Why the Cloud Is More Than Hot Air for the Manufacturing Enterprise

Plex Online White Paper

At a Glance
Manufacturers have legitimate questions and concerns when contemplating a transition from a legacy, on-premise ERP solution to a Cloud ERP system. Cloud ERP solutions have proven their viability and superiority when compared to on-premise competitors when it comes to security, business continuity, cost and other factors. Data ownership should always be retained by the customer, with data available at any time.

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Cloud ERP for Manufacturers

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The Way We Were

Before the advent of the now mainstream Cloud, there werent any delivery options for providing access to mission-critical software programs for the business enterprise. A company would choose a vendor, build out the IT infrastructure necessary to run the software, hire a staff to implement,

deploy, test, and apply security patches and engage expensive consultants to ensure the software actually addressed the unique needs of the business. This was the method whether you were deploying customer relationship

management (CRM) systems, manufacturing execution systems (MES), quality management systems (QMS), enterprise resource planning (ERP) systems or any number of other industrial software solutions. All of the requirements were costly and time-consuming investments, but

necessary to reconcile functionality gaps and create operational efficiency.

For manufacturers, ERP systems integrated all of the business processes that enabled them to save time and expenses. More informed decisions could be made quickly, with fewer errors. And perhaps the most impactful result was that data became visible across the entire enterprise. Having an ERP system was always a foregone conclusion for manufacturers; and compete in the global economy.

without one it was impossible for a large manufacturer to operate efficiently

A New Century, A New Way of Conducting Business

The 21st century brought more than relief of surviving the Y2K scare. It also introduced an increasingly popular mode of delivering applications to businesses. What was first referred to as Software as a Service (SaaS)

later became more commonly known as Cloud computing. And the benefits soon became operational efficiency and reduce waste. apparent to any business seeking to improve

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Free from the need to maintain an IT environment and data center,

businesses employing the Cloud for delivering mission-critical applications not maintaining a software technology product with all of the tasks associated with that critical responsibility.

like ERP were now able to focus on their core mission producing a product

Key benefits delivered by the Cloud when compared to legacy, on-premise and an easier path to implementation and integration.

ERP systems are minimal to zero capital outlays, fewer required IT resources

Overcoming Concerns
The Cloud was initially looked at with suspicion. Large enterprises were reluctant to commit to the model, and for a good reason: when your threatened by an outage or significant downtime. production is dependent on a technology, your companys survival may be Securitys a concern. Why should I trust a third party with my proprietary data? o For any mission-critical service, a company needs to choose a wellqualified provider with impeccable industry certifications. When a company chooses an appropriate vendor to house its data in the

Cloud, it is enlisting a firm that has dedicated security protocols and data centers compliance with GR-3160 NEBS (Network EquipmentAssociations TIA-942 Telecommunications Infrastructure Standard for Data Centers the IT infrastructure at a manufacturing facility likely exceeds whatever the company has on-premise.

processes. In addition to the physical security implemented at modern Building System) requirements and the Telecommunications Industry

o Additionally, studies show that data is more secure when hosted by could retrieve and distribute information to harm the employer.

a third party than in an internal system where disgruntled employees

Business continuity is a critical consideration. Can I trust the Cloud to deliver? o Most providers of Cloud-based solutions have highly reliable and ERP solution Plex Online, uses two data centers with redundant secure data centers. For example, Plex Systems, provider of Cloud

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infrastructures which replicate data offsite, and employ the latest in

data-streaming technology. Situated hundreds of miles apart, if one

data center were to be rendered inoperable due to a natural disaster or a terrorist event, the other would support the application. Customers would experience little business disruption. Plex Systems achieves an aggressive recovery point objective (RPO) and recovery time objective costly to meet for an on-premise system. (RTO) goals of two hours or less a target that would be prohibitively o Plex Online has an impressive record of avoiding downtime. In 2011, mere 23 minutes of downtime for the entire year.

Plex Online logged a 99.996 percent availability which translates to a

One size does not fit all, especially when it comes to ERP systems. I need to be able to customize to meet my manufacturing companys unique needs. o In the case of Plex Online, all subscribers access a single instance of the software, but they are able to request customized functions and use functions This is a strength of the solution, not Online user community helps define

that have been developed for other users. a weakness. The vast and growing Plex attractive functions that improve the

service. Users can opt to use the new

features at any time or choose to ignore organization.

features that dont provide value to their o Plex Systems utilizes vendors that can compliance, e-commerce, etc.

provide needed niche functionality such as tax management, trade

Who owns my data? What if the vendor I choose goes out of business or is acquired by another company? o There is no question that the customers own their data, at least with data, at any time, which can be exported in several file formats. Plex Systems. They can request a full extract of a portion or all of their

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just like any request for a non-support-related request. Contracts to return data if there is termination of the contract either by the customer or by Plex Systems.

The only charge from Plex Systems is on a time and materials basis,

between Plex Systems and Plex Online customers specify an obligation

o The bottom line is that ownership of data is always retained by the customer and is available at any time.

The Cloud is a blank-slate opportunity for CIOs. Its a chance to move away from making sure that wires are plugged in to making a difference in the business.

Dennis Hodges, CIO, Inteva Products

Its important to conduct due diligence to determine the best technology solution for any manufacturer. Its smart to ask the right questions to the application. understand the track record and long-term viability of the company providing One incontrovertible fact is the Clouds ability to consistently deliver interruptions.

the application to the enterprise safely, predictably and with minimal When it comes to the Cloud for manufacturers, the outlook is sunny.

About Plex Online

Plex Systems, Inc., develops Plex Online, a Software as a Service (SaaS) or Cloud Enterprise Resource Planning (ERP) solution with specific features for the electronics manufacturing enterprise. Plex Online meets the demands faced by high-tech and electronics manufacturing companies including compressed product lifecycles, supply-chain agility, global visibility and regulatory compliance. www.plex.com.

www.plex.com | 855-534-8012
Cloud ERP for Manufacturers