Which Path Should Clients and Consultants Take? Fale Conosco
Navigating the Future:
One of the questions I receive most often is: Is EBS dead? What is the future of Oracle E-Business Suite (EBS)?
Hello, I'm Éric Machado, CEO of Revna Tecnologia. I wrote this article, somewhat extensive, but necessary, to address a recurring theme in our ecosystem. Writing this article was a significant challenge. It involved an impartial deep dive into some topics that have become taboos, especially in our ecosystem in Brazil, when discussing the future of Oracle E-Business Suite and the clients and consultants who use it. I invite everyone to a reflective reading about my perspective on what is genuinely happening in the world of Oracle EBS. I hope this article serves as a resource for you and your organization as you navigate through the opportunities offered by Oracle solutions. Enjoy the read!
Since Oracle launched its new ERP, Oracle Fusion Cloud, many customers and consultants who currently use Oracle E-Business Suite (EBS) are concerned about the future. They often feel uncertain about how long Oracle will maintain the Oracle E-Business Suite and whether it is already appropriate to consider replacing the ERP with the new Oracle Fusion Cloud, or simply taking the current Oracle E-Business Suite (EBS) to run in the cloud.
With the aim of clarifying these issues, we decided to publish this material where we will bring valuable information about the current scenario of migration to the cloud and the important considerations that companies should keep in mind when making this strategic decision.
In today’s global and integrated business scenario, Oracle E-Business Suite (EBS) has played a crucial role, enabling organizations to make better decisions, reduce costs, and increase performance. But what does the future hold for this suite of applications and for the companies that depend on it?
The Solid Journey of EBS: Insights from Cliff Godwin - Oracle's VP
After studying various sources, including blogs, articles, official documents, and particularly a presentation made by Oracle's then Vice President, Cliff Godwin, available on the AIOUG (All India Oracle Users Group) YouTube channel in December 2021, I highlight the key information that provides a clear overview of the future of Oracle E-Business Suite.
Cliff Godwin, Senior VP of Application Development at Oracle, shared valuable information about the future of EBS. Godwin joined Oracle in 1980 and, for much of his career, was part of the leadership team of Oracle Applications Business. Before his current position, he led the Applications Technology Group, which aimed to ensure that Oracle E-Business Suite fully benefited from Oracle's system technologies. With a strong academic background, Godwin holds a master's degree in mathematics and operational research from Stanford University, as well as an MBA from Harvard Business School. His expertise was crucial in creating common objects and services adopted throughout the Oracle Business Suite.
In the YouTube session, Godwin provided information about recent developments and projections for EBS. He emphasized the vital role that EBS plays in the operations of various organizations, including large corporations and government entities. Additionally, he highlighted Oracle's emphasis on continuous innovation, showing how, instead of opting for massive and disruptive updates, the company seeks to offer progressive enhancements that organizations can incorporate at the pace they deem appropriate.
From Starbucks Coffee to Nuclear Submarines: The Surprising Power of Oracle E-Business Suite Worldwide:
According to Godwin, it's vital to recognize that even with Oracle’s increasing emphasis on cloud and SaaS products, many organizations still heavily rely on the E-Business Suite. Oracle's extension of support commitment reflects the ongoing relevance of this platform.Global corporations continue to depend on the E-Business Suite for their critical operations. For instance:
• Dell computers are shipped using the E-Business Suite.
• Starbucks’ coffee is roasted and transported with the help of this platform.
• GE Healthcare employs the E-Business Suite in the production of all its medical devices.
• US Defense: Two major American defense contractors are building nuclear submarines with the assistance of the E-Business Suite.
• Bechtel: The world’s largest civil engineering company, utilizes EBS in all its projects, especially in acquisitions.
• DP World: A significant maritime port operator that handles tens of millions of containers annually.
• Midea Group: An appliance manufacturer with a presence in over 200 countries.
• Qualcomm: A leading company in wireless communication technology.
