By Rondy Ng, Senior Vice President, Applications Development, Oracle
This week, Gartner issued its first Magic Quadrant™ report for a new category, Cloud Core Financial Management Suites for Midsize, Large and Global Enterprises. We’re thrilled to announce that Oracle ERP Cloud has been named a leader and is positioned the highest for ability to execute and furthest for completeness of vision.
We’re making the full report available to readers with our compliments.
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For this Magic Quadrant, Gartner evaluated the comprehensive, core financial management capabilities of Oracle ERP Cloud, including revenue management, project management, procurement and risk management.
According to Gartner:
Leaders demonstrate a market-defining vision of how core financial management systems and processes can be supported and improved by moving them to the cloud. They couple this with a clear ability to execute this vision through products, services and go-to-market strategies. They have a strong presence in the market and are growing their revenues and market shares. In the cloud core financial management suites market, Leaders show a consistent ability to win deals in organizations of different sizes, and have a good depth of functionality across all areas of core financial management. They have multiple proof points of successful deployments by customers based in their home region and in other geographies. Their offerings are frequently used by system integrator partners to support finance transformation initiatives.
ERP is the single largest category of enterprise software spend, at $31.4 billion in 2016. In the last five years, SaaS ERP growth has exceeded 25% per year. This shift is expected to continue as older, on-premises deployments reach the end of their lives.
The demand for Software-as-a-Service was reflected in Oracle’s recent earnings announcement. For the fiscal year just closed, Oracle’s cloud SaaS revenues were up 61 percent over the previous year, to $3.2 billion. Total cloud revenues (including Platform- and Infrastructure-as-a-Service) were up 60 percent to $4.6 billion.
For finance in particular, the drive toward cloud goes beyond the need to replace aging, on-premises systems. Recent research indicates that finance teams are moving from a focus on efficiency—controlling costs, risks and transactions—to being adaptive, analytical, and focused on agility and growth. Finance must be highly predictive, leading digital transformation and not just reacting to it.
The most visionary finance leaders are implementing cloud applications with practical, business-oriented capabilities for adaptive intelligence and the Internet of Things—applications that are continually updated as new technologies emerge. With these capabilities in the cloud, finance teams can automate—and continuously improve upon—as many tasks as possible.
In doing so, they free up their time and intellect for strategic analysis of new business opportunities. Finance teams can develop the skills to partner with the business, using predictive analytics and modeling to uncover hidden insights and help guide the organization forward.
As the trend of moving finance to the cloud continues to pick up speed, companies of all sizes are well-advised to begin the search for a leading cloud provider—especially larger enterprises, who have tended to lag behind their nimbler midmarket counterparts.
Working with an experienced, leading provider that has thousands of live customers, in many countries and languages, can help companies of any size feel confident in their choice to move finance to the cloud and transform their business.