Oracle EBS 12.1 EOS: Should You Move to Oracle ERP Cloud?

Software end of support deadlines can cause a lot of stress for IT managers and directors.

 
With concerns about the loss of security updates, bug fixes, and feature updates looming, the labor and cost of executing an upgrade are also top-of-mind. This is certainly true for companies running Oracle EBS who are anticipating the upcoming end of Premier Support in December 2021.

While many companies will choose to upgrade, many others will opt for an alternative path: either migrating to Oracle’s software as a service ERP cloud offering or moving their Oracle EBS applications to an infrastructure as a service cloud solution. In this blog post, we’ll discuss why companies choose to migrate Oracle EBS to Oracle ERP Cloud.

Why Oracle ERP Cloud?

Oracle Cloud ERP, also known as Oracle Fusion Cloud, has been named the leader of the 2021 Magic Quadrant for Cloud Core Financial Management Suites for Midsize, Large and Global Enterprise for the fifth year in a row, and is recognized for its power and versatility by leading analysts like senior Forbes contributor and ARInsights Power 100 analyst, Patrick Moorhead. Oracle ERP Cloud is a hot product, and Oracle is pushing hard to get organizations to make the move.

For companies that are using Excel or non-EBS applications for their ERP and want to use best in class tools, a move to Oracle ERP Cloud is a smart choice. Coming from Oracle EBS is a more convoluted decision, however. Oracle EBS has more than 200 applications and Oracle ERP Cloud currently has fewer modules. Though the cloud suite will continue to build and grow as time goes on, it can’t yet be considered an equivalent offering to Oracle EBS.

That said, Oracle ERP Cloud is where Oracle is making their investments in new tech, features, and security. In addition, it offers all of the standard benefits of cloud like the ability to scale up or down at will, high availability, and lower infrastructure and management costs. If it makes sense for your organization to make the move, it’s a win-win in the long run.

Use Cases for Migrating to Oracle ERP Cloud

We’ve built a list of real-world situations we’ve encountered that are ideal for companies wanting to move to Oracle ERP Cloud. If your organization fits these criteria, we recommend making the switch.

1. You have only a few Oracle EBS applications
   If your organization has implemented less than 10 EBS applications – and the applications have a matching sister module in the cloud – you are a very good candidate for a migration to Oracle ERP Cloud. The existing ERP modules are maturing quickly, and having access to automations, intelligent document recognition, and streamlined workflows will make a big difference for your organization.

 

2. You don’t want to upgrade

   If the benefits of upgrading Oracle EBS don’t seem worth the cost and effort, a migration to cloud SaaS could be a lighter lift. You won’t have to worry about any future upgrades or patches, end of support dates, or additional infrastructure investments as your organization grows. And Oracle is dedicated to making the migration as easy and efficient as possible.

 

3. You don’t have heavy customizations

   One of the most common objections we hear from customers about moving to Oracle ERP Cloud is the difficulty of maintaining and replicating the customizations they have in Oracle EBS. And this concern is justified – many businesses rely on these customizations as foundational elements of their environment. But some companies are running EBS more or less out of the box with few customizations. In this case, a migration is a much simpler undertaking and delivers many benefits over staying on-premises.

 

4. Maintaining your on-premises environment is becoming unwieldy

   It can be time-consuming, costly, and overwhelming managing all the moving parts of an Oracle EBS environment. If your team is overtaxed, understaffed, or simply giving you feedback that the ROI of staying on-premises simply isn’t there anymore, it’s time to consider a migration to the cloud.

 

5. You want to eliminate your infrastructure costs

   Eliminating unnecessary costs is top-of-mind for most companies these days, and infrastructure is a heavy investment. Not only does cloud remove a major burden on your budget, but it also allows you to move much of the cost of your applications from a capital expense to an operating expense. Keep in mind, though, that cloud licensing costs are perpetual – they will become a permanent fixture in your budget. In the long-run, cloud is more expensive, but the costs are spread out over time so it ends up being more manageable for most companies.

 

6. Expansion or M&A opens an opportunity to move to SaaS

   Companies that are acquiring companies, adding locations, or introducing new markets have a unique opportunity to start dipping their toes in Oracle ERP Cloud. We’ve seen companies implement Oracle ERP Cloud into new and future markets for several reasons:
    

   • Moving to ERP SaaS is part of their strategic plan anyways; expansion is an easy place to start.
   • Implementing ERP Cloud in a new location is easier than onboarding them onto Oracle EBS.
   • They want to use it as a test market to see if the software can meet their needs.
   • The ERP requirements of the new expansion are better met with cloud software.
   • The legacy software of an acquisition is easier to migrate to ERP Cloud than to integrate into an outdated version of Oracle EBS.

Final Thoughts

There are, of course, many exceptions to these five reasons for moving to Oracle ERP Cloud. For example, we have encountered companies that see cloud SaaS as a strategic long-term objective for the company. Despite having many Oracle EBS applications and deep customizations, there is enough value in the cloud to make it worth the investment to change internal configurations and processes.

At the end of the day, it’s up to you and your stakeholders to determine the future pathway of your organization and what role Oracle Cloud ERP plays in that plan. To read more about your cloud and on-premises options as we approach Oracle EBS EOS, download our white paper, “Oracle EBS 12.1 End of Support: The Ultimate Guide to Determining Your ERP Future.”