By Andrew MacMillen, Research Analyst, Nucleus Research
In today’s business environment, success depends on quick, intelligent decision-making, based on real-time data from every corner of the organization. To achieve this, enterprises have been migrating mission-critical applications for enterprise resource planning (ERP) from on-premises to the cloud. Cloud ERP solutions offer code currency, greater compute and data storage, end-to-end data sharing and visibility, ubiquitous access, and advanced capabilities that include machine learning (ML) and artificial intelligence (AI) — all while lowering the total cost of ownership.
Recently, Nucleus Research interviewed Oracle Fusion Cloud ERP customers and partners who migrated from JD Edwards to learn why they made the move. Here are the seven main reasons Nucleus found for why these customers chose to switch from on-premises to the cloud.
- Reduced risk and IT complexity: Number one among the deciding factors for cloud migration was the rising cost associated with maintaining an on-premises deployment. By switching to the cloud, companies eliminated the expense of purchasing and running servers and reduced the need for IT staff to manage the system, build custom features, create reports, and install updates. This gives IT teams more time and resources to pursue value-added work, as compared to when they were managing on-premises deployments.
- Increased business agility: With real-time access to ERP data from anywhere, and the ability to create self-service dashboards and reports without relying on the IT team’s technical expertise, Oracle Cloud ERP users can analyze their data quickly and easily, gaining fresh insights to drive innovation. One company reduced the number of IT requests for data queries in half in just the first year of moving to the cloud.
- Tighter integration: The nature of on-premises deployments makes integrating additional data sources and specialized point solutions cumbersome and complex, often necessitating custom coding that delays implementation and complicates upgrades. Cloud ERP offers a platform-based approach that eliminates silos and consolidates data, enabling cross-departmental analysis with end-to-end visibility into the state of the business.
- Lower costs: Fully managed SaaS solutions like Oracle Cloud ERP eliminate infrastructure-related maintenance costs and software management expenses, including system updates, integration, and security. Instead, companies pay a predictable monthly subscription fee.
- Better information sharing: Oracle Cloud Applications, such as Cloud ERP or Cloud HCM, use a common data schema, creating a single source of truth that breaks down departmental silos and provides enterprise-wide visibility to those who need it. This makes cross-functional collaboration easier, resulting in fully informed decisions, greater innovation, and improved experiences along the customer journey.
- Smarter decision making: With access to unified data and an easy-to-use self-service interface, business users can generate sophisticated reports and make more educated, data-driven decisions. Since Oracle Cloud ERP is updated seamlessly and automatically, users can take advantage of new functionality as soon as it comes online, without the re-coding that customized on-premises solutions require.
- Increased productivity: With access to ERP data via mobile devices and laptop browsers, business users can generate reports, perform tasks, and search data from anywhere in the world as easily and securely as they can on their office computer. At the same time, the IT team, relieved of custom coding and single-use reports, can tackle strategic initiatives that drive innovation for internal and external customers alike.
Real-world benefits of cloud ERP
These seven benefits — and many more — are far from hypothetical. In fact, organizations that have upgraded from JD Edwards to Oracle Cloud ERP are already seeing measurable results.
- One alternative energy provider found that its legacy JD Edwards system could no longer provide timely access to company data during its monthly financial close. Thanks to the broad support of data integration in Oracle Fusion Cloud ERP, the company automated data flow by connecting existing applications, helping employees to carry out more of their work without the need to confirm the data with a supervisor.
- When an entertainment and media company sought to consolidate its application ecosystem to accommodate organizational changes and drive long-term value, it chose Oracle Fusion Cloud ERP for its extensive support for complex financial structures and native integrations with external systems.
These and many other organizations have learned that migrating from on-premises enterprise software to cloud ERP doesn’t offer just immediate benefits. It also provides a platform for continued growth and a nearly effortless update path as innovative new capabilities come online.