In recent years, the way companies use enterprise software has been shifting rapidly. On-premises solutions are becoming less common, often not by choice but because vendors are steering customers toward cloud-based options. This trend is especially clear in the software-as-a-service (SaaS) space, where many vendors are making it clear that the future is cloud-first. One notable example is Epicor, a company known for serving manufacturing and distribution sectors, which has recently announced plans to phase out its on-premises ERP offerings.

The Move Toward Cloud-First Strategies

Epicor’s latest announcement sets a clear timeline for discontinuing support for its on-premises versions of Kinetic, Prophet 21, and BisTrack. Customers relying on these legacy systems will need to transition to Epicor Cloud, which is hosted on Microsoft Azure, if they want ongoing access to updates, new features, and support. While there are some phased support options, the message is unmistakable: the future is cloud-based.

This shift isn’t driven solely by customer demand. Instead, it reflects long-standing vendor priorities. Cloud solutions are cheaper for companies to support, easier to secure, and simpler to update centrally. For vendors, managing a single cloud platform reduces costs and speeds up the deployment of new features, including those powered by artificial intelligence and advanced analytics.

Vendor Benefits Versus Customer Concerns

From a vendor perspective, centralizing software in the cloud offers many advantages. It simplifies upgrades, reduces version sprawl, and lowers support costs. For Epicor, moving all customers onto a common code base means faster patches and a more streamlined engineering process. This business model encourages recurring revenue and makes it easier to innovate at scale.

However, not all customers see cloud migration as a positive. Many rely on legacy systems for mission-critical operations and worry about losing control over their data or facing new risks. Recent outages in cloud services remind us that cloud isn’t foolproof. Concerns about latency, regulatory compliance, and evolving security models add to the anxiety. For these companies, the move to SaaS is a mix of opportunity and challenge.

Many organizations are being pushed into the cloud not because it’s the best option for their business, but because vendors are making on-premises versions less available. While cloud solutions bring innovation and cost benefits, they also introduce new risks. Companies must weigh the advantages of faster updates and lower support costs against potential issues like downtime, data sovereignty, and security concerns.

This ongoing shift highlights a fundamental change in the enterprise software landscape. Vendors are investing heavily in cloud platforms because they can deliver updates more efficiently, support AI-driven features, and create more predictable revenue streams. For customers, the key is to find a balance—embracing the benefits of the cloud while managing its risks and ensuring their own operational needs are met.

Inspired by

• https://www.infoworld.com/article/4117632/caught-in-the-great-saas-squeeze.html

Sources

• epicor.com