Welcome!

Agile Computing Authors: Peter Silva, Elizabeth White, Roger Strukhoff, Jeev Trika, Olivier Huynh Van

Related Topics: Java IoT, Microservices Expo, Microsoft Cloud, Agile Computing, Release Management , @CloudExpo

Java IoT: Article

This Is Not Just ERP, This Is Two-Tier ERP

ERP now has the chance to come of age

The rise of Big Data and the monolithic systems that are now being built on increasingly cloud-based data models is a reality we cannot ignore.

This reality has popularized discussions relating to the core component mechanics of many firms' IT stacks.

Key among these technologies is ERP, or Enterprise Resource Planning to afford it its full moniker. The term can be taken to be a relatively broad expression as it encompasses software applications that oversee the management of suppliers, customer service, order tracking and all manner of demand and supply-related indicators...

... or to put it more simply, ERP systems look after companies' "systems of record" data.

"Indicators" being the operative word, as key performance indicators (KPIs) are used by organizations to appraise and evaluate the accomplishment and success of a particular business activity in which it is engaged.

So far inside the brief history of Enterprise Resource Planning there haven't been too many upsets. Most of the mega brand IT vendors from IBM to HP to SAP to Oracle all have a finger in the ERP pie and Microsoft is even in there too with its Dynamics product.

But for CIOs and the software application developers who connect the synaptic nerves of new deployments, a new subset of ERP (or extension perhaps) is surfacing.

SaaS-focused business management software company NetSuite is creating something of a new paradigm in the ERP space by rolling out a "two-tier" version of ERP that integrates with Oracle. The new offering works to amalgamate on-demand services with on-premise transaction systems.

The two-tier model is intended to allow customers to preserve on-premise ERP investments in Oracle (or indeed in other systems), while equipping global subsidiaries with what is promised to be a more flexible cloud-based ERP/financials system. The end result (in theory) then gives headquarters the real-time visibility it needs, at a lower price.

Given the heavyweight maneuverings going on over at SAP inside its ERP mothership, it is interesting to see NetSuite take what appears to an arguably more deft approach to coupling technologies in this space to augment and expand upon current offerings rather than simply trying to compete on the basis of speed, processing power, performance and general all round rocket power.

The firm is essentially bringing its OneWorld and SuiteCloud Connectors to Oracle and using connectivity technologies from IBM Cast Iron, Informatica, Dell Boomi, Celigo and Pervasive Software.

The concept behind the two-tier ERP twist is that it (in theory) enables subsidiaries to tailor ERP to their own special needs and support their local accounting requirements. It is also supposed to ensure that a remote subsidiary doesn't end up with a burdensome, hard-to-maintain on-premise ERP deployment.

Here's the developer proposition: keep the investment in the existing Oracle E-Business Suite system at the corporate level, but empower subsidiaries and divisions to innovate with a second ERP system that gives them more agility and better total cost of ownership.

NetSuite asserts that this two-tier approach has the advantage of being able to cut deployment time (and costs too) instead of installing on-premise ERP in each smaller division or subsidiary company.

Of course, NetSuite's major shareholder is Larry Ellison so it is also interesting to see the company playing this subtle two-tier approach rather than the usual Oracle "absorb, acquire, assimilate" approach.

Craig Sullivan, VP & GM of international at NetSuite, argues that a new era is dawning in this space and that ageing ERP is a drag on business agility. "The web enables business to go global instantly - reaching many millions of customers in a year or two, whereas it used to take a decade or more to make that type of progress."

Sullivan points to Groupon as an example of the kind of disruption that the Internet enables. The "fastest-growing company in history" grew to revenues of $700+ million in 2010 from $30 million in 2009 - a stunning growth rate of 2,241%.

"This would have been unthinkable just five years ago," says Sullivan. "With the dramatic growth in emerging markets, businesses are looking to quickly tap opportunities in the space of months, not years - before their competitors get there. Outdated ERP, unable to react to and take advantage of change, restricts the agility that is crucial in our increasingly online world."

This new (and it is comparatively) new approach to ERP comes at an interesting time. NetSuite contends that modern demand for real-time information and "boundless flexibility" point to just one answer: the cloud.

As cloud-based intelligently managed and intelligently separated (let's be polite here and say "tiered" rather than separated) ERP now has the chance to come of age, will we grasp this opportunity inside corporate enterprises? Will new cross-functional workflows and reporting processes come about as new sales channels are added and firms are suddenly able to enter new markets as they improve collaboration between internal and external systems?

