What does the cloud hold for traditional ERP vendors?

Is it possible that the traditional ERP vendors may lose their dominant positions in the mid and large size enterprises because of cloud computing and what it enables – notwithstanding their own efforts to exploit the cloud.

Seems to me that the cloud enables business managers to demand a different experience of implementing information solutions to support their businesses.  There is an emerging demand for simpler, faster, cheaper implementations – potentially not built on one integrated solution from one ERP vendor.  And this may work well for the implementation partners also.  Ultimately they may be required to work off a reduced margin – but this may be achieved for significantly reduced investment and reduced risk of failure.

Excellent piece recently in CIO dealing with the future of ERP.  The piece does not purport to have all the answers – but certainly speaks to the challenges being faced by traditional vendors and the opportunities for those with solutions built for the cloud.

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