To Cloud or not to Cloud

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AgendaBackground

Cloud - general landscape

Life on a non-cloud environment

ERP solutions dilemma

Advantages of moving to Cloud

Disadvantages of moving to Cloud

Summary

Background Computer systems became available to business’ in the mid

60’s It is now strange to note that at that time the computers

were Large behemoths Occupied a large area Needed special skills to operate

Come to the early 80’s and ‘personal computers’ (PC’s) were introduced

For large enterprises though the mainframe and large computer systems were still the norm

In the late 90’s towards the end of the decade companies started providing Software as a Service (SaaS) model of operation

Cloud computing was here to stay

Non-Cloud Scenario On-premise hardware manages and has various

software installs Headcount - to manage these systems and

related equipment Periodic review for upgrades of both hardware

and software is Expensive Time consuming Takes focus away from day-to-day business Adds capital cost Adds operational expense for upkeep and

maintenance Not core business

Life In a Non-Cloud Environment Here are a few specialized functions that would

need additional coverage/ hardware/ skilled resource

Document scanning Bar coding Process low and automation

These would all need additional resources and involve costs – initial and ongoing

Evolution of the Cloud Salesforce was a pioneer in the larger business function

coverage with a ‘true’ Cloud offering Many other companies tried to follow suit, but it was not

until the mid 2000’s that offering began to proliferate Today many of the offerings are in SaaS and are deployed

to users in a subscription mode Here are a few notable

Salesforce NetSuite Amazon Web Services (AWS) Zuora Coupa

Enterprise

The ERP Dilemma

Enterprise solutions have never been singular

There have regularly been multiple ‘integrated’ systems

No single provider/ company covered all functions

Homegrown support logistics and integration proliferated

Large headcount to manage the disparate infrastructure, software and integration needs

The Integration Complexity & Challenge

ERP – Oracle Applications E-Business Suite – R12 - has been around since 2007 Prior to that there was 11i, released in 2000 Currently Oracle supports and manages both R12 and Cloud

ERP Cloud ERP was released in 2011

Then called Fusion Applications They introduced the version of Cloud ERP with CRM then

HCM followed by ERP The initial versions were still in controlled release so the first

commercially available version was Release 4 Current release is 11 (soon 12 will also be released)

More confusion with EBS-R12 and Cloud Release 12

E-Business Suite look and feel

What you Gain by Moving to Cloud

Modern technology stack and open architecture

Singularly simpler user interface – based on open standards

User focused reporting capabilities

Integration based on open architecture means easier capabilities to move data

No hardware or technology footprint – always current on versioning/ patching

Cloud look and feel

Cloud look and feel

What you Lose by Moving to Cloud

Legacy and older technologies – with harder to support components

Multiple systems used for functions – loss or ease of use

Reporting challenges and need specific skills for access to data

Customization capability

All infrastructure, hardware and software upkeep is owned by provider

Uniquely different business processes

Cloud look and feel

Cloud look and feel

On-Premise IT focused processes IT owns and makes changes to system,

business provides requirements IT manages specific skills for data and

reporting needs IT drives project based initiatives for

updates and upgrades Can have any number of non-PROD

environments Varied business processes

User focused processes Business owns process driven approach to configuration and

data capture Data and reporting is a user function and is real time – using BI

and Analytics Updates and upgrades are seamless invisible to user and

happen regularly Non-PROD environments are limited in number, expect

additional cost Best-practice modern process maps

Cloud

Summary There is no right answer that is clear the decision is always

based on your individual It is surely a possibility that if you are using only financials

then the answer maybe easy If you have complex manufacturing or distribution functions

in your enterprise then the answer is not easy Here are a selective list of functions that are easy to migrate

to the Cloud Finance Human Capital Management Sales To name a few ….

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