NetSuite, a provider of cloud-based financials/ERP and omnichannel commerce software suites, has announced the top reasons why businesses would replace their existing on-premise ERP systems.
A survey conducted by market research agency YouGov and sponsored by NetSuite in 2013, found that 36% of businesses want to reduce IT costs and maintenance and a quarter want more flexible access to their business information using mobile devices. 28% believe that superior or cheaper alternatives are available, 24% want to streamline and automate manual business processes and 19% believe that their on-premise solution is unable to handle its finances and scale with their company's growth. For these reasons, many businesses are seeking to replace their existing on-premise ERP systems.
The survey looked at 531 ERP decision makers (including CFOs and finance directors), 187 of which use Sage and 441 of which are using on-premise ERP systems, in UK businesses with 50 to 1,000 employees.
Businesses now seek a cloud-based ERP system that frees them from the challenges typically associated with on-premise systems such as costly software updates, a lack of mobility and disparate systems.
Pete Daffern, president of NetSuite EMEA & EVP of Verticals, said: "Using software that was originally developed before the Internet age is a sure way to stifle your growth ambitions. The reasons these companies give for moving away from their existing provider points straight towards the need for a cloud-based solution. Finance leaders need to break free of the constraints of their legacy applications to find new ways to drive efficiency and reliability, whilst scaling for growth."