Large commercial users of Oracle products fail to understand that moving applications to the cloud means business transformation – notoriously difficult and organizationally complex – and not just a technical project.
According to Gartner, although Oracle Cloud Application (OCA) products are maturing, users haven’t understood what migrating their on-premises applications really means.
“Companies moving to OCA fail to understand that SaaS does not allow customization, only configuration. The OCA transition is a business transformation, not a technical migration,” warns a Gartner research article.
The message was previously directed at SAP enterprise software users, who are also facing migration to the cloud. Oliver Betz, SVP responsible for product management for SAP S/4HANA, told customers in 2020 that they wouldn’t be able to have the changes they have in the on-premises world with the move to software as a service. “That’s not how the cloud works,” he said.
Oracle users considering migrating to the cloud face a similar problem, says Gartner.
Still, help is at hand in the form of business consultants gobbling up work with OCA migrations. Collectively, service providers generated $15.4 billion in revenue from OCA-related services, Gartner found.
By the end of 2024, 75% of Oracle Application Services revenue will be cloud-related as large organizations commit to moving to whiter, fluffier stuff, the analyst said.
As of the same date, 70% of large Oracle ERP deployments will be executed primarily by remote implementation teams rather than onsite.
Of Oracle applications implemented as SaaS, 60% are related to human resources or enterprise resource planning. One in ten relate to advertising and customer experience, while 15% involve supply chain applications. The remaining 15% is in the new area of industrial applications, and Gartner expects this to be the place to expand as Oracle invests.
You can forget about your fancy ERP customizations because that’s not how it works in the cloud, SAP’s Oliver Betz tells users
Gartner rated consultants claiming to help with business transformation related to moving applications to the cloud. Deloitte, Accenture, PwC and KPMG were the top four, in that order. The top four for technical migration were Oracle, Cognizant, Inspirage and Wipro respectively. ®