What is Microservices?
Microservices is an architecture that builds an application as a collection of small, independently deployable services that communicate over APIs.
Definition
Microservices is a software architecture style in which an application is composed of many small, loosely coupled services, each responsible for a specific business capability and deployable independently. The services communicate through lightweight mechanisms, typically APIs or messaging, and can be developed, scaled, and updated separately. This contrasts with monolithic architecture, where the whole application is built and deployed as a single unit. Microservices can improve scalability, resilience, and the speed of delivering changes, at the cost of greater operational complexity.
How Microservices Works in ERP
Some modern cloud ERP vendors are moving toward microservices internally so that capabilities like tax calculation, payments, or specific modules can be updated and scaled independently. This can make the platform more extensible and allow faster delivery of new features without redeploying the entire suite. For customers, a microservices-based or API-first ERP often makes integration and selective extension easier. However, traditional ERPs remain more monolithic, and the architecture is largely a vendor concern rather than something most buyers configure directly.
ERP Vendors with Strong Microservices
SAP S/4HANA Public Cloud
Standardised cloud ERP with quarterly auto-upgrades and low TCO
Oracle ERP Cloud
Enterprise cloud ERP with deep financials and analytics
Workday
Cloud HCM + financials for services and people-centric orgs
Acumatica
Resource-based cloud ERP — unlimited users, pay by usage
Frequently Asked Questions
How do microservices differ from a monolithic ERP?
A monolithic ERP is built and deployed as one large unit, while a microservices design splits functionality into small independent services that can be updated and scaled separately, potentially allowing faster, lower-risk changes.
Does microservices architecture matter to ERP buyers?
Indirectly; it is mostly a vendor implementation choice, but an API-first or microservices-based ERP often offers easier integration and more frequent feature updates, which can benefit buyers.