Oracle ERP Cloud vs. Oracle EBS: Which is Best for Your Business?
Oracle EBS (E-Business Suite) is a compilation of applications built to offer overall coverage for businesses’ operations including Order Management, Human Capital Management, Supply Chain Management, Financial Management, Asset Lifecycle Management, and many more. Oracle EBS, though a revolutionary suite of comprehensive enterprise products, needs an on-premises infrastructure to be functional on the company’s internal networks. This not only raises the necessity for trained in-house personnel to operate and maintain the EBS but also adds to the costs of maintaining the hardware.
As a respite of these persisting issues with businesses being forced to spend their time, resources, and money on maintaining one IT segment, Oracle introduced its cloud-based ERP alternative as a contemporary counterpart of the new in-trend technologies. Oracle ERP Cloud solutions have become revolutionary innovations in the IT field offering automation for repetitive organizational tasks, streamlining workflows, and allowing businesses to retain information in a centralized manner, hence, smoothing over any communicational hiccups. The need for companies to purchase, operate and maintain expensive hardware has fallen drastically, as well.
Now that the cat is out of the bag, is it still a feasible choice for companies to retain their EBS applications? Let’s find out!
Benefits of Oracle EBS
On its own, Oracle E-Business Suite has some highly impactful benefits to an enterprise. It is a comprehensive applications suite consisting of systems that can integrate the efforts of the entire organization. For example, the EBS Enterprise Resource Planning (ERP) system, Customer Management system, Supply Chain Management, Financial Management, etc.
Oracle EBS users have come to rely on these on-premises integrations to transform the way traditional silo system-coded firms operate. Scattered data points from all over the organizational sources are compiled into one singular data source through the EBS to make it more comprehensive and add on to the firm’s analytical capabilities.
The only setback to Oracle EBS’ capabilities seems to be the hardware mechanism it operates on. However, Oracle has assured its users that this technology is going nowhere, at least for the next decade. Oracle has extended support for the E-Business Suite till 2034, released the latest update 12.2 with new features, and promised new innovations to this extensive suite in the near future.
Benefits of Oracle ERP Cloud
Oracle’s Cloud ERP system is an upgrade to its EBS hardware. It is Oracle’s SaaS solution offering enhanced EBS functionalities:
- Oracle Cloud ERP eliminates the need for purchasing and maintaining expensive Hardware
- For cloud-based software, the need for implementing upgrades and security patches consistently and manually is eliminated
- The overhead costs for operating on Oracle Cloud are considerably lower than deploying customized hardware for all individual functionalities in EBS. The total cost of ownership (TCO) is reduced considerably
Oracle Cloud ERP vs. Oracle EBS
While Oracle E-Business Suite has been a premier technology for more than two decades, we can all guess how far hardware technology will go in today’s digital-first world. EBS has not lost developmental support from Oracle yet, but firms are already taking a safer early exit before their operations go obsolete. Oracle reported that in 2022, 15% of their on-premises technology users had already shifted to the cloud, with 25% preparing for the transition. Around 47% of the remaining Oracle EBS users are expected to make the switch within the next decade.
While there are multiple factors keeping the remaining 13% of Oracle users from migrating to the cloud, here are some crucial differences between Oracle ERP Cloud and Oracle EBS to consider before support services are pulled from the E-Business Suite:
1. Legacy Status
All hardware applications are losing importance in the face of robust, easy-to-maintain software. Although Oracle’s EBS is not yet officially legacy hardware, it is not guaranteed further support after 2034.
2. Robust Infrastructure
Oracle EBS facilitates internal interaction well. It fills communication gaps between different organizational silos. However, it wasn’t designed to accommodate third-party networking. The Oracle ERP Cloud lets you utilize third-party networks to collaborate and create better value in operations.
3. Overhead Costs
Since Oracle EBS is an on-premises solution, it requires a trained in-house IT team, purchase of new hardware to build new applications or facilitate new functionalities, and maintenance infrastructure. Upkeeping hardware technology adds considerably more cost compared to deploying SaaS-based solutions. Around 50% of migrated users have reported a reduced TCO after migrating their operations to Oracle ERP cloud.
While Oracle EBS was built to facilitate faster delivery-to-market, Oracle Cloud is an addition to those capabilities. It is more feasible for cognitive technologies to take over automation tasks. As opposed to intelligent technologies, on-premises IT teams spend more time configuring complex systems that are more vulnerable to human error.
Oracle’s cloud infrastructure allows flexibility in accessibility. It can be accessed remotely from anywhere, especially mobile devices, as opposed to hardware tech restricted to physical on-premises operability.
6. Security Updates
The Oracle ERP cloud comes with built-in security updating capabilities. E-Business Suite requires manually deployed upgrade hardware. There is a risk of losing critical data if the updates are not completed within the time since hardware updating is time-consuming.
Is it More Feasible to Make an Immediate Switch to Oracle ERP Cloud?
It is safe to say that Oracle EBS is here to stay, at least for the foreseeable future. Oracle has extended support for this technology considering its reliability and demand from users. There is still room for more innovations before the lights are turned off on the E-Business Suite. Oracle is ensuring premier support with new feature releases to facilitate its majority of users who have not yet embraced the cloud.
However, this support is extended based on the premise that within a decade’s time, organizations will be better equipped to slowly transition to the ERP cloud without taking a blow to their current operations. Organizations should utilize this time to brainstorm their best-suited migration strategies. Migrating to the ERP cloud can be a complicated process due to EBS hardware complexities combined with ongoing enterprise operations (maintaining enterprise reporting, real-time data mining, keeping up-to-date with regulatory requirements, etc.). That’s what we are here for!
At Apptread, we ensure that you make a successful and seamless switch to Oracle ERP Cloud using our Oracle migration services. Our dedicated team of experts closely collaborates with you to build the best migration strategy while keeping your business’ operational functionality optimal and reducing downtime. If you are ready for the transition and need assistance, we’re just one call away!