Cloud Enterprise Systems Adoption
Overview
In recent years, Cloud computing has revolutionalized the IT industry by introducing a whole new concept and platform of enterprise systems (ES). The traditional ES seem to be too clunky, expensive and complex for most organizations to implement and use. To improve such situation Cloud ES concept was recently introduced to offer competitive advantage to organizations through flexibility, scalability and independence in IT infrastructure and capabilities. Today, this area has not been fully explored in theory due to little available literature but it has attracted tremendous interest from the general practitioners.
In the wake of the recent financial and economic crises, firms have looked ways to consolidate their infrastructures and services so that they can increase their return on investments. In line with the initiative, the development of new Information Systems (IS) applications have foster most of the firms to re-design their enterprise paradigms to form highly dynamic and agile units which is known as virtual enterprises around turbulent markets (Loo, 2011).
As the world continues to move toward a truly global economy based largely on e-commerce, a new paradigm of integrated systems that possess a flexible and web-based integrated infrastructure has emerged and they are, Virtual Enterprise Resource Planning (VERP) and Federated ERP merged with Service Oriented Architecture (SOA). To further continue the competition, organizations set up ES solutions such as Cloud Computing (Loo, 2011) aiming at solving the problems of complication faced in the traditional On-Premise ES.
A decision to recommend new technology may be based on evaluating capabilities, features, and challenges of the technology. Looking at the expansive literature available on both ES and Cloud Computing, few researchers have explored the integration of both systems. A significant study done by Saeed (Saeed, 2012) seek to