliability of industrial machinery. Furthermore, the funding and research going into AI now comes from a wide range of com...
Multiple data types are pouring into IoT deployments. Data is coming in small packages as well as enormous files and data streams of many sizes. Widespread use of mobile devices adds to the total. In this power panel at @ThingsExpo, moderated by Conference Chair Roger Strukhoff, panelists looked at the tools and environments that are being put to use in IoT deployments, as well as the team skills a modern enterprise IT shop needs to keep things running, get a handle on all this data, and deliver...
Internet of @ThingsExpo, taking place October 31 - November 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA, is co-located with 21st Cloud Expo and will feature technical sessions from a rock star conference faculty and the leading industry players in the world. The Internet of Things (IoT) is the most profound change in personal and enterprise IT since the creation of the Worldwide Web more than 20 years ago. All major researchers estimate there will be tens of billions devic...
SYS-CON Events announced today that Cloud Academy named "Bronze Sponsor" of 21st International Cloud Expo which will take place October 31 - November 2, 2017 at the Santa Clara Convention Center in Santa Clara, CA. Cloud Academy is the industry’s most innovative, vendor-neutral cloud technology training platform. Cloud Academy provides continuous learning solutions for individuals and enterprise teams for Amazon Web Services, Microsoft Azure, Google Cloud Platform, and the most popular cloud com...
SYS-CON Events announced today that Enzu will exhibit at SYS-CON's 21st Int\ernational Cloud Expo®, which will take place October 31-November 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA. Enzu’s mission is to be the leading provider of enterprise cloud solutions worldwide. Enzu enables online businesses to use its IT infrastructure to their competitive advantage. By offering a suite of proven hosting and management services, Enzu wants companies to focus on the core of their ...
We build IoT infrastructure products - when you have to integrate different devices, different systems and cloud you have to build an application to do that but we eliminate the need to build an application. Our products can integrate any device, any system, any cloud regardless of protocol," explained Peter Jung, Chief Product Officer at Pulzze Systems, in this SYS-CON.tv interview at @ThingsExpo, held November 1-3, 2016, at the Santa Clara Convention Center in Santa Clara, CA
SYS-CON Events announced today that GrapeUp, the leading provider of rapid product development at the speed of business, will exhibit at SYS-CON's 21st International Cloud Expo®, which will take place October 31-November 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA. Grape Up is a software company, specialized in cloud native application development and professional services related to Cloud Foundry PaaS. With five expert teams that operate in various sectors of the market acr...
SYS-CON Events announced today that Ayehu will exhibit at SYS-CON's 21st International Cloud Expo®, which will take place on October 31 - November 2, 2017 at the Santa Clara Convention Center in Santa Clara California. Ayehu provides IT Process Automation & Orchestration solutions for IT and Security professionals to identify and resolve critical incidents and enable rapid containment, eradication, and recovery from cyber security breaches. Ayehu provides customers greater control over IT infras...