For many organizations, “the cloud” sits at the very heart of digital transformation, but is it an inevitability? According to LogicMonitor’s Cloud Vision 2020 report, just 27% of enterprise workloads will remain on-premises by 2020. Within five years, the majority (53%) of respondents predicted the shift to cloud would be almost complete, with just 5% of workloads remaining on-premises.
This migration to cloud deployment is being driven by increased demands for agility, resilience and mobility. Naturally, for certain workloads, the appeal of ubiquitous access and the elimination of maintenance costs are appealing. However, there are still major concerns over security, governance and privacy when it comes to the cloud.
For Oracle customers, the numbers are a little more sceptical. The Gartner Report “What Oracle ERP customers need to know about Oracle Cloud Applications” (published in March 2018) is based on the strategic assumption that 55% of Oracle’s on-premises ERP customers will have moved 80% of their workloads to the cloud by 2021.
You don’t need to be great at maths to work out that this doesn’t come close to the 73% predicted in the LogicMonitor report. In fact, every report I read claims a different number! The reality is, there are as many arguments for the cloud as there are against. For most organizations, the future will lie in a hybrid infrastructure that features elements of on-premises, public and private cloud. Cloud migration is likely to be more of a phased transition and less a mass exodus.
This is a reality understood by Oracle. Despite rumours to the contrary, Oracle’s on-premises solutions are not going end-of-life. Most of the company’s revenues still come from sales and support of on-premises solutions and it continues to invest heavily in its non-cloud portfolio.
So where does this leave JDE E1 users? Oracle expects a significant proportion of customers to begin a migration to cloud applications at some point in the next five years, but the journey will be easier for some than others. We’ve already seen a trend for HCM and procurement workloads to move to the cloud, but larger (or heavily modified) on-premises installations are not going to be so easy to move.
With the journey to the cloud likely to take some time, JDE E1 customers will find themselves utilizing a mix of cloud and on-premises applications. For many, this may be the desired end-state, rather than a transitory position.
In this hybrid model, JDE E1 customers will need to have access to products and services that are deployment agnostic. By which I mean they should work equally well for customers who maintain on-premises solutions as those who adopt a cloud-first strategy.
The decision to move a workload to the cloud will be dependent upon several criteria, not least of which will be Oracle’s roadmap. With the adoption of a continuous delivery model for JDE E1 following release 9.2, the first step for most organizations should be to get code-current, then stay code-current. Once on the latest release, you will be able to access all the latest features and functionality and make better informed decisions about future deployments.
As a provider of platform and infrastructure agnostic products and services, DWS is ideally positioned to support hybrid deployments. Our impact analysis tool (Dimension Analyze™) can provide organizations with a detailed understanding of the implications of a change event project and our portfolio of testing planning and automation software (Focus™, SwifTest™ and LoadTest™) can reduce the burden of testing your upgrade or migration by up to 85%.
Find out more about our deployment agnostic solutions here.
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