Another Legacy Upgrade Fails
In a new blog post in Forbes, Ben Kepes describes a recent SAP upgrade where a company lost 6500 customers. He writes, “This loss was caused, in part, by ‘reduced activity during new system stabilization.’” Half-year profits at the company are down 54%.
Unfortunately, the theme is an old one. Legacy upgrades are notorious for being costly, taking a long time, and often breaking customizations that were made in the previous version. The issue comes to an ugly head when it results in a loss of revenue.
One of the many benefits of moving to the cloud is that you don’t have to worry about upgrades. The upgrade process can be as automated as you like, and all the customizations you make are retained. Not only does this eliminate the burden of system upgrades, but it also ensures that you’re always running the latest version of the software.
Says Tony Rowley, President of 3 Sigma Corporation, “Unlike those older-school systems, Kenandy is continually being updated so it can grow right along with our business.” Many of Kenandy’s other customers also speak to the value of the seamless upgrade process.
Many companies are beginning to realize the benefits of moving from a legacy system to cloud ERP. The transition was noted by Vinnie Mirchandani in his new book, SAP Nation:
“A decade ago, a large company like Big Heart Pet Brands would have likely gone with a safe choice like SAP or Oracle. It is a sign of changing times that companies are increasingly finding that the bigger risk is missing out on the opportunity to work smarter with younger, more responsive vendors.”