Total Cost of Ownership too High?
The Cost Reduction Business Driver:
Let’s get straight to it. Cost reduction is a massive business driver for most, if not all businesses. This, alongside the need to innovate, adopt change, and enable the business is why technology exists. But as technologies evolve and change, we quickly find ourselves left behind with legacy applications or full suites of last generation ERP that become an on going significant burden on business spend. These applications drain scarce funds needed for innovation and change enablement.
Total cost of ownership (TCO) is a significant factor when considering your applications and enterprise ERP choice. Studies have shown that as much as 72% of today’s IT spend goes towards maintaining the software solutions of yesterday. This leaves a mere 28% of your IT budget for innovation and enablement to drive additional business growth.
While the simple approach may seem to be to “sweat the asset” for as long as possible, the true business cost of this decision needs to be fully understood. Staying put and doing nothing has a business cost too.
On Premise vs SaaS vs SaaS 2.0:
Traditional on-premise ERP was based on a client-server and then multi-tier infrastructure. This was hosted at your business site or within a hosted data centre facility (On-Premise). Then came the opportunity to take that same traditional hosted on-premise ERP and put it into infrastructure as a service (IaaS). The timing of this was more prevalent in the last decade and this did provide benefits related to operations effort, costs, and simplified hosting arrangements.
Then we saw platform as a service (PaaS) and software as a service (SaaS) emerge in more recent years, where many vendors took their existing technologies and applications, lifting them onto IaaS and found a new commercial model to sell these within. The ERP applications within these new environments fundamentally did not change, and the way these applications were managed, supported, and maintained stayed the same. However, some further benefits were derived from this approach.
With the rise of first-generation SaaS applications, further cost reductions were realised, however many of the old flaws common to on-premise applications found their way into these first generation (Gen 1) of SaaS applications. In part because of the way products were acquired with existing technologies and then retrofitted into SaaS and then for many because the existing on-premise application functionality was effectively ported to SaaS.
The result is a number of continuing challenges with Gen 1 SaaS, including too many “Planned” outages with outage windows that are just too large for most enterprises. Certainly not appropriate for most manufacturing companies due to the 24x7 nature of their businesses. Performance and stability challenges remain due to an outdated engineering approach compounded by a cobbled together technology stack which has left the supporting platforms brittle. Many of the promises of SaaS were not realised with these SaaS applications.
So what went wrong? A key step was missed with these prior engineering approaches. A clean slate! The ability to take a completely new look at leveraging the very best in available current technologies, to reimagine enterprise applications from the ground up. While also engineering for the future by expecting future technology change and advancement, allowing for change adoption both of the underlying technologies and with the applications themselves, by design.
SaaS 2.0 TCO benefits:
SaaS 2.0 TCO benefits include no more upgrades. . . Ever! Updates, yes but these can be delivered while users are active due to the stateless nature of the user interaction with the platform. Stateless also impacts and strengthens high availability by design and the disaster recovery architecture, which quite honestly you are very unlikely to ever need to invoke due to the shear nature of the disparate locations of the cloud data centres and again the core technology design underpinning the Nextworld solution.
Nextworld is not cobbled together component parts of SaaS technology and applications, glued together with integration. That is the approach taken with other Gen 1 SaaS application vendors. This approach is costly in the short and long-term due to the high cost to implement, maintain and support these integrations. And again, costs are increased at future upgrade intervals with your Gen 1 SaaS application.
A key differentiation then, between Nextworld and Gen 1 SaaS applications is the provision of a fully integrated SaaS enterprise application set, built on a common platform architecture. These applications are provided on a common data model and within the same database. SaaS 2.0 avoids extensive integration costs completely. Nextworld is also designed to support your business customisations and extensions while providing a safe repository for your bespoke business process requirements for the long term. Engineered by design to adopt technology change over time through the separation of the application metadata from the technology. Allowing the metadata to be recompiled against various future technologies as they emerge and become industry adopted standards. Consider these additional benefits and cost savings to be had from a move to Nextworld.
Automated testing to remove a significant chunk of your testing effort and cost during your uptake of software updates. No more application upgrades.
Reporting, analytics and visualization functionality built into the platform available on all client & mobility platforms
Accelerated customizations and extensions to build to your unique needs at pace and without the traditional ongoing costs associated with maintenance and management of these extensions
Process automation included within the Nextbot platform for further simplification of business process and additional cost benefit to the organisation
Security baked in including single sign-on, multi-factor authentication, encryption, and security workflow
Integration tooling included with REST endpoints (APIs) and microservices for push pull integration to external systems.
NATE built in for support for long running transactions without data loss.
Auditing and traceability built into the platform with full visibility of the complete transaction history.
Stateless user connectivity providing extremely high availability by design.
Workflow built into the application fabric to define your business process flow.
All of the features listed above are included within the base costs of Nextworld.
Compare this fact with other Gen 1 SaaS application providers in the enterprise space. Customers are choosing to take on the Nextworld applications, but then quickly leveraging the Nextbot platform to replace existing legacy 3rd party or homegrown applications.
When company internal project teams become familiar with the platform within the application enablement project, we are seeing them quickly catch on to the ease with which to do away with those problem applications that are key to business processes. Nextbot is the answer to those problem child apps, further reducing business spend, and further enhancing the Nextworld SaaS 2.0 TCO model.
Time for change:
We would welcome the opportunity to take you through the business benefits of moving to next-generation SaaS 2.0 enterprise applications, along with an introduction to Nextworld and Nextbot. Our goal is to work with you to develop your approach and journey from traditional ERP to a NuTrax industry solution or Nextworld core applications with Nextbot. We will work with you to develop a business case, demonstrating the ROI available from a re envisioned enterprise SaaS applications road-map, complete with a Nextbot PaaS platform to enable future change adoption at pace. Let us help you on your journey to your new normal.
Total Cost of Ownership Too High?
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