• Cisco Systems: A multinational technology company focusing on networking.
• Boeing: One of the world's largest manufacturers of aircraft and defense equipment.
• LKQ: Implementing the E-Business Suite across Europe.
Each example underscores the Suite’s versatility and robustness, proving its capability to support a diverse range of industries and sectors, from daily commodities like coffee to highly complex nuclear submarine constructions. These instances illuminate the E-Business Suite’s adaptability, scalability, and continued relevance in today’s fast-evolving business landscape.
From National Security and Defense to the Well-Being of U.S. Seniors: The E-Business Suite at the Heart of American Governance
• U.S. Government Agencies: 70 U.S. government agencies, including most cabinet-level agencies, utilize the E-Business Suite for their financial operations and, in many cases, other operational functions.
• Medicare: All Medicare payments in the United States are processed through the E-Business Suite. This encompasses all health insurance claims and medical care reimbursements for citizens aged 65 and over.
From UK Hospitals to Middle Eastern Governments:
• United Kingdom: Every payment of the National Health Service is processed through the E-Business Suite. The British government has 17 departments sharing an instance of the software. Payments to the British army are also made through this system.
• Middle East: Various governments in the region, including Dubai and Kuwait, have implemented a central instance of the E-Business Suite to manage all governmental functions.
The E-Business Suite boasts a wide array of clients, including some of the largest and most complex organizations worldwide. Hence, it is apparent that this platform is not fading away anytime soon. Organizations can rely on the ongoing availability of the E-Business Suite for their future plans.
Evolution and Innovation
In the video, the vice president also comments on various improvements to the EBS, highlighting the following areas of enhancement:
• User Experience: Oracle has been enhancing the user interface and usability of EBS, offering a modern and intuitive experience for users.
• Advanced Automation: Process automation is being enhanced to increase efficiency and reduce the need for manual tasks. This includes features like workflow automation, machine learning, and artificial intelligence.
• Enterprise Command Centers: These are dashboards that allow users to view information from various sources in one place. Additionally, Oracle is working on new user interface features with the development of user-friendly solutions, accessible via smart devices, using HTML user interfaces.
• Cloud Integration: EBS is being integrated with the cloud to allow for greater flexibility and scalability. Oracle is investing in cloud solutions that integrate seamlessly with EBS, allowing users to reap the benefits of cloud computing.
• Functional Improvements: Oracle will continue to enhance the functional features of EBS, adding new functionalities and adapting to changes in business needs.
Upgrade Flexibility
Godwin emphasizes that since 2021, Oracle has made significant changes in how new features are delivered in EBS. Version 12-2 of E-Business Suite introduced the concept of "continuous innovation". EBS now offers unprecedented flexibility in upgrades. Organizations can choose to update only certain system components, depending on their individual needs.
Once customers migrate to version 12-2, they won't need to perform major upgrades to access new features in the future. For example, one can update the finance module without changing other functions. This choice flexibility means there’s no longer the need for major upgrades where the entire system must be changed at once.
A new way of updating EBS was also introduced, decoupling application and middleware. This means that major upgrades won’t be necessary in the future. Instead, organizations can advance their applications to newer versions without changing the middleware. This layer can even run on Oracle’s cloud infrastructure.
With continuous innovation, Oracle allows companies to make changes whenever they want, at the pace they desire. This modular approach to upgrading and improvement means that businesses can quickly adapt to changes in market demands without having to reinvent their systems.
There is an established pattern of delivering an annual update for E-Business Suite 12-2. These updates include cumulative fixes and new features developed throughout the year. Godwin also has a blog on Oracle's website, and his latest post was in December 2022.
Oracle's Unwavering Commitment: Support for E-Business Suite Extended to 2034 and Beyond!
When we look at Oracle's website for the EBS support roadmap, we notice that the company has reaffirmed its solid commitment to the E-Business Suite, ensuring continuous support until at least the end of 2034. Interestingly, this date has been regularly extended by Oracle, demonstrating a long-term commitment to its users.
