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Does cloud-based ERP eliminate the need for capacity planning?
Some say yes, and some say no. What are your thoughts?
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3 Answers
By capacity planning, I understand this is your manufacturing capacity.
If so, then the type of ERP has no direct relation to your capacity planning. If you open a basic Industrial Engineering Text, there are three main types of manufacturing systems that decide what kind of capacity planning will use.
1. Make-to-stock : capacity planning is based on a forecast
2. Make-to-order : the orders are taken based on capacity
3. Engineer-to-order: this is a tough one and there are no clear rules.
Maybe I did not understand your question clearly!
Greetings Caty - regardless of the deployment model (on-premise, hosted, SaaS, cloud) IT capacity planning must be performed. The question is who will be responsible for IT capacity planning. A customer using cloud services should ensure that the provider is actively conducting capacity planning. The customer should also ensure that the cloud service provider can support periodic, on-demand capacity.
A Cloud Computing environment does not mean that you do not have to carefully look at the infrastructure resources needed to run your ERP system..It is very important to actually understand very clearly the elasticity and scalability needed in the long run to plan with your Cloud provider the right set up. You can actually check out a complete Cloud ERP buyer's guide recently released by Eval-Source http://www.getapp.com/evaluation-center/erp-cloud-computing-and-saas-buyers-g...
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