In the weeks before the world went into lockdown, the digital team at shoe retailer LK Bennett was busy rolling out a new cloud-based platform to support online sales. The new ERP platform would simplify the management of LK Bennett’s IT infrastructure by reducing the burden on in-house IT staff, while increasing security, reliability and scalability.

Lockdown didn’t put the brakes on the project, and now the company is looking to shift its entire infrastructure into the cloud, says Zoe Donovan, digital director at LK Bennett. “We didn’t have any cloud technology until 2018, but now we use cloud for email and productivity, along with an ERP platform. Over the next 24 months, we’ll be moving our legacy systems into the cloud, so we’ll be in a position where we won’t have any physical servers,” she adds.

The retailer’s experience is typical of many mid-sized enterprises, many of whom have seen the potential of cloud technologies during the pandemic and are now committing fully to cloud. Research from manufacturing and distribution software provider Epicor shows that, in 2020, only 25% of respondents declared cloud a strategic priority, in this year’s study 99% of those surveyed confirmed that they plan to move to the cloud, and 94% of them intend to do so this year.

“There is a sea change in attitude towards cloud as a critical business accelerant, and leaders have moved from consideration to adoption,” says Steve Murphy, CEO of Epicor Software. “This is no longer a ‘why move’ conversation but rather a ‘how to move’ to gain advantage.” 

As a result of this shift, the whole cloud sector is extremely buoyant, adds Alex Hilton, chief executive of the Cloud Industry Forum (CIF). “It’s incredibly buoyant and you only need to look at the performance of companies like Microsoft, Google and AWS to see that,” he says. “But what we are finding is that many companies understand that cloud is a priority but are still debating how they will make the most of it.”

Before the pandemic, many organisations were still in the early stages of planning how they would adopt cloud, but they were forced to accelerate their plans by the pandemic. “If you’ve suddenly got to support 500 people who need to work remotely, then cloud is going to immediately jump to the top of your agenda,” Hilton says.

Remote working might have pushed cloud adoption in 2020, but it was far from the only benefit that business leaders saw. The pandemic provided businesses with an urgent reason to deploy cloud software, but in the process many organisations realised the huge potential of the cloud to drive greater agility. Many companies were forced to shift unexpectedly; from running web-based yoga classes, adopting Zoom meetings or offering customers curbside food pick-ups.

But what we are finding is that many companies understand that cloud is a priority but are still debating how they will make the most of it.

Research conducted at the end of 2020 by CIF found that 91% of decision makers in UK businesses said the cloud played an important part in their response to Covid-19, while 40% said it was critical. Business leaders agreed that cloud was critical in supporting remote workers, but other benefits cited included greater agility (44%) and easier scalability (33%).

Accountancy firm Xeinadin has deployed several cloud-based productivity and accounting applications in recent years. During the pandemic, the firm was able to shift to remote working smoothly. However, cloud software also helped it support increased collaboration between 14 regional hubs. “Having people sharing information centrally allows us to access expertise from different offices, in niche areas like corporate finance,” says Sian Lloyd, director of Xeinadin’s south Wales hub. “It’s also allowed us to give clients real-time information on their financial position and support them in making fast decisions on things like suppliers and staff numbers.”

Remote working is likely to give way to hybrid working in the next couple of years, and this should drive a further acceleration of cloud adoption, as organisations need to offer employees access to the same systems and information whether they’re working at home, or from the office.

At LK Bennett, the digital team is working to facilitate a culture that will support hybrid working after the pandemic. Donovan says: “Hybrid working is going to be the norm, so our role is to ensure it can be done in a way that is secure, and which also drives efficiency and collaboration."

The company is actively engaging with younger employees – who are keen to adopt digital ways of working – and helping them become advocates across their wider teams.  “We did used to have occasions where someone would save something onto a portable drive and take it home, so cloud is definitely making us more secure,” says Donovan. Already, there are improvements in productivity and efficiency in home-based and hybrid teams, she adds: “What we see is that the cloud makes it easier for multiple people to work on a design and move it through the process more quickly, because everyone is collaborating on the same version of the same design.” 

