Oracle EBS: Cloud vs. On-Premises – Which is Right for You?

The landscape of enterprise resource planning (ERP) solutions is evolving rapidly, and businesses are increasingly faced with the choice between cloud-based and on-premises systems. Oracle, a leader in ERP solutions, offers both Oracle ERP Cloud and Oracle E-Business Suite (EBS).

Though both Cloud-based and On-premises versions have their own set of advantages and challenges, on-premises customers are faced with a dilemma whether they need to move on to the Oracle ERP Cloud or not. This is because most of the Oracle EBS users are currently operating on older versions like R12 or 11i, and the support options available to them are inadequate. Moreover, maintaining integrations with other systems has become increasingly uncertain, while attempts to introduce new integrations are fraught with challenges. To decode this dilemma and to make an informed decision, this blog will explore the main differences between these two options, helping you determine which is best suited for your organization.

EBS Cloud Vs EBS On-Premises

The Main Differences Between Oracle Fusion (Cloud) and Oracle EBS

1. Architecture

EBS is an on-premises ERP system, meaning it is deployed and maintained on your organization’s own servers and IT infrastructure. In contrast, Oracle Fusion is a cloud-based ERP system hosted on Oracle’s cloud infrastructure. This offers enhanced flexibility, scalability, and the ability to access it from any location with an internet connection.

2. User Interface

EBS R12 features a user interface that can differ between modules, often reflecting a more conventional design and functionality. In contrast, Fusion delivers a contemporary and cohesive user interface across all modules, emphasizing an enhanced user experience and easy navigation.

3. Deployment Model

With EBS, you need to handle your own hardware, software, and system updates, which can result in increased maintenance and infrastructure expenses. On the other hand, Fusion is provided as a Software-as-a-Service (SaaS) solution, where Oracle takes care of the infrastructure, updates, and security, thereby lightening the load on your IT team.

4. Integration with Third-Party Systems

Integrating EBS with your organization’s third-party systems or applications can be more challenging due to its on-premises setup. On the other hand, Fusion that is built to handle seamless integration provides APIs and connectors to simplify connecting with both cloud and on-premises systems.

5. Customization Options

With EBS, you have a wide choice for customization, which can however lead to complex implementations and also challenges in further upgrades. On the contrary, Fusion allows limited level of customization as it encourages a more standardized approach to processes and modifications. This way, Fusions allows for seamless upgrades and maintainability.

6. Data Security

Your IT team handles data security and compliance, which can often be quite challenging to manage. However, Fusion offers built-in security features and compliance controls, overseen by Oracle’s security experts, thereby enhancing your data protection and ensuring regulatory adherence.

7. Upgrades

Upgrading to newer versions of EBS can be intricate and time-consuming, often demanding considerable effort and downtime. With Fusion, you benefit from automatic updates, so you’re always working with the latest version without the need for extensive upgrade projects.

8. Scalability

Scaling EBS to manage higher workloads typically involves extra hardware investments and intricate configurations. Fusion, being cloud-based, simplifies scalability, allowing you to easily adjust resources up or down based on your requirements.

9. Mobile Compatibility

Mobile access with traditional systems often needs custom solutions and can lack the seamless experience of cloud-based systems. Fusion, however, is built with mobile use in mind, offering a responsive design and dedicated apps for different devices.

10. Business Size and Growth

Oracle cloud is ideal for growing businesses that need to scale quickly without the burden of managing infrastructure. On the other hand, Oracle EBS is suitable for larger enterprises with established IT departments capable of managing complex ERP systems.

These distinctions emphasize the different strategies and benefits of Oracle E-Business Suite R12 versus Oracle Fusion. When deciding between these ERP solutions, you should take into account your specific needs, IT resources, and long-term objectives.

Why Migrate Oracle EBS to Cloud?

Migrating Oracle EBS to the cloud offers several benefits, combining the strengths of both deployment models:

Improved Agility

Moving EBS to the cloud can enhance business agility, allowing your organization to respond faster to market changes and scale resources as needed.

Cost Efficiency

Cloud deployment reduces the need for significant capital expenditure on hardware and infrastructure, leading to potential cost savings.

Enhanced Security

Oracle Cloud provides state-of-the-art security features, ensuring data protection and compliance with global standards.

Automatic Updates

Your organization could benefit from automatic updates and new features without the need for extensive internal IT resources.

Better Performance

Oracle Cloud Infrastructure is optimized for performance, often resulting in improved application performance and user experience.

Final Thoughts: Oracle EBS: Cloud vs. On-Premises

Choosing between Oracle Fusion Cloud and Oracle EBS depends on your organization’s specific needs, growth trajectory, and regulatory environment. Oracle ERP Cloud offers a modern, scalable, and cost-effective solution for businesses looking to leverage the latest technology. On the other hand, Oracle EBS provides the customization, control, and compliance needed for complex, established enterprises.

For many businesses, a hybrid approach may be the best solution, leveraging the strengths of both cloud and on-premises deployments. By carefully evaluating your organization’s requirements, you can make an informed decision that aligns with your strategic goals and sets the stage for future growth.

If you need further assistance in this regard or want to know which model works best for your organization, schedule a call with us for a free evaluation. Our experts will get in touch with you soon to understand your requirements and suggest the right solution, meeting your specific requirements. Request a demo.

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