TRADITIONAL ENTERPRISE APPLICATION SUITES LOSING GRIP AS COLLECTION OF BEST-OF-BREED APPS OFFER POINT SOLUTION FLEXIBLITY
SYDNEY, AUSTRALIA – Digital disruption is resulting in an increase in the adoption of Platform-as-a-Service (PaaS) to develop and deploy custom applications in the cloud, according to a new study by emerging technology analyst firm Telsyte.
Telsyte’s Australian Enterprise Applications Market Study 2015 found 56 per cent of Australian organisations are already using or investigating PaaS to deploy custom software as more seek fit for purpose applications.
“Cost, ease of use and emerging technologies like the Internet of Things and mobile apps are changing the way CIOs think about enterprise applications,” Telsyte Senior Analyst Shayum Rahim says. “PaaS empowers organisations to create role-based applications customised for business requirements as well as mashups utilising APIs.”
The big drivers for custom application development include improving business process (53%), unique application requirements (46%) and to create competitive advantage (37%).
Telsyte has found almost a third of organisations are currently using custom, in-house developed software to satisfy a business need, indicating a latent demand for PaaS development environments.
Telsyte’s ongoing software research also indicates many Australian organisations are moving to cloud-based point solutions, signalling a shift to a “best of breed” usage model for enterprise applications.
“We are seeing a growing wave of cloud-based applications being used as point solutions for everything from HR to expense management, further accelerating the decoupling of the ERP suite as solutions are offered across multiple platforms and devices,” Rahim says.
SaaS and cloud run hot as ERP feature usage languishes
ERP feature use among enterprises is languishing with Telsyte finding nearly two-thirds of organisations are using less than half of the features available. Also, as many as one third of organisations require further customisation to their existing ERP software, representing a massive over investment in what is considered to be the core business application.
With the top two factors for ERP success being easy to use interfaces and flexibility of the ERP system, Telsyte believes traditional ERP suites must evolve to compete with the new range of SaaS applications which offer modern UIs and flexible usage models.
Challenges with traditional ERP including high cost, not easy to modify or configure and long implementation times, all giving organisations reasons to look at SaaS.
Telsyte believes the new frontier for ERP will be in mobility and the Internet of Things as sensors on everything will transform business processes.
“From machine breakdown prevention and real-time error correction in manufacturing processes to real-time inventory control and predictive replenishment in warehousing and distribution, ERP needs to undergo changes to meet the challenges of digital disruption,” Rahim says.
About the Telsyte Australia Enterprise Applications Study 2015
The Telsyte Australian Australia Enterprise Applications Study 2015 is a comprehensive 85 page report which provides subscribers with key market insights across many aspects of the changing landscape for enterprise applications in Australian organisations including the challenges that organisations are facing; how they are reacting to the disruptive trends; market overview; usage and intentions; budget and spending; a comprehensive vendor SWOT analysis; forecast assumptions.
Over 100 vendors and service providers are covered in the study, including: Accenture, Accpac, AlphaWest, Anittel, AppFog, Apprenda, AppScale, Aprimo, Area9, ASG Group, Amazon Web Services, Blackline Systems, Brennan IT, CapGemini, Civica Authority, Clarizen, CloudForge, Compiere, Comtel, Concur, Consona, Cornerstone on Demand, CSC, Datacom, Dimension Data, Eloqua, Engine Yard, Epicor, Facebook, Fleetmatics, FreeAgent, Fujitsu, Gigaspaces, Google, HCL Technologies, Hexaware, HP, IBM, Infor, Infosys, Ironfoundry, Jive, Joyent, Kinetic IT, KPMG, Lawson, Linkedin, Marin Software, Marketo, Microsoft, MYOB, NEC, Netsuite, Northgate Arinso, Oakton, Optus, Oracle, PayGlobal, Plex Systems, Pronto Software, QAD, Quickbooks, Return Path, RightNow, Saasu, Sage, Salesforce.com, SAP, Servicenow, Software AG, SuccessFactors, SugarCRM, Tata, TechnologyOne, Telstra, Twitter, Unica, Unisys, VMware, Workday, Xero and Zoho CRM.
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Telsyte delivers strategic insights and advisory services to businesses that are producing, or are impacted by, disruptive technologies. Telsyte publishes studies into emerging consumer and business markets and provides custom research and advisory services. Telsyte is a wholly-owned independent business unit of UXC Limited. UXC is an ASX-listed Australian IT services company and the largest Australian-owned ICT consultancy firm with over 2,500 customer organisations in the private and public sectors across Australasia. www.telsyte.com.au
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