Infor, AWS research points to uneven ERP modernization and widening governance gaps
Many organizations adopt cloud ERP (enterprise resource planning) without the strategic governance needed to realize full value, leaving aging systems with declining satisfaction and hidden technical debt that internal reviews often miss. Achieving true ERP agility requires disciplined, reusable integration and strong data-quality standards to reduce costs and fully leverage cloud ecosystems. In a recent article on ERP Today, ERP writer and content director Tarsilla Moura reports on research by Infor, AWS, and Radar Group showing that many organizations are modernizing ERP in name only, with cloud adoption outpacing the strategic governance needed to drive real business value. The study finds that while 42% of organizations run ERP in the cloud, only 64% have a defined cloud strategy, leaving others to make ad-hoc decisions that increase costs and reduce control.
ERP systems often sit in a “mid-life comfort zone,” averaging 6.4 years old, with technical debt growing and satisfaction declining as systems age. Investment trends show that while overall technology budgets are rising, ERP spending lags, and initiatives like AI and ML are being pursued without the governance and integration readiness needed to unlock their full potential.
The research emphasizes that modernization is more than cloud hosting. ERP must be treated as a strategic business platform, supported by governance, integration standards, security models, and outcome-based KPIs. Recommendations include defining a clear ERP and cloud strategy, establishing decision rights, adopting a roadmap tied to business outcomes, and leveraging external assessments to expose blind spots.
Integration discipline emerges as the critical factor for ERP agility. Fragmented integrations drive costs and slow change, even in cloud-first environments. Treating integration as a product function—with reusable patterns, deprecation plans, and strong data-quality standards—ensures ERP can scale with business needs and fully leverage cloud ecosystems.
For IT leaders and ERP managers, the takeaway is clear: cloud adoption alone isn’t enough. Without structured governance and disciplined integration, ERP risks remaining a platform in place rather than a driver of operational improvement.
