Gartner Paper Addresses Top Questions From Oracle ERP Customers

by Christina Yue, Customer Learning Manager |

Stop, look, and listen. The phrase must come to mind often for the team at Gartner, the American research and advisory firm providing IT-related insight. The team is often asked by Oracle ERP customers about possible options for replacing their company’s on premises suite. It is such a common question and so important to its customers that the Gartner team shares its advice to businesses with this question in the paper “What Oracle ERP Customers Need to Know About Oracle Cloud Applications.” The paper was just released March 29.

According to Gartner, “Client interactions suggest that many Oracle customers have been inaccurately told that their on-premises ERP suites are at the end-of-life stage and that they must move to the cloud now.” It causes a bit of a panic. Gartner advises Oracle ERP customers to stop to think about this for a moment. Gartner notes that Oracle receives much of its software license revenue from customers paying for maintenance of, and new sales of, its on-premises products. The company quotes Oracle co-founder Larry Ellison several times as he talks about the Oracle investment and commitment to on-premises application. Gartner also includes a table of Oracle’s recent financial results that further illustrates the value of on-premises suites to Oracle. “Oracle's on-premises suites,” assures Gartner, “are not at the end-of-life stage.”

Gartner tells the backstory about Fusion ... er, Oracle Cloud Applications. Gartner thinks an understanding of the history and maturity of Oracle Cloud Applications is a fundamental part of the decision-making process for Oracle ERP customers. They use data extensively to tell the story. The point, ultimately, is to understand how the Oracle Cloud Applications were developed and how the modern architecture and public cloud deployment of these applications make it easier for Oracle to add leading-edge technologies to them, such as artificial intelligence and machine learning. “Oracle Cloud Applications have been rated well by customers for functional capabilities, breadth and depth of functionality, and ease of use,” states Gartner.

Gartner recommends Oracle ERP customers to look closely at their options. Gartner provides an outline of the many Oracle Cloud Applications. In its descriptions, Gartner notes the Oracle investment too. The paper includes a useful table comparing the features of Oracle HCM Cloud, ERP Cloud and SCM Cloud.

Gartner believes it is important for Oracle ERP customers to be mindful of the Oracle strategy when making decisions about applications. “Oracle may decide to encourage on-premises customers more strongly to adopt its cloud applications. But Gartner estimates that day is at least five years away.” Gartner takes this opportunity to provide examples of on-premises products - E-business Suite, PeopleSoft, and JD Edwards - with investments and improvements by Oracle. Oracle EBS, PeopleSoft and JD Edwards EnterpriseOne customers should evaluate the cost of their maintenance fees against the features, functions and technology enhancements planned on the products' roadmaps. Gartner summarizes, “So, the real question isn't ‘Is my on-premises product end-of-life?’ but ‘Am I receiving value for the maintenance money I'm paying?’

Once businesses understand the Oracle timeline for its products, businesses can compare the requirements to the maturity of, and roadmaps for, Oracle's Cloud Applications. Gartner provides a guide to specific questions for businesses to ask when identifying needs and evaluating closely what specific functionality is being used or planned for use. Gartner also provides a useful table that outlines the options for existing Oracle on-premises ERP customers with possible goals and suggested actions accompanying each.

Gartner advises taking a postmodern approach to replacement. Postmodernism generally calls for a healthy dose of skepticism for systems. This thinking frees IT business professionals to decide to replace only part of an on-premises footprint. Once IT professionals at a business understand the details and maturity of Oracle's cloud products, any decision to move to the cloud should be based on a value proposition. Gartner reminds readers that, “Business benefits should be identified and tied to organizational goals and business outcomes.”

Gartner concludes the paper with notes about Oracle Applications Unlimited, Oracle's Support for PeopleSoft Continuous Innovation, JD Edwards EnterpriseOne and E-Business Suite Releases. Read the complete Gartner paper here.

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Posted by Quest Editor on Apr 17, 2018 10:00 AM EDT