Hybrid working has huge potential to maximise the benefits of cloud around agility and performance, by allowing companies to recruit from a wider talent pool. For example, if a role only requires an employee to physically be in the office for one day a week, then there are huge numbers of parents or more geographically distant employees who may now be suitable for a role. “We have many people who have been excluded from work because of their need for flexibility, but that flexibility is now going to become the norm,” says Tina Howell, cloud platform lead with consultancy And Digital.

Organisations looking to introduce or extend their use of cloud in 2021 can certainly benefit from increased agility, efficiency and flexibility. But these goals can’t be achieved without the right planning and support, Howell adds. “People don’t always realise the responsibility of moving to the cloud. You still need to do the right work around security and design, and do the necessary due diligence,” she says.

Unlike the landscape three years ago, cloud is now an agenda-leading board level discussion for most organisations. Hilton says, “The pandemic has sharpened our focus, but the priority now must be to understand how cloud technology can make you more agile, because you’ll need that when the next crisis comes along.”

Cybersecurity has been an area of growing concern for at least a decade, but the Covid-19 pandemic has amplified its profile within businesses, particularly with some of the most dramatic and costly attacks to date occurring through this period. It’s also shown that even big-budget corporations are not immune – global supply chains are only as strong as their weakest link.

As hybrid and multi-cloud infrastructures have become a key part of diverse digital estates, the traditional network perimeter has been redefined and the attack surface has widened. Inevitably, opportunistic cybercriminals and fraudsters have sought to exploit the widened attack surface during the pandemic, especially through human error and weakness in this hybrid landscape.

Amid the accelerated use of cloud platforms, both by consumers and as a critical business accelerant, cybersecurity has risen to the top of the agenda. In a recent study for Epicor Software’s annual Insights Report, 32% of IT decision-makers in the retail, distribution and manufacturing sectors cited security and risk migration as their biggest concerns around cloud.

Companies are at risk from cyber attacks

Many organisations use cloud centres to facilitate collaborative working and information sharing, but cybercriminals seek to leverage a user’s credentials to compromise dozens of others. They not only look to exploit a weakness in cloud service providers’ defences, or their supply chains, but also the humans using these services, through ransomware and social engineering attacks.

“Be under no illusion, our opponents are not kids in their bedrooms – they are very highly skilled, hugely capable software experts with considerable resources at their disposal,” says Leon Shepherd, CIO at luxury clothing retailer Ted Baker. “In the retail sector, a key security threat is the theft of customer data, and the rise of sophisticated attacks throughout the pandemic has served as a reminder that we need advanced technology to counter these attacks. If targeted with a ransomware attack which might threaten to compromise or exfiltrate important or sensitive data, we need the tools to respond rapidly, precisely and proportionately.”

While exposing organisations to risk, remote working does also give companies some resilience. If devices are connected to different networks and one device goes down, there’s nothing to say other devices would also be compromised. A distributed workforce could, in this instance, minimise risk and help maintain operations in the event of a cybersecurity threat.

Be under no illusion, our opponents are not kids in their bedrooms – they are very highly skilled, hugely capable software experts with considerable resources at their disposal

“At the heart of the hybrid workspace will be secure technology that bridges the gap between the in-person and the ‘somewhere else,’” says Quentyn Taylor, director of information security at electronics manufacturer Canon. “Information security teams need to focus on what they can enable, as much as what they can prevent: flexibility to enhance collaboration, strengthen human connection and increase wellbeing for people – wherever and however they work.”

Though cloud initially triggered security concerns among enterprises, itis now largely seen as safer than traditional on-premise solutions because the largest purveyors are the biggest, most well-resourced players in the market, with every motivation to ensure data protection. Not all businesses have the resources to ensure the same for the equivalent on-premise legacy alternatives, which also lack the scalability, efficiencies and innovative capabilities of cloud.

