Oracle’s E-Business Suite is a comprehensive enterprise application suite, combining functionality from various ERPs, with its primary revenue source coming from its on-premises solutions.
In this article, you will get insights into Oracle Cloud penetration, addressing speculations about the continuation of Oracle EBS on-premises solution and its continued popularity among existing customers.
Moving Ahead with Oracle Fusion Cloud
With the introduction of Oracle Fusion Cloud, Oracle wants to offer the best of its ERP features on the Cloud, and control most aspects to ensure simplicity for customers, assuring mobility and many more. Oracle took Fusion Cloud as a high priority area over others and started executing Cloud ERP modules for its customers.
Frequently Asked Questions
1. Is Oracle Jeopardizing On-premises Solutions for the Growth of Cloud?
Oracle has moved a majority of its sales teams from on-premises solutions to focus heavily on the sales of Cloud ERP. Also, Oracle is tossing a lot of incentives to push customers to the Cloud with little to no incentive to sell on-premises solutions. Those incentives indeed are leading the sales executives to sow seeds of doubt about the future of on-premises solutions. For more insights, see the recent press release from Oracle.
2. Is Cloud More Popular than Oracle E-Business Suite?
No, Cloud applications have different levels of maturity. Much of the growth Oracle Cloud is getting is from new customers. Customers are moving to Cloud to obtain the first mover advantage and to cut down cost & maintenance aspects. HCM Cloud provides all the components that customers would expect. ERP Cloud still lacks some essential functionalities. Cloud is not recommended for every industry as some of the areas are still under development. In addition, many CIOs are tempted to ignore Oracle Cloud applications “until they are mature,” because understanding the impact of adopting these applications can be difficult.
3. Should I Continue with Oracle E-Business Suite and Wait?
Yes, existing customers need not worry as Oracle is pushing mainly its new customers to opt for Cloud. E-Business Suite offers the best of ERP components, data security & customizations that customers need. If there is no new functionality that can get good value out of your investment, stay where you are. With the features and updates that EBS is getting, it surely has a life beyond 2030.
“Less than 15 percent of our on-premises applications’ customers have begun to migrate their applications to the Cloud.”
So, if you are looking for new functionalities and other benefits that Oracle EBS cannot provide, evaluate and compare third party vendors that can integrate their solutions with your EBS instead of taking a leap towards Cloud. Partners such as Propel Apps offer mobile apps & other digital solutions to help Oracle EBS customers in their digital transformation.
4. What is the Future of the Existing User?
Oracle will not jeopardize EBS as many of its users are still finding value out of it and with the lack of customizations available in Oracle Cloud.
Besides, profits from on-premises solutions are enormous and Oracle cannot avoid on-premises solutions so easily. Oracle will not jeopardize its existing on-premises users, especially EBS users for the sake of Cloud. It will continue offering newer functionalities & support existing customers using on-premises solutions, especially Oracle EBS. Oracle EBS users can make best use of their ERP by investing in third party solutions that integrate with EBS for specific functionalities instead of leaping towards Cloud.
From the above discussion, it is evident that Oracle EBS is going to stay, considering the potential advantages that this platform offers. Oracle is expected to support EBS until 2030 or beyond. Hence, organizations that are already reaping good benefits out of this on-premises solution need not worry about migrating to Cloud at this stage.