German enterprise software maker SAP has claimed that large businesses are not ready to move their enterprise resource planning platforms to the cloud.
According to V3, the company seems sceptic about large organisations adopting cloud based ERP solutions.
Speaking during the SAP World conference, Ian Anstey, head of the SAP's Business ByDesign on-demand software line, said that there were certain elements in cloud computing that enterprises will use but not all were deemed critical.
“There are elements of cloud technology that large enterprise customers will run, but they are generally not critical applications. There is too much risk and complexity for large companies to move mission-critical applications into the cloud. It is not proven to work, and it will be some time before they consider running an all-corporate cloud,” he said.
SAP believes that as money large organisations have already made huge investments in installing on-premise systems, they would not want to move to a remotely located infrastructure.
This is the sole reason that SAP has refrained from marketing its Business ByDesign ERP solution to large enterprises. The company has always pitched the software to mid-market companies but maintains that it can be used by subsidiaries of large companies.