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ERP is a mission-critical application that connects all operations, from sales and customer management to inventory and finance. It provides decision-makers with the desired visibility and enhances collaboration across teams. ERP systems must perform faster and handle more capacity. Must support new technologies such as Machine Learning, Artificial Intelligence, Digital Assistants and more. A cloud-based ERP can help organizations achieve the same, which makes it imperative for them to modernize their ERP by migrating it to the Cloud.

There are six effective approaches, commonly known as “The 6 R’s of Cloud Migration”.

1. REHOST (i.e. Lift and Shift)

The essence of “Lift and Shift” is to quickly enjoy the CAPEX and OPEX and other benefits of Cloud IaaS. This is like a getting out of the data center which leads to significant cost savings on valuable office space and the amounts of money spent to avoid overheating/maintenance of the data centers.

2. REPLATFORM (i.e. Lift, Thinker, Shift)

Replatforming is the middle ground between three approaches wherein the code is not altered excessively. However, replatforming involves slight changes to the code for the purpose of taking advantage of the new cloud infrastructure. This is a good strategy for organizations that want to build trust in the Cloud while achieving benefits such as increased system performance.

3. REFACTOR

Refactoring involves rebuilding or redeploying the application using cloud-native features. Unlike “Lift and Shift”, a refactored application not only pulls data from cloud storage for analysis but also completes its analytics and computations within the Cloud. Companies that choose to refactor will reuse already existing code and frameworks, but run their applications on a PaaS (Platform-as-a-Service) as done in case of rehosting.

4. REPURCHASE

Repurchasing means moving to a different product. Simply put, organizations can opt to discard their legacy applications altogether and switch to already-build SaaS applications from third-party vendors.. This is cost-effective strategy, but commercial products offers less customization.

5. RETIRE

Retire means that application is explicitly phased out. In case your ERP fails the Cloud feasibility assessment, you must take a call to simple retire it and probably implement a SaaS based ERP.

6. RETAIN

This means “do nothing for now, and revisit later”. If you are unable to take data off premises for compliance reasons, then you must revisit cloud migration when you overcome the challenges or when the required compliance mandates have been received.

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You can read more about The 6 R’s of Cloud Migration Strategy here.

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