This "Premier" support commitment until 2034 should not be interpreted as an end date for the E-Business Suite. Instead, it is Oracle's current assurance, which has a policy of offering a continuous ("rolling") 10-year window of "Premier" support. Considering that companies' IT plans often do not exceed a ten-year period, Oracle's commitment ensures that the E-Business Suite will continue to be a reliable option for strategic planning, avoiding the need for urgent migrations.
Oracle's intention is that this assurance exceeds the planning expectations of any company. And, to add even more confidence, there are rumors that this commitment date may be extended next year, possibly to 2035.
March 2023: EBS 12.2 Premier Support extended through at least 203
Ensuring Stability: The Upgrade Journey from Oracle EBS 12-1 to 12-2
On the company's website, there is a very relevant piece of information: for those who are still using older versions of EBS, such as 12-1, it is essential to be aware that "Premier" support for this version has come to an end. It is crucial to consider an upgrade to version 12.2 of the application suite through an upgrade project.
If you are running Oracle E-Business Suite Release 12.1.3 and plan to upgrade to Oracle E-Business Suite Release 12.2 or migrate to Oracle SaaS, you can hire Oracle Market - Targeted Support for Oracle E-Business Suite 12.1, offered by Oracle Advanced Customer Services (ACS), to bridge the support gap, which will provide the necessary bug fixes to keep systems stable and secure. This support is an indication of Oracle's ongoing commitment to its products and customers. Oracle offers different levels of support for EBS to meet the unique needs of various customers.
Should I Replace My Oracle E-Business Suite (EBS) with Oracle Fusion Cloud?
I believe that the decision to switch from Oracle E-Business Suite (EBS) to Oracle Fusion Cloud is a strategic one and should be based on various considerations. Below are some points you should weigh when evaluating this change:
1. Current and Future Business Needs:
Assessment: Evaluate whether the current EBS meets your needs. Oracle Fusion Cloud may offer additional features and functionalities that EBS lacks or requires extensive customizations.
Customization:In contrast, your EBS is probably customized and possesses functionalities not addressed by Oracle Fusion Cloud.
2. Total Cost of Ownership (TCO):
- Maintenance: Consider the costs associated with maintaining, updating, and customizing EBS in comparison to the subscription-based cost structure of Oracle Fusion Cloud.
3. Innovation and Updates:
- Upgrades: Oracle Fusion Cloud is regularly updated with new features and innovations. Ask yourself if your organization would benefit from this pace of innovation.
4. Mobility and Remote Access:
- Accessibility: If your company requires remote access and mobility, Oracle Fusion Cloud, being a cloud-based solution, natively offers these features.
5. Security:Protection: Although Oracle heavily invests in the security of its cloud solutions, evaluate your specific security and compliance needs and how they fit into a cloud versus on-premises environment.
6. IT Strategy and Organizational Direction:
- Cloud-First: If your organization is adopting a "cloud-first" strategy or plans to do so in the future, shifting to Oracle Fusion Cloud may align with this vision.
7. Brazilian Localizations:
- Fiscal Solutions Partner: Just as with Oracle EBS, integrating with a fiscal solutions partner is essential for Oracle Fusion Cloud to ensure compliance with Brazilian legal and fiscal requirements.
- Maturity Gap: Some aspects of Brazilian localization have not yet matured in Oracle Fusion Cloud compared to EBS. A notable example is the fiscal receipt and invoice area, which requires management by fiscal partners.
8. Integrations and Ecosystem:
- Migration Effort: Evaluate existing integrations with EBS and consider the effort required to migrate or recreate these integrations in Oracle Fusion Cloud.
9. Training and Adoption:
- User Resistance: Switching systems requires training and may meet user resistance. Consider the impact on employee morale and productivity during the transition.
