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City moves financial system to cloud; council approves Tyler New World ERP SaaS contract
Summary
Council approved a cloud-based Tyler New World ERP software contract, citing data security and aging on-premises servers; staff said signing before year-end saved the city approximately $6,500.
The Orange City Council on Jan. 14 authorized the city manager to execute a contract with Tyler Technologies for the Tyler New World enterprise resource planning (ERP) system, migrating the city’s financial and business systems from on-premises servers to Tyler’s cloud-hosted SaaS platform.
Why it matters: City staff said the current on-premises hardware is approaching end of life and that moving to a cloud platform reduces risk from local storm damage, ransomware or other interruptions. Staff told council the FY2025 budget included up to $156,000 for the initiative and that by signing by Dec. 31 the city realized a vendor discount of about $6,500; the final expenditure reported to council was approximately $143,000.
Staff explanation Mike Zito (city staff) described the change as a move to a fully managed cloud environment that will remove the need for local servers, provide off-site backups and allow city operations to continue from other locations if a disaster affects local facilities. Zito said the migration reduces cyber and physical risk and aligns with the lifecycle timeline for the city’s hardware.
Council discussion Council members asked about potential exposure in the event of a data compromise; staff replied that the cloud migration reduces those risks and that the potential costs of a data compromise could be substantially higher than the one-time SaaS investment.
Next steps Staff will finalize onboarding and the cloud migration plan with Tyler Technologies and proceed under the FY2025 budget appropriation.
