Oracle Moves to the Cloud

It’s taken Oracle six years to move to their own cloud

And they’re still not done yet…

Oracle has recently been making noises about its successful transition to its own cloud services. There have been a lot of high-fives and back-slapping over the fact they have taken SIX YEARS to transition most of their business to their own cloud. The worst part though is that they aren’t even fully migrated yet; with accounts receivable, order management, and analytics still missing from Oracle’s cloud line-up.

Given that it has taken Oracle itself six years to only partially migrate to their own cloud – what timeline are you planning on?

Why has it taken so long?

To be blunt, because Oracle is using itself as a guinea pig to develop its own cloud services.

When they first started the move they were an unknown in the cloud arena, and have seemed to time the development of their cloud offering alongside their own transition into the cloud. This approach is the reason why it seems Oracle has taken so long, as they have been on the same cloud discovery process as their clients, all while selling them the dream of cloud at the same time. A dream they have yet to realise for themselves.

The Oracle cloud migration has involved gradually moving business processes, starting with smaller tactical moves of financial reporting, talent management and marketing in 2012 through 2014 — “things that surrounded our E-Business Suite on-premises infrastructure” Group Vice President Paolo Juvara said. And it has moved onto shifting more foundational systems: core HR and ERP, first to Oracle HCM Cloud in mid-2016, then Oracle ERP Cloud January 2018…

…The [Oracle] labs make a point of giving Oracle the exact versions of the SaaS applications that customers get. “We want to use our own experience to … validate that the products are functional and scalable and do meet the needs of an organization with the complexity of Oracle,” Juvara said. “Of course, also we want to use the Oracle use case to test new technologies [and] new ways of doing things.” (source)

This guinea pig approach of using itself to test its own products is probably why we hear that many of their cloud products are only fit for Oracle. We’ve spoken to many organisations considering the jump to cloud who have realised that the jump is too far. By this, we mean that the solutions they need from the Oracle cloud offering either:

  1. Don’t exist in the Oracle cloud (because Oracle haven’t built it for themselves yet), or
  2. They are too heavily customised for specific use cases (Oracle’s) that don’t fit their needs

So what’s next?

Oracle still haven’t fully transitioned to the cloud yet. The big missing pieces we’ve identified are modules for accounts receivables, order management, and Oracle’s global business intelligence infrastructure. But how long will these take to transition?

“As we moved the transactional system to cloud, we have made the conscious decision to try to leave the analytics as stable as possible, so we have integrated from cloud into our legacy on-premises warehouse,” Group Vice President Paolo Juvara said. “But we also want to move that to cloud,” and to a data warehouse built on the new Oracle Autonomous Database, taking advantage of the new technology to rebuild and redesign all of Oracle analytics…

…With the cloud products like ERP Cloud [and] HCM Cloud, there is embedded analytics — the Oracle Transactional Business Intelligence — but there is always a need for more sophisticated analysis — period over period, blending of data across multiple systems or multiple business functions — for which there is still a need of a warehouse,” Juvara said. “That is another big piece that we are working on.” (source)

It sounds like Oracle won’t be moving fully to the cloud anytime soon then…

Your cloud strategy? Don’t be a vendor’s next guinea pig

Because of their approach, Oracle has hit many of the same stumbling blocks and snags as their customers who are moving to the cloud.

An example of this was their piecemeal transition of one system at a time to the cloud. This meant that Oracle had to learn how to operate application-to-application integrations for the first time as they moved to a hybrid cloud system. They then realised their monitoring tools weren’t sufficient so they then had to quickly build up their capabilities there too. This two steps forward, one step back approach has been a consistent trend.

In the end, Oracle has built up their cloud strategy through trial and error but is now pushing that strategy as a one-size fits all solution, which it isn’t.

We want you to know that you have options. You don’t need to force the transition to the cloud while you (or the vendor) aren’t ready. Forget de-support dates and forced upgrades from the likes of Oracle and SAP, with a 3rd party support provider like Support Revolution, you can:

  • Stay on your current version for as long as you wish and still be fully supported (we even support all customisations)
  • Be sure of a great and attentive support service with our rigorous SLAs, ensuring you receive high-quality support 24/7
  • Save up to 90% on your support costs, which you can then invest in new technologies

Interested in learning more? Contact us today to talk to an advisor or use our savings calculator tool to see how much you can save.