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Digital Ecosystems

Most companies opting to migrate to the cloud

To prepare their applications for Industry 4.0, companies are predominately opting to migrate to the cloud, with many finding it simply too expensive and time-consuming to update their existing IT systems.

18 Mar. 2019
Most companies opting to migrate to the cloud (photo: Lünendonk & Hossenfelder GmbH)

This was the finding of a survey conducted by consulting firm Lünendonk. According to the survey, when it comes to modernizing their IT, 65% of German companies favor the rapid migration of their existing ERP systems to the cloud, to update them here with additional microservices and APIs. Just 19% are planning to update their solutions in their existing on-premises model.

However, a mere 20% of modernization activities take place across the company; generally they are limited to individual business areas. This is also due to the fact that different departments often use different ERP systems or databases that are not synchronized, which makes it impossible to share and evaluate data. 20% of the companies surveyed use more than 20 ERP systems and 37% more than five CRM applications. The more ERP systems a company uses, the less inclined it is to consolidate them, since this would prove extremely expensive. It is predominately large enterprises with 2,000+ employees that pursue a consistent cloud strategy : Approximately 83% use cloud computing. Yet, for SMEs, the figure is still relatively high, at 65%.