Building a security plan

That said, organisations should still have a robust security plan in place for all cloud deployments, especially as most businesses will remain in hybrid IT infrastructures over the long term. This mixed infrastructure represents a higher level of complexity over which security must be overlaid, presenting companies with the potential of greater risk and the requirement to aggressively use the latest cloud tools to stay one step ahead of the latest threat landscape.

“Leveraging new real-time analytics tools deployed in the cloud helps to uncover new threat patterns indicative of cyber threats within an organisation – collecting and correlating data on from whom, to who, where, when and how information is disseminated – as well as across the wider cyber community, through threat intelligence,” says Ben Matthews, partner at consultancy firm Altman Solon. “As cloud growth continues, more security points and applications will be outside of the traditional perimeter, meaning it will no longer be about securing the perimeter but rather securing the endpoint, cloud applications and the underlying sensitive data being held."

As businesses look to leverage the post-pandemic economic rebound, cloud will be crucial to scaling growth without risking permanent over-expansion. With cloud, companies can take advantage of infrastructure, platforms and software-as-a-service applications that can be scaled up and down whenever necessary. But companies must ensure they adopt cloud solutions safely and securely, understanding the in-built security controls and logs generated by individual applications and infrastructure, as well as integrating into existing processes in a watertight way.

Migrating to the cloud is a powerful solution with many recognised rewards, but there is still a great deal of inertia because it can be a meteoric change for many businesses. Shifting precious intellectual property, customer databases, and operating systems to a computing infrastructure that a corporation doesn’t own and is off premises can be a challenge.

The cloud also alters the way IT teams have functioned for over a decade. It is that profound. Yet shifting to the cloud is no longer a question of if, it's ‘when,’ and ‘how much of your business.’ A vast number of organisations have embraced the cloud and are quickly reaping its benefits, whether its agility in deploying new applications, supply chain visibility or better customer relationship management.

“Moving to the cloud is a big decision. Business leaders need to show that they understand the magnitude of the change and the impact it will have, not just on their IT department, but all employees,” says Steve Murphy, CEO of Epicor, a global provider of industry-specific enterprise software, which has over 120,000 cloud users and 27,000 customers in 150 countries.

“The cloud is now table stakes. The value is in finding growth opportunities tied to cloud efficiencies. Switching to cloud offers organisations flexibility and resilience that keeps them ahead of the competition. It also clears the way for future growth because businesses can access the latest innovations at speed, as well as scale operations,” Murphy adds.

Yet there are still many perceived obstacles to cloud adoption. In a recent survey, security and risk were cited as the biggest concern by 33% of businesses, total cost of ownership was a worry for 27%, and the time to implement and the ability to customise to specific business needs was cited by 26%.

While there is an upfront cost with any new system, cloud can help save businesses money in the long run. The burden of deploying, running, and upgrading IT systems shifts to the cloud vendor. This allows IT personnel to become strategic shareholders. They can then focus on driving innovation.

“The concern that cloud is a bigger security risk than on-premises is still out there in some circles. That’s why it’s important for folks to know that due to its scale, cloud technology leverages far greater financial and expert resources than a single organisation could feasibly provide alone. Take Microsoft Azure – more than $1bn is spent on cybersecurity annually, and its data centre security is so strict that it would be cost prohibitive for a single business to try to replicate this on their own premises,” says Rich Murr, CIO of Epicor.

He adds, “Weighing up the business value of a cloud investment is also of concern. While there is an upfront cost with any new system, cloud can help save businesses money in the long run. The burden of deploying, running, and upgrading IT systems shifts to the cloud vendor. This allows IT personnel to become strategic shareholders. They can then focus on driving innovation.”

For cloud migration to be successful, partnerships are crucial. One size doesn't fit all when it comes to adoption. It is not all or nothing, where everything is migrated off premises in one go. For example, an application's back-end database can continue to run on-premises, while its front-end web servers run in the cloud.  

