This blog contains Reason #3-5. For the first part of my blog series, please visit our link.
Reason #3 Save Money and get out of the expensive upgrade cycle
Cloud applications have much more rapid upgrade cycles, which means business problems will be solved more quickly, and no longer do you have to wait to upgrade or skip upgrades. Enterprises typically only upgrade on-premise applications on a limited basis, often skipping a version or two due to the large effort, expense and disruption associated with the process. Cloud applications change this paradigm, as Oracle Cloud customers get new functionality as it is released with much less cost, effort and interruption. Costs are consistent month to month without the large spike every time an upgrade is needed. Take advantage of the economies of scale within the cloud, such that your no longer have to take time and effort to research the bug fixes and selectively apply/test them. When a bug is found, either by you or another client, that bug gets fixed across the whole install base rather than each client applying the fix one at a time. This eliminates tons of effort related to bug and break fixes, as you no longer have to apply individual fixes or patches and not worry about regression testing them.
Not only do you get out of the upgrade cycle that has likely dominated much of effort in maintaining your on-premise system, you save money in many other ways. You no longer have to maintain disaster recovery and protection and no longer host your environments in multiple data centers, Oracle takes care of disaster recovery and back up for you. You no longer have to worry about scaleablity and figuring out what additional software licenses, servers and storage capacity will be required as your business grows.
Reason #4 Focus on your core business
Unless your core business is IT, running your own applications isn’t necessarily strategic. Even if you do IT better than your competition does this give you an advantage? Most likely, not. You are better off focusing on your core business and let IT be handled by a vendor. Especially for back office systems such as ERP, HCM and Supply Chain. With on premise applications, an enterprise is forced to devote some of the IT budget to supporting and upgrading these applications. Typically this provides neither competitive advantage nor the most cost effective way to run your operations. With cloud applications both these problems can be solved by reducing costs and letting the vendor manage the applications. With cloud applications your enterprise can devote energy towards HOW applications are used rather than the logistics of keeping the applications running. It is the use of the applications and business insights that can be drawn from the applications that can bring competitive advantage. As we’ve mentioned before, leverage the advantages of the cloud paradigm.
Reason #5 Social, Mobile and Business Intelligence/Analytics are built in
Dashboards and reports are also delivered along with reporting tools designed for the end user to be able to create and view reports without requiring any developer involvement.