In the first two parts, we spoke about what cloud service providers undertake to do, which would in part take away the IT pain and would provide the necessary sustenance to your IT assets. Convergence enables the merge of power technologies and people capabilities by helping consumers to realize complex IT capabilities in a simple and quick way. The values would, after all, be eroded if this is not the case.
In the third part, we explore another concept called ‘elasticity’.
The simplest way to understand elasticity is when you consume a service in the pay-per-use model. TV subscriptions, newspapers etc. are using this business model. For example, in business to business connections -- say consumer products -- retailers use this this model.
They get a margin from the products that move off the shelf and don’t necessarily incur a complete loss in goods that they carry but are unable to sell (especially in fashion retail or packaged goods).
Artists often draw up illusions that seem to show that you are on the same floor no matter how far you climb. In the world of business, consumers (businesses) may pay for their ERP on a monthly basis. They can scale up and down depending on their business needs without affecting the contract. This is just two degrees of freedom and perhaps the most tangible of the lot. However, as you may have guessed or wished there is more to it.
In Cue Sports, the striker makes elastic contact with its target transferring the full kinetic energy. Rubber bands are resilient enough to bind our lots, and yet it stays elastic enough to be used repeatedly. In Finance, a stock’s beta is often referred to as its financial elasticity because of its ability to perform despite market movements.
In Economic terms, elasticity is a measure of how a system responds to changes in its parameters. Cloud computing is expected to deliver on all these capacities.
Powerful workflows connect ERP documents together. Cash outflows, by way of a purchase, could be the cue. Goods receipt and payables could be within the striking distance with powerful workflow definitions.
In the world of the cloud, we talk of convergent capacities and hence anyone and any device is within the striking distance of these cues. Elastic data models ensure that the ERP may accommodate many different inventories with varying existence parameters, referenced in one-to-many or many-to-many interactions.
A unique capability in Ramco’s instance is its rubber bands – widgets for data analytics. Widgets may bind data as required by the best practice or expanded/reused to enable a custom decision-making process.
I will expand on this capability in a section meant for cloud analytics which will come later in this series. It must be said that 'binds' often refer to user authentication and other value adds that server side scripts can deliver.
Lastly, cloud ERPs are tuned to handle shut down, break down and usage 'bursts' by giving them an acceptable 'Beta'. We will expand on this too.