“Successful migration requires dedicated support to negotiate myriad options. That’s why organisations need a partner with deep industry experience who understands their business needs, offers customer-driven products and innovation, and can curate the right solution. Each business has nuance and specialties, and so should their technology,” says Murphy.

Many industries have specific challenges associated with their particular sector. Each industry uses the cloud to maximise its potential. At the same time, there can be choice paralysis. There are too many options when it comes to configuring business operations in the cloud, what to migrate and when. A lot of decisions are tied up in the strategic direction of the company and where it wants to be in the future.

Understanding a business is vital when it comes to cloud migration. That’s why Epicor teams tour facilities, visit clients’ retail locations, warehouses and offices. By engaging and collaborating with customers, Epicor is able to help them evolve and grow their businesses.

“At Epicor, we take our partnerships with customers seriously well beyond their purchase of a solution,” Murphy says. “We stand side by side with our customers on the shop floor where many of us, including myself, have also spent time working. We engage, challenge, and collaborate with customers at a deep level to help them reimagine their business and reach their goals.”

For more about your cloud migration, visit Epicor

The manufacturing sector has been hugely affected by severe planning shocks over the past 18 months, both on the supply and demand side, as Covid-19 has put a huge strain on all organisations. The businesses built to thrive during times of adversity and change have been able to overcome such challenges and gain share from less agile competitors by backfilling critical supply when others were out of stock, and slowing capacity when demand was down.

One prominent example is Pfizer, which, along with BioNTech, ramped up production, fill and finish capacities for Covid-19 vaccines with the help of remote machinery downtime diagnosis and similar digital manufacturing capabilities. For many organisations, however, the disruption has been crippling. On the supply side, even where manufacturers have not been constrained by capacity because of social distancing, they will have at least seen one critical supplier impacting their output. In terms of demand, changes in consumer patterns are magnified into significant fluctuations further upstream that are difficult to navigate and predict.

As more organisations embrace the power of real-time demand and supply data to keep their supply chains coherent, we will see more of the storage and processing of that data taking place on the cloud. Agility is essential, and it comes from a lot more than just holding more stock to manage uncertainty.

“In its totality, it collapsed by anything between 30 and 90%,” says Grant Bennett, CEO of aerospace manufacturer STG Aerospace. “Some businesses have just gone to the wall. What we still don't know is how long the tail of the effect of the pandemic will go on for. That applies to a wide range of industries, because we can’t confidently map out what is happening. The world shut down and it is now starting to open up again, but that is having another impact on the supply chain. The reality is things can only open at a pace that the supply chain can support.”

The Covid-19 pandemic forced the hand of many manufacturers to exploit the benefits of cloud. Whereas previously it was an option, the agility of cloud over on-premise is now business critical, making systems accessible to work from anywhere, with the possible exception of the actual manufacturing environment. Modern business is digital and, as such, a mature cloud capability is a key aspect of a manufacturer’s ability to support operations from anywhere.

How the cloud can help

Cloud enables remote monitoring, access, administration and system maintenance, facilitating not only continuity but simplification as software is updated automatically and without specialist resources on site, handled by the cloud provider. Manufacturers can focus on their core business of design, manufacture and operations. It is especially easier to improve operational environments with cloud as companies can quickly connect new smart devices and machinery.

“Cloud is pretty much table stakes these days,” says Jaco Vermuelen, who, as CTO of BML Digital, acts as a portfolio CTO to Saint Gobain and other manufacturing businesses across Europe. “The manufacturers that adapted best to Covid-19 prioritised the flexibility of their cloud investments and ensured support functions moved off-sites quickly and easily, enabled by the business continuity that is part of cloud. Some reacted faster than others in adding cloud to an existing setup and have stood the test of the pandemic as they have refined processes.”

