The Cloud is rapidly becoming a star in the IT strategies of organisations throughout the world. Companies of all sizes are waking up to the benefits of moving some or all Oracle application to the Cloud, reducing the need for up-front capital investment in order to accelerate return on investment, as well as gaining greater business insight and an excellent user experience.
Blazing a trail
The reality of today’s Cloud technology is now matching – or even exceeding – the hype of a few years ago. However, some organisations are still cautious about moving business-critical applications to the Cloud, based on perceived risks that are often overstated and based on outdated concerns. To allay these fears, we can draw on the experiences of early adopters, such as Reading Council, to prove the value of migrating Oracle applications to the Cloud.
“When we implemented Cloud ERP for Reading BC they were able to save in excess of 30% of their annual IT spend. This significant saving meant they could protect their critical front office services through an early adoption of Cloud ERP during a period of financial austerity.”
Patrick Hopkins, ERP Capability Lead, Claremont
Organisations today are under increasing pressure to embrace new technology, both in order to demonstrate innovation and to improve performance. Within the Oracle community, organisations are at different stages in migrating their business-critical applications but more and more are embarking on – or at least planning their route for – the journey to the Cloud. A key driver is that the Cloud reduces the need for specialist skills in-house, liberating IT departments from systems maintenance and empowering them to focus on more strategic initiatives.
The state of play
Claremont’s recent survey on The Future of Oracle-based Applications delivers a fascinating insight into the state of play in Cloud migration.
The survey asked:
Has your business migrated any of its Oracle-based applications to the Cloud?
- 13% have migrated some Oracle-based applications to the cloud
- 13% are in the process of migrating Oracle-based applications to the cloud
- 74% of businesses have not migrated any Oracle-based applications to the cloud
- 40% say they will move to the Cloud within 12 months, 60% within 1 – 3 years
While only 26% are actively engaged in the Cloud at present, perhaps the most interesting result is in the intentions of the 74% who have not yet migrated. With 60% planning on moving to the Cloud within three years, organisations are clearly excited about the benefits of the Cloud, making late adopters an ever-diminishing minority.
“Our Cloud customers are well versed in the benefits of this approach. Reduced operating costs are often cited as the main benefit but customers also place highly value on access to around the clock support and the ability to remove the need to maintain specialist skills in-house.”
Jonathan Stuart, Managed Services Director, Claremont
The survey also asked organisations who engaged in the Cloud about which applications they have moved. HCM/Payroll is currently the most common application, with 62.5% of organisations moving it to the Cloud. In future, this looks is set to change, with 80% of organisations keen to move ERP, once any apprehensions have been dispelled (18% currently host ERP in the Cloud).
Moving business-critical applications to the Cloud only makes sense if you see clear benefits. The mass migration over the next 1 – 3 years demonstrates that the vast majority of organisations see them very clearly indeed. This movement towards the Cloud is surely influenced by the experiences of early adopters. For instance, the survey indicates that 75% of organisations who have moved their Oracle applications have reduced their operating costs as a result, with 63% saying their system is now easier to upgrade and maintain. Perhaps even more impressive, 63% cite their move to the Cloud as enabling new business models for the organisation.
“Judging by the smoothness of the transition project and your flexibility, there really wasn’t anywhere where I’d say there was room for improvement. Since go live, my guys have been very pleasantly surprised at the pro-activeness of your support. I think there’s been three occasions over the past few weeks where your guys have suggested something could / should be done and we’ve taken up your suggestions. In eight years with our previous supplier, this never happened once – not once!”
Barry Reynolds, Head of IT Services, PPL
The organisations who believed in the promise of the Cloud have blazed a trail and have proven the value of moving some or all Oracle applications to the Cloud. The right hosting partner will be able to work with you to determine if moving to the Cloud is right for you and to help make that journey as seamless as possible.
The figures in this article form part of the Research Survey Report: The Future of Oracle-based Applications, produced and created by Claremont. For further information on the detailed findings of this survey please contact firstname.lastname@example.org
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