NetSuite (and Larry Ellison) thinks so. Don't dismiss it without proper analysis.

This post was first featured on CIO Enterprise Forum.

More Stories By Adrian Bridgwater

Adrian Bridgwater is a freelance journalist and corporate content creation specialist focusing on cross platform software application development as well as all related aspects software engineering, project management and technology as a whole.

Comments (0)

Share your thoughts on this story.

Add your comment
You must be signed in to add a comment. Sign-in | Register

In accordance with our Comment Policy, we encourage comments that are on topic, relevant and to-the-point. We will remove comments that include profanity, personal attacks, racial slurs, threats of violence, or other inappropriate material that violates our Terms and Conditions, and will block users who make repeated violations. We ask all readers to expect diversity of opinion and to treat one another with dignity and respect.


@ThingsExpo Stories
Major trends and emerging technologies – from virtual reality and IoT, to Big Data and algorithms – are helping organizations innovate in the digital era. However, to create real business value, IT must think beyond the ‘what’ of digital transformation to the ‘how’ to harness emerging trends, innovation and disruption. Architecture is the key that underpins and ties all these efforts together. In the digital age, it’s important to invest in architecture, extend the enterprise footprint to the cl...
Cognitive Computing is becoming the foundation for a new generation of solutions that have the potential to transform business. Unlike traditional approaches to building solutions, a cognitive computing approach allows the data to help determine the way applications are designed. This contrasts with conventional software development that begins with defining logic based on the current way a business operates. In her session at 18th Cloud Expo, Judith S. Hurwitz, President and CEO of Hurwitz & ...
Fifty billion connected devices and still no winning protocols standards. HTTP, WebSockets, MQTT, and CoAP seem to be leading in the IoT protocol race at the moment but many more protocols are getting introduced on a regular basis. Each protocol has its pros and cons depending on the nature of the communications. Does there really need to be only one protocol to rule them all? Of course not. In his session at @ThingsExpo, Chris Matthieu, co-founder and CTO of Octoblu, walk you through how Oct...
In his keynote at 18th Cloud Expo, Andrew Keys, Co-Founder of ConsenSys Enterprise, provided an overview of the evolution of the Internet and the Database and the future of their combination – the Blockchain. Andrew Keys is Co-Founder of ConsenSys Enterprise. He comes to ConsenSys Enterprise with capital markets, technology and entrepreneurial experience. Previously, he worked for UBS investment bank in equities analysis. Later, he was responsible for the creation and distribution of life sett...
Fact is, enterprises have significant legacy voice infrastructure that’s costly to replace with pure IP solutions. How can we bring this analog infrastructure into our shiny new cloud applications? There are proven methods to bind both legacy voice applications and traditional PSTN audio into cloud-based applications and services at a carrier scale. Some of the most successful implementations leverage WebRTC, WebSockets, SIP and other open source technologies. In his session at @ThingsExpo, Da...
SYS-CON Events announced today that ReadyTalk, a leading provider of online conferencing and webinar services, has been named Vendor Presentation Sponsor at the 19th International Cloud Expo, which will take place on November 1–3, 2016, at the Santa Clara Convention Center in Santa Clara, CA. ReadyTalk delivers audio and web conferencing services that inspire collaboration and enable the Future of Work for today’s increasingly digital and mobile workforce. By combining intuitive, innovative tec...
Vidyo, Inc., has joined the Alliance for Open Media. The Alliance for Open Media is a non-profit organization working to define and develop media technologies that address the need for an open standard for video compression and delivery over the web. As a member of the Alliance, Vidyo will collaborate with industry leaders in pursuit of an open and royalty-free AOMedia Video codec, AV1. Vidyo’s contributions to the organization will bring to bear its long history of expertise in codec technolo...
SYS-CON Events announced today that Bsquare has been named “Silver Sponsor” of SYS-CON's @ThingsExpo, which will take place on November 1–3, 2016, at the Santa Clara Convention Center in Santa Clara, CA. For more than two decades, Bsquare has helped its customers extract business value from a broad array of physical assets by making them intelligent, connecting them, and using the data they generate to optimize business processes.
If you’re responsible for an application that depends on the data or functionality of various IoT endpoints – either sensors or devices – your brand reputation depends on the security, reliability, and compliance of its many integrated parts. If your application fails to deliver the expected business results, your customers and partners won't care if that failure stems from the code you developed or from a component that you integrated. What can you do to ensure that the endpoints work as expect...