Manufacturing and the future of software

Cloud will be vital as manufacturers now seek to leverage the post-pandemic rebound, facilitating the visibility required to achieve resilience and providing the infrastructure to manage the masses of demand and supply flow data that characterise supply chains today. A well-managed operations function ensures the right product gets to the customer at the right time and cost, and enables businesses to not only predict customer demand, but influence it.

“Manufacturers will rely on the cloud to see things before competitors, adapt faster and scale exponentially,” says Ramyani Basu, partner at consulting firm Kearney. “As more organisations embrace the power of real-time demand and supply data to keep their supply chains coherent, we will see more of the storage and processing of that data taking place on the cloud. Agility is essential, and it comes from a lot more than just holding more stock to manage uncertainty.”

With Brexit challenges still lingering and, no doubt, other disruptions on the horizon, manufacturers are learning that uncertainty doesn’t end with the pandemic – it’s the new business normal. To manage future disruptions, organisations with global supply chains need to accept that predictable and steady-state supply and demand no longer exist, and therefore they must harness the power of data and cloud to embed resilience and adaptability into operations.

Here are the top five:  

1. Futureproofs the business: Of those organisations negatively impacted by the pandemic, the least affected were mostly or entirely on cloud, according to a recent survey of 1,250 tech decision makers in the US and UK by Epicor. Some businesses may be concerned about cloud migration and integration with existing systems, yet most businesses find the transition worthwhile. Covid-19 brought a need for business agility and resilience, which is not going away anytime soon.

2. Boosts flexibility: The cloud can be a gamechanger. Technology that is constrained to servers on premises isn’t as adaptable to upgrades and remote work as the cloud. With a cloud-based system, companies are not responsible for the upkeep of the infrastructure, so they don’t have to worry about server end-of-life or upgrades. The cloud has helped facilitate the shift to remote working during Covid-19 lockdowns. Many businesses expect hybrid working to increase in the next five years, so organisations will need to offer employees flexibility. No one knows what the future of the economy may hold, so being able to flex as a business is vital. There is also flexibility in how cloud can be deployed. Hybrid cloud solutions now enable organisations to prioritise the migration of different business divisions.

3. Incredibly scalable: The cloud provides building blocks that allow businesses to scale their IT resources and data capabilities up or down. Its technological firepower depends on what is needed and when. This could involve adding users to a system, boosting bandwidth or increasing data storage capacity. The cloud enables businesses to tailor tech solutions to their needs at speed. The speed bit is crucial here since some organisations can grow rapidly in this disruptor-fuelled age. Cloud technology is critical to expansion.

   Increased adoption of cloud ERP will lead to an explosion in its market share in the next few years

   Global cloud ERP market size (USD)

   44.83

   141.68

   2020

   2028

   Emergen Research 2021

   Increased adoption of cloud ERP will lead to an explosion in its market share in the next few years

   Global cloud ERP market size (USD)

   44.83

   141.68

   2020

   2028

   Emergen Research 2021

4. Improves security, reduces risk: Cyberthreats are a perennial challenge for businesses. By migrating to the cloud, organisations can improve security by creating layers of protection such as encryption, antivirus and multi-factor authentication, as well as deploying cutting-edge solutions when needed. It also makes compliance easier, particularly with government data regulations or new industry standards. Instant access to the latest security patches and updates is vital. World-leading cloud vendors use the best in AI-fuelled threat intelligence technologies, test frequently and cover data with insurance policies to ensure business continuity.  

5. Increases collaboration: The cloud allows organisations to share data, tools and technology like video conferencing and collaborative platforms that bring employees together. Workers can work anywhere when the cloud is deployed. The same solutions function wherever that person is located, whether at home, in the office, a sales visit, the warehouse or in a retail outlet. Tools can also be used in real-time. This allows workers to react to fast-changing conditions.

Cloud is emerging as a crucial element for success; the time to act is now. Many businesses may be cautious about change, but with the right advice, provider and knowledge, migration becomes easier.