10. Implementation Time and Resources:
- Transition Challenges: Moving to a new platform takes time, resources, and can present risks. Assess whether your organization has the necessary resources for a successful transition.
11. Support and Community:
- User Base: EBS has an established user base and an active community. Evaluate the support and resources available for Oracle Fusion Cloud compared to EBS.
12. Company Size:
- Flexibility vs. Agility: Larger companies with complex processes may prefer the flexibility and robustness of EBS. In contrast, growing or mid-sized companies might find Oracle Cloud more suitable for its agility and scalability.
13. Specific Sector:
- Industry Needs: Some industries have specific needs that may be better served by one system over the other. Evaluate the nuances of your industry’s requirements and align them with the features of each system.
14. Customization and Integration:
-EBS: EBS has a long history of customizations, while Oracle Fusion Cloud is designed to be more standardized, but with integration capability through APIs and PaaS.
-Customization Challenges: The challenges of customization should also be considered, as cloud ERP offers fewer opportunities for customization. Companies need to change the way they work to get the most value from the cloud solution. Broadly speaking, ERP standardization benefits sectors as a whole, but not individually companies, since each company and its processes are unique. Companies that use E-Business Suite have customized it to meet their requirements and peculiarities and have gained competitive advantages. If not properly evaluated when replacing ERP, these companies will lose their edge when processes are standardized after upgrading to cloud ERP.
-Gartner’s Insight: Although Oracle's initial intention was to provide a replacement for ERPs with equivalent functionalities, recent research by Gartner does not suggest this. This means that migrating from Oracle EBS to Fusion Cloud can involve high complexity and effort for feature adherence.
In Summary:
I believe that the decision to switch EBS for Oracle Fusion Cloud should be studied deeply and by a multidisciplinary team. It is important to carry out a detailed analysis, considering the above points and involving relevant stakeholders. It may also be helpful to consult Oracle specialists or partners for additional insights and guidance on migration.
Migrate Your On-Premise E-Business Suite to Oracle Cloud Infrastructure
If your E-Business Suite application is still being run locally in an on-premise installation, I understand that it’s time for your company to consider migrating to the cloud! And here is one of the best strategies for your company to start the move to cloud journey. This strategy is called 'lift and shift'.
According to Gartner, by 2025, 80% of companies will shut down their traditional data centers, compared to just 10% today.
The digital age has brought with it the cloud revolution, and EBS has not lagged behind in this advancement. Organizations are increasingly seeking solutions that offer performance, flexibility, scalability, cost reduction, simplified management, maintenance, and efficiency, and the cloud has become the answer to many of these demands.
By migrating your Oracle E-Business Suite (EBS) application from an on-premise environment to the cloud, you are making a strategic decision that offers several benefits, such as enhanced security, disaster recovery, and flexibility. By leveraging the capabilities of cloud services, third-party integrations, reference architectures, and best practices, your EBS application can be customized to meet the specific needs of your company.
Oracle has recognized this trend and, therefore, has significantly invested in integrating EBS with cloud solutions. This not only allows companies to easily migrate their data and operations to the cloud but also to integrate their existing EBS systems with other cloud-based solutions.
The advantage of this is twofold: organizations can continue to use the EBS functions they are familiar with, while at the same time benefiting from the advanced capabilities and flexibility that the cloud offers.
Oracle offers a range of cloud integration options that go beyond simple data storage. With specialized cloud services like Oracle Cloud Infrastructure (OCI), businesses can more effectively create, deploy, integrate, and extend their applications in EBS. OCI offers a host of benefits, including high availability, scalability, and a robust set of security features.
In addition, with the option of integrating EBS with Oracle Integration Cloud, businesses can easily connect applications, automate processes, and build applications more quickly. This is achieved through pre-built connectors, integration flows, and application templates that accelerate development and deployment.
We cannot leave out the various tools and services that Oracle has introduced that facilitate the transition to the cloud. These tools ensure that migration is as smooