Oracle E-Business Suite (EBS) is a commonly used software solution that is trusted by many global organizations to manage their critical business operations. Oracle continues to improve EBS with new features and capabilities while innovating its cloud infrastructure and developing complementary Software-as-a-Service (SaaS) applications to integrate EBS with the cloud.
This approach allows organizations to leverage the benefits of both on-premises and cloud solutions, and eventually transition to a flexible and scalable cloud environment. In a recent survey, 95% of European companies reported to have captured value from cloud adoption, and over 33% plan to have >50% of their workloads on the cloud. This shift indicates a transformation in how businesses are managed.
In this blog, we will uncover the advantages of migrating your EBS to the cloud. Discover how this move can unlock greater agility, efficiency, and cost savings for your business.
What Is Oracle EBS?
Oracle EBS is an integrated group of business applications designed to automate essential tasks across departments such as Customer Relationship Management (CRM), Enterprise Resource Planning (ERP), and Supply Chain Management (SCM). These applications are highly customizable and help businesses streamline processes, maintain data integrity, and improve report accuracy.
While EBS is a powerful tool for managing various business operations, its on-premises deployment has several limitations that can hinder an organization’s growth and efficiency.
Limitations of Oracle EBS as an On-premises Solution
High Total Cost of Ownership (TCO)
On-premises EBS systems need a significant investment in hardware, IT resources, and continuous maintenance. This increases the TCO and impacts overall profitability. For 49% of the surveyed companies, cost reduction is a reason to modernize their legacy systems.
Hardware and Maintenance Responsibilities
Organizations with EBS systems are required to manage and maintain their own hardware. It includes applying security and technical patches, maintaining the operating system, and performing software updates.
IT Resource Allocation
Many organizations lack core IT expertise. Therefore, maintaining an on-premises EBS system can overburden your IT resources and often lead to lower productivity. This misallocation of resources can hinder an organization's ability to stay competitive and agile in the market.
Staying Up to Date with Technology and Security
On-premises EBS relies on manual updates, which can be a slow and error-prone process. This can leave your organization exposed to security risks and hinder operational efficiency. A major concern for many – per this report, security is one of the key drivers for 58% to modernize their legacy applications.
Why Migrate from EBS to the Cloud?
The decision to migrate EBS to a cloud platform offers numerous benefits including enhanced capabilities that not only address the limitations of an on-premises system but also align with modern business needs. Whether you have concerns about your sensitive data or high-performance needs, cloud deployment can exceed on-premises performance, security, and costs, often at a lesser upfront investment and lower employee overhead.
An article on cloud computing in Europe states that European companies measure cloud impact primarily through IT metrics: 71% focus on operational improvements, 66% on cost savings, and 63% on the number of cloud applications. However, only about 33% monitor non-IT outcomes like cost savings outside IT (37%) or new revenue generation (32%).
Benefits of Migrating to the Cloud
Enhanced Efficiency and Accessibility
With cloud services, users can access the system from anywhere and at any time through the internet. This enhanced flexibility supports remote work environments, enabling resources to work efficiently from different locations.
Cost Effectiveness
Migrating to the cloud environment means operating on a subscription basis, where you pay for what you use. This significantly reduces the upfront investments on hardware and lowers the barrier for small businesses to leverage advanced business applications.
Seamless Collaboration & Increased Efficiency
Cloud-based infrastructure allows seamless collaboration of different teams to a centralized data hub – ensuring all the resources have access to the latest and accurate information. This is crucial for making informed decisions, faster.
Improved Security and Compliance
Cloud vendors maintain high standards of data protection. These vendors have dedicated teams that constantly monitor, identify, and patch security threats quickly. The cloud providers also ensure they comply with the latest regulations and standards and free your in-house IT professionals from these burdensome tasks.
Innovation and Upgrades
Cloud platforms are continuously updated and upgraded with the latest enhancements. Companies on cloud can take advantage of the latest features and improvements without manually updating the system or bearing downtime that typically accompanies traditional upgrade paths.
Sustainability
Migrating to the cloud can significantly reduce a company’s carbon footprint. Cloud vendors use energy-efficient data centers and scalable resources to lower energy consumption and reduce waste. This helps businesses achieve their sustainability goals while maintaining high performance and efficiency.
Scalability and Flexibility
One of the major advantages of cloud environments is scalability. As your business grows, your IT infrastructure needs to grow with it. Cloud services allow for easy scaling, often without or minimal disruption to services. Add or remove infrastructure and capabilities as demand surges or slows down, thus lowering operating costs. This level of agility is difficult to achieve with traditional on-premises deployments.
An insight report reveals that 40% of respondents consider business agility, elasticity, and scalability as the main drivers for cloud adoption.
Forsys for Oracle Cloud Applications
Oracle Cloud is a comprehensive platform offering a suite of AI-embedded SaaS applications to modernize IT infrastructure. It streamlines processes and provides a single source of truth across business functions, which enhances customer engagement, boosts agility, and enables faster responses to change.
According to recent statistics, the business adoption rate of Oracle Infrastructure Cloud was 29% as of 2023. This figure illustrates the growing trend of enterprises opting for Oracle’s cloud infrastructure services due to their comprehensive capabilities, scalability, and robust security features.
Forsys as an Oracle gold certified and cloud excellence implementation partner specializes in ERP Fusion Cloud Financials and Fusion Cloud SCM operations. Forsys with a strong team of 100+ certified resources with 20+ years of experience is often brought in to solve complex Oracle Fusion Cloud PaaS Development (for customizations) and Integrations. Being the best Oracle partner in India & USA for implementation, Forsys uses in-house accelerators and solutions for faster implementations, data migrations, and integrations.
If you are also considering migrating from EBS to Oracle cloud, talk to the best Oracle partner in India & USA.