The Top 5 Considerationsfor Oracle Cloud ERP

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1 Can I improve my on-premises ERP solution? 3

2 On-premises ERP solutions will be legacy applications within 2 years 4

3 Which is better? - “Pros and cons of on-premises vs cloud” 5

4 Functionality - “Can I do everything with Oracle ERP Cloud Applications that I can do with my Oracle E-Business Suite on-premises solution?” 6

5 Co-existence 7

TABLE OF CONTENTS

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ORACLE ERP CLOUD APPLICATIONS

How to decide if Oracle ERP Cloud Applications, also known as Fusion Applications are right for you.Many Oracle application customers are asking themselves “Is a SaaS solution like Oracle ERP Cloud Applications right for me or should I stick with my E-Business Suite (EBS) solution?” We’ve identified the top 5 considerations to help you decide.

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Many of our clients are continuing to invest in enhancements to Oracle EBS, but are tiring of the high cost and slow speed at which they are able to make these improvements. Here are a few examples of how our clients are improving EBS:

• Deploying Oracle Business Intelligence, or similar apps, to improve the quality of business reporting that they provide to their users

• 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 EBS on-premises will be limited, so many business users are looking for new solutions.

1. “Can I improve my on-premises ERP solution?”

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2. “On-premises ERP solutions will be legacy applications within 2 years”

According to Gartner1, by 2016 heavily customized onpremises ERP implementations will be viewed as legacy, 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 is unlikely that these applications will all come from a single company so there will be an increased emphasis on application integration.

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

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Pros Cons

On-Premises ERP More control over data & security Hardware or hosting provider fees

No monthly subscription fees Costly software upgrades

Customized to meet your needs Annual maintenance fees Support costs

Cloud ERP Lower initial investment Reduced opportunity for customization

No hardware or software to install Annual fees result in higher long term cost for licenses and support

Continual, automatic upgrades and faster implementation

3. Which is better? - “Pros and cons of on-premises vs cloud”

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4. Functionality - “Can I do everything with Oracle ERP Cloud Applications that I can dowith my 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 ofv new features that are available now.

The new features 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 – The Oracle ERP Cloud Apps look and feel 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 expens-es management solution that simplifies receipt capture and enables expense submission while on the road."

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5. “Co-existence”

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

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

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

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What is the cost and where is the value?

Everyone we talk to is asking the question “How can I reduce the total cost of my ERP system?” These costs include licenses and subscriptions, hardware support and maintenance, upgrades, testing, and customizations etc.

How does the cost of an on premises Oracle EBS solution compare with the cost of an Oracle ERP Cloud Applications? Apps Associates has helped many customers to answer this question and we can help you too.

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