Clients First USA
Clients First knows their software, but they are also astute business people, and they really understand manufacturing and distribution in particular.
Jimmy Witcher, COO, Merrick
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‘Industry Insights’ Category

Virtualization vs. Cloud Computing

Friday, February 3rd, 2012

virtualization

How Cloud Computing or Hosting compares to Virtualization

Virtualization and cloud computing are different approaches to solving the problem of maximizing the use of available resources. Virtualization is one physical computer pretending to be many computing environments. Cloud computing is many different computers pretending to be the one computing environment.

The flexibility of virtualization makes it a great match for cloud computing. Cloud computing can be defined based on the virtual machine containers created with virtualization. Virtualization can be used as the basis in cloud computing. Cloud computing is an approach for the delivery of services. Virtualization is one possible service that could be delivered.  Most Cloud Computing, Software as a Service (SAAS) providers and hosting companies use virtualized servers due to their more cost effective properties.  Here is the comparison:

Virtualization

  • Single user access to multiple physical devices. In other words, a single computer controls multiple machines or one computer utilizes multiple computers to analyze a database.
  • Run multiple applications on each server reducing the number of servers companies need to purchase and manage
  • Consolidate servers
  • Support more users per piece of hardware
  • Deliver applications
  • Run outdated line of business software on outdated operating systems via a virtual server
  • Run applications faster
  • Provides more servers on the same hardware
  • Fits best larger corporations requiring little downtime and airtight security

Cloud Computing

  • A collection of computers and servers that are publicly accessible via the internet that saves labor hardware and power costs
  • Software you use is stored on servers and accessed via the internet
  • Cheaper than dedicated physical resources connected to a personal computer or network
  • Software is still available for others to use if a computer crashes
  • Provides measured resources while paying for what you use.
  • Smaller businesses profit more

ERP Cloud Vendor–Which SaaS Solution is for you

Friday, June 3rd, 2011

ERP Cloud Vendors are appearing almost daily, how to choose?

There are now probably 25+ viable vendors who sell their software ‘in the cloud’ and who claim to be ERP Cloud Vendors.  Now the terminology can be confusing and I wrote about what each means here.

ERP Cloud Vendor – Which to look at?  My personal opinion is you really want to look at ERP Cloud Vendor solutions that are built as true ‘multi-tenant’ models.  This means that one instance of the software can host multiple customers.  There is a reason why a dedicated web server hosting is $100+/month and a ‘web site’ hosting service is $7/month or so.  This is because one server can host 100 or more websites, but a dedicated server, can only support one customer.

Many traditional premise based solutions from the big players like Sage, SAP or Microsoft, can be ‘hosted’ and can even be purchased in the ‘monthly per user per month’ pricing model.  However, only a handful are true multi-tenant and not some premise solution just running on a remote server.

At Clients First, virtually all of the solutions we sell can be purchased in a ‘saas’ model and we have clients on nearly all products running ‘in the cloud.’  However, relative to customers looking for the true economies of scale benefits of Multi-Tenant, we generally recommend either SAP Business By Design or Epicor Express as the ERP Cloud Vendor of choice.  Epicor Express being stronger for manufacturer’s and Business By Design stronger for distributors and professional services companies. 

(more…)

SaaS, Hosted or Cloud…What’s the Difference

Wednesday, May 25th, 2011

What really are the advantages and disadvantages to each of these deployment methods?

How are they defined?  What do they mean?  Clients First has recently joined the ERP Software Blog which is an alliance of Value Added Resellers (VAR’s) that post useful blog posts on one central site.  We just uploaded a new posting on this topic right here:

http://www.erpsoftwareblog.com/2011/05/cloud-saas-and-hosted-whats-the-difference/

Title: SaaS, Hosted or Cloud...What's the Difference

Oracle–Yet another major failed project

Tuesday, May 24th, 2011

Well it’s that time of year.  It’s been a while since we have seen an ERP train wreck spelled out so publicly.  This article recently appeared in PC World:

http://www.pcworld.com/businesscenter/article/228412/oracle_sued_by_university_for_alleged_erp_failure.html

I don’t want to completely take sides or a make a judgment here as Oracle has yet to state their side of the story and their truly is usually two sides to every story.

That being said, we constantly compete with vendors who claim to use some fancily named methodology and a quarterly quota driven salesperson paints a very rosy picture.  However, once the deal is signed, checks exchange hands and Champaign is uncorked, reality sets in.

From the little I see here, it sounds like the real breakdown wasn’t the software so much as the management of the implementation and quality of the consultants.  I’d also be willing to bet there were significant issues with the client in terms of dedicating the appropriate resources and they probably had the impression that the system would be implemented for them by Oracle, vs. the reality that the end user is just as responsible for a successful implementation as the vendor.

However, Oracle was ultimately responsible and should have had the business courage to call a ‘come to Jesus’ meeting about the problems, assuming there were a fair number of them being caused by the client.  Instead, they just continued billing away.

I also am amazed by the ratio of services to software.  We fight an uphill battle with clients who always think the implementation is too expensive when our ratios are 1:1 to about 1.8:1 Services to software depending on the solution and project. 

This project was budgeted at 4-1 ratio for a solution that was actually specifically written for the industry.  Then Oracle wanted to change it to 6-1, even though they signed a fixed fee contract. 

Now the lawyers get to make millions litigating this mess in multiple lawsuits and they still don’t have a new solution.

SAP Business ByDesign and Dennis Howlett’s findings on SAAS/Cloud Purchases

Thursday, February 24th, 2011

opinionDennis Howlett ‘AccMan’ recently wrote a blog post talking about how some analysts (Gartner in this case) asked some questions of those using the SAP Business By Design solution went about their purchase.

You can read the post at the link but I did find something troubling.

It sounded like many of the people who bought this SAAS or Cloud Solution did so without seeing much or any of the product and without doing any investigation of alternatives.  That likely means they also didn’t do much or any analysis of fit or function.  They bought on the SAP Brand faith.  But for a product that has been ‘released’ for 3 years that still has large functional holes, I don’t see how you pay a monthly fee per user for a solution that is likely to require many external workarounds.

And since SaaS solutions are usually less customizable than premise counterparts, filling this gaps is going to require the vendor to acknowledge the gap and to fix it, often years down the road.

I just don’t see how drinking brand Kool-Aid is smart business and will likely create a black eye for the whole SaaS / Cloud market as disgruntled users are usually very vocal.  Just Google ‘netsuite sucks’ and you’ll see what I mean.

I don’t think the evaluation of a Hosted, SaaS or Cloud solution should at all involve the fact of how its licensed or hosted.  In the end, it needs to come down to how well it fits the needs of your business, what other companies like yours are successfully running it, and will it return more value to your business than you pay for it.

Just my humble opinion…