Oracle experts are likely to be well familiarized with the process of helping customers adopt cloud-based ERP solutions such as Oracle ERP Cloud, the obvious choice for our readers. But how many Oracle pros know where to begin the conversation exploring the reasons why organizations might want to shift away from on-premises software and into the cloud?
Oracle CEO Mark Hurd has laid out the template for such discussions through numerous public appearances and keynote speeches over the past few years. In a Forbes podcast interview earlier this year, he laid out the three key benefits of a cloud system in one easily-digestible sentence: “It costs less, it’s more secure, and you get a ton more innovation at the same time.”
In terms of its costs, Nucleus Research found that cloud systems wound up costing 2.3 times less, in terms of total costs of ownership, than similar on-premises ERP suites. Nucleus also found that cloud ERP offered companies 3.2 times as much in returns on their investment as they received from on-premises ERP. The difference between cloud ERP and on-premises alternatives is now 50 percent larger than it was two years ago when Nucleus last conducted this analysis, demonstrating that the benefits of cloud ERP only continue to compound over time as technologies mature.
If you’ve ever had to handle the headache of cleaning up a crisis caused by slow patching or outdated software at a customer site, you know that “more secure” isn’t just an idle boast. At this year’s Modern Supply Chain Experience conference, Hurd noted that “The likelihood you’re more secure than if you used an enterprise cloud provider is zero. Oracle Cloud will be more secure than any individual customer could hope to be.” A company that implements Oracle ERP Cloud puts their data security in Oracle’s hands, which allows them to draw on the collected technological expertise and datacenter footprint of one of the largest tech companies in the world. Patches install automatically, updates roll out immediately on a systemwide basis, and data can be backed up at any (or several) of nearly two dozen dedicated Oracle datacenters.
This last point goes hand in hand with the innovation upside to cloud ERP. Thousands of Oracle developers, engineers, and analysts are dedicated, on a full-time basis, to improving and extending the functionality of Oracle ERP Cloud. This often means that updates roll out in a matter of weeks and are an included benefit of a customer’s subscription. An on-premises ERP system might go years without an update as companies look to save on software expenses, leaving them with increasingly outdated technology in an increasingly competitive world.