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Editor's note: All
you need to know about cloud computing is right here.
Talk of software-as-a-service (SaaS) and cloud computing is leading some to
say that value added resellers (VARs) will be replaced by vendors selling directly
to clients.
While the future of VARs that make a living installing software is evolving,
SaaS and cloud computing may actually present new growth opportunities to those
with expertise in ERP, accounting, and other mission critical applications.
An implementation example
Earlier this week, I participated as an observer during an ERP installation.
The conversation between the value added reseller (VAR) and the customer was
very typical.
The discussion included topics such as why a 13th accounting period is important,
the benefits of implementing accounts receivable versus manually using the general
ledger, how and when to setup sub-account codes, how taxes need to be implemented,
setting up the proper currency revaluation process, how to properly configure
and customize reports, reconciling bank statements with the ERP system
and
on and on for a few hours. The VAR also showed the client how to perform these
processes using the software.
This installation was very typical, so why am I writing about it? Answer: this
was a SaaS ERP implementation on a cloud platform. The conversation didn't change
because the implementation was SaaS. And although the software installation
was very different in this case (it was done on Microsoft Azure), the business
conversation was identical to an on-premise deployment.
In the case of ERP, the business discussion is much more meaningful and important
than the deployment conversation.
The ERP business discussion is critical
Utility applications such as email and web conferencing do not require in depth
industry expertise or customization. ERP, on the other hand, is implemented
in a constantly changing environment with complex business processes. Understanding
requirements and future needs is much more important for a business implementing
ERP than it is for a business implementing email.
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