Can ERP managed services extend the life of on-premises ERP?

August, 2023

Cloud computing is becoming increasingly popular, but what if you choose to keep your on-premises ERP system? 

Halfway measures are often the best course of action for many companies. Their present systems are frequently hosted by ERP managed services companies. In this way, businesses can benefit from cloud computing without having to give up their old ERP system.

One of the many benefits is that freeing IT from maintaining and upgrading on-premises infrastructure is the most significant advantage. A service provider's cloud can better match processing and storage capacity to demand variations, allowing for cost savings and performance gains while also reducing downtime and downtime-related issues. 

A legacy ERP system's lifespan may be extended by using ERP managed services, but how? What kind of cloud is the most popular? And how do you know when it's time to convert to a SaaS ERP service?

Answers to these questions are provided by James Anthony and Dermot Murray in this podcast. They work for Inoapps, a managed service provider and consultancy company in Aberdeen, Scotland, that specialises in Oracle E-Business Suite and Oracle Cloud. They are the chief technology officer and vice president of technology, respectively.

Confronting the cloud ERP conundrum

As an Oracle partner, Inoapps actively promotes Oracle's SaaS ERP products, particularly Oracle Cloud ERP and Cloud HCM. According to Murray, it was the UK's first firm to use Oracle Cloud ERP internally. It also manages Oracle E-Business Suite, one of Oracle's on-premises ERP packages.

"More E-Business clients are realising the benefits of cloud [and] current best practises, improved usability, and new tool capabilities, supporting the transfer from E-Business to [Cloud ERP]," he concluded.

Some firms use E-Business Suite capabilities that aren't available in the Oracle Cloud, according to him. Before shifting to the cloud, many companies have spent a great deal of effort tailoring their ERP to meet their specific business needs. When it comes to migrating to a cloud ERP system, some organisations just aren't ready.

According to Murray, "E-Business is still a viable platform for many firms."

The Goldilocks cloud solution

On the cloud side, Murray is in charge of Inoapps' applications, which generally refers to SaaS. As for Anthony, he manages the infrastructure, which includes Oracle middleware and databases, on which E-Business Suite customers may "lift and shift" their ERP without making the far larger jump to SaaS, which he views as a long-term strategy.

As Anthony said, "I'm seeing a growing number of people looking to do that."

Despite this, the need to migrate everything to the cloud is becoming more pressing. According to him, the majority of Oracle's clients had already migrated to the cloud using low-hanging fruit from specialist suppliers with software that was easier to shift to the cloud.

When we looked at many people's cloud migration project plans three or four years ago, the Oracle stuff got pushed to the right because it was huge and scary. As you may guess, they're heavily intertwined. Now groups are saying, "We have to do something."