The Transparent Cloud-computing Consortium (abbreviation: T-Cloud Consortium) will conduct research activities into changes in the computing model as a result of collaboration between "device" and "cloud" and the creation of new value and markets through organic data processing High speed and high quality networks, and dramatic improvements in computer processing capabilities, have greatly changed the nature of applications and made the storing and processing of data on the network commonplace.
The vision of a connected smart home is becoming reality with the application of integrated wireless technologies in devices and appliances. The use of standardized and TCP/IP networked wireless technologies in line-powered and battery operated sensors and controls has led to the adoption of radios in the 2.4GHz band, including Wi-Fi, BT/BLE and 802.15.4 applied ZigBee and Thread. This is driving the need for robust wireless coexistence for multiple radios to ensure throughput performance and th...
Enterprise IT has been in the era of Hybrid Cloud for some time now. But it seems most conversations about Hybrid are focused on integrating AWS, Microsoft Azure, or Google ECM into existing on-premises systems. Where is all the Private Cloud? What do technology providers need to do to make their offerings more compelling? How should enterprise IT executives and buyers define their focus, needs, and roadmap, and communicate that clearly to the providers?
SYS-CON Events announced today that Commvault, a global leader in enterprise data protection and information management, has been named “Bronze Sponsor” of SYS-CON's 19th International Cloud Expo, which will take place on November 1–3, 2016, at the Santa Clara Convention Center in Santa Clara, CA. Commvault is a leading provider of data protection and information management solutions, helping companies worldwide activate their data to drive more value and business insight and to transform moder...
The Internet of Things can drive efficiency for airlines and airports. In their session at @ThingsExpo, Shyam Varan Nath, Principal Architect with GE, and Sudip Majumder, senior director of development at Oracle, will discuss the technical details of the connected airline baggage and related social media solutions. These IoT applications will enhance travelers' journey experience and drive efficiency for the airlines and the airports. The session will include a working demo and a technical d...
There is little doubt that Big Data solutions will have an increasing role in the Enterprise IT mainstream over time. Big Data at Cloud Expo - to be held November 1-3, 2016, at the Santa Clara Convention Center in Santa Clara, CA - has announced its Call for Papers is open. Cloud computing is being adopted in one form or another by 94% of enterprises today. Tens of billions of new devices are being connected to The Internet of Things. And Big Data is driving this bus. An exponential increase is...
Digital innovation is the next big wave of business transformation based on digital technologies of which IoT and Big Data are key components, For example: Business boundary innovation is a challenge to excavate third-party business value using IoT and BigData, like Nest Business structure innovation may propose re-building business structure from scratch, as Uber does in the taxicab industry The social model innovation is also a big challenge to the new social architecture with the design fr...
The many IoT deployments around the world are busy integrating smart devices and sensors into their enterprise IT infrastructures. Yet all of this technology – and there are an amazing number of choices – is of no use without the software to gather, communicate, and analyze the new data flows. Without software, there is no IT. In this power panel at @ThingsExpo, moderated by Conference Chair Roger Strukhoff, panelists will look at the protocols that communicate data and the emerging data analy...
DevOps at Cloud Expo, taking place Nov 1-3, 2016, at the Santa Clara Convention Center in Santa Clara, CA, is co-located with 19th Cloud Expo and will feature technical sessions from a rock star conference faculty and the leading industry players in the world. The widespread success of cloud computing is driving the DevOps revolution in enterprise IT. Now as never before, development teams must communicate and collaborate in a dynamic, 24/7/365 environment. There is no time to wait for long dev...
SYS-CON Events announced today that China Unicom will exhibit at the 19th International Cloud Expo, which will take place on November 1–3, 2016, at the Santa Clara Convention Center in Santa Clara, CA. China United Network Communications Group Co. Ltd ("China Unicom") was officially established in 2009 on the basis of the merger of former China Netcom and former China Unicom. China Unicom mainly operates a full range of telecommunications services including mobile broadband (GSM, WCDMA, LTE F...
Data is an unusual currency; it is not restricted by the same transactional limitations as money or people. In fact, the more that you leverage your data across multiple business use cases, the more valuable it becomes to the organization. And the same can be said about the organization’s analytics. In his session at 19th Cloud Expo, Bill Schmarzo, CTO for the Big Data Practice at EMC, will introduce a methodology for capturing, enriching and sharing data (and analytics) across the organizati...