35 Questions Every CFO Needs To Ask About ERP Software In the Cloud
Cloud Definitions
Let’s get started with the basics. One size doesn’t fit all and fortunately the cloud offers a variety of options that can support your organizational drivers. Cloud models work together, so you can use the right models for different applications in your organization
1. What is cloud computing? At the basic level, “the cloud” or “cloud computing” refers to the method of delivering software, from e-mail to accounting to customer relationship management, to users via the Internet. Public cloud refers to infrastructure comprised of multi-tenant servers. With private cloud services, servers are dedicated to one organization. The term hybrid cloud refers to the combination of public cloud, private cloud or on premises infrastructure services.
2. What is IaaS, Infrastructure as a service? Users run all their own applications, including operating systems, storage and backup on a cloud provider’s infrastructure. The cloud vendor does not supply any operating system license or support, only hardware and connectivity.
3. What is PaaS, Platform as a Service? Users access purchased or internally developed applications that are housed on the cloud provider’s infrastructure with provider managing the operating system, storage, hardware, and networking. The cloud vendor provides the additional layer of operating system and supporting services, to allow the users to focus on supporting their custom or purchased business operating applications.
4. What is hosting? The term hosting “hosting” or “hosted” is commonly associated with ERP and LOB software. In addition to the hardware and operating systems, the cloud provider houses and manages the installation, upgrades and user configurations for the ERP application. The ERP application licenses may either be subscribed to or owned.
5. What is SaaS, Software as a Service? Users subscribe or rent access to the software application functionality over the internet. The software publisher delivers the application to many customers, storing customer application related data on public cloud servers. Also commonly referred to as “on demand.”