February 19, 2015 - Top 5 Considerations for Oracle Cloud ERP

Many Oracle application customers are asking themselves if a SaaS solution like Oracle ERP Cloud Applications is right for them or if they should stick with Oracle E-Business Suite (EBS). So, how can you decide if Oracle ERP Cloud Applications, also known as Fusion Applications are right for you? I’ve identified 5 considerations to help.


1. Improving Your On-Premises ERP Solution

Many of our clients are continuing to invest in enhancements to Oracle EBS. For example, customers are:

  • Deploying Oracle Business Intelligence, or similar applications, to improve the quality of business reporting
  • Implementing new EBS modules and customizing their applications to improve functionality
  • Integrating a broad range of applications such as Salesforce.com with their EBS solution

However Oracle’s focus is now on the cloud and new functionality developed solely for on-premises EBS will be limited, so many business users are looking for new solutions.

2. On-Premises ERP Solutions Will Be Legacy Applications within 2 Years

According to Gartner [1], by 2016, heavily customized on-premises ERP implementations will be viewed as legacy applications, and by 2018 some 30% of companies will have moved their ERP applications to the cloud.

As a result, there is likely to be a migration to an integrated set of ‘best of breed’ applications that work together to provide organizations with a complete ERP solution in the cloud. It’s unlikely that these applications will all come from a single company so there will be an increased emphasis on application integration.

  1. The Pros and Cons of On-Premises vs. Cloud
Pros Cons
On-Premises ERP
  • More control over data and security
  • No monthly subscription fees
  • Customized to meet your needs
  • Hardware or hosting provider fees
  • Costly software upgrades
  • Annual maintenance fees
  • Support costs
Cloud ERP
  • Lower initial investment
  • No hardware or software to install
  • Continual, automatic upgrades and faster implementation
  • Reduced opportunity for customization
  • Annual fees result in higher long term cost for licenses and support

4. Functionality

Can you do everything with Oracle ERP Cloud Applications that you can do with your Oracle E-Business Suite on-premises solution? The short answer is not yet. Today the Oracle ERP Cloud solution delivers many, but not all of the features of Oracle EBS. But there are a variety of new features that are available now which include:

Process Monitoring: Exceptions are proactively presented to the users and they no longer have to search for problems. It’s also easier to manage and resolve these exceptions.

Multi-Dimensional Reporting: Oracle ERP Cloud Apps give you secure, self-service access to live reports based on your data. There is also embedded business intelligence within the cloud applications.

Ad Hoc Queries in Excel: Using the Smart View tool from Hyperion which is built into the Oracle ERP Cloud Applications you can use an Excel spreadsheet to develop reports based on live data from your applications.

Improved User Experience: Oracle ERP Cloud Applications suite looks and feels more like a typical consumer website.

Mobile Capabilities: Access to EBS from mobile devices is now being deployed by Oracle. One example is Fusion Expenses, an expenses management solution that simplifies receipt capture and enables expense submission while on the road..

5. Coexistence 

Oracle is adding new functions and capabilities to their ERP Cloud Applications that they are not adding to E-Business Suite. As a result, the coexistence of EBS on-premises and Oracle ERP Cloud modules can make sense, and will provide you with the best possible functionality.

For example, Revenue Management Cloud Service is an ideal solution for companies with complex revenue recognition rules and who are running Oracle EBS today. This application takes data from Oracle EBS through prebuilt integrations, and provides powerful revenue recognition capabilities not previously available.

This coexistence enables a gradual migration from on-premises Oracle EBS to Oracle ERP Cloud Applications.

1 Gartner “Predicts 2014: The Rise of the Postmodern ERP and Enterprise Applications World” G00259076 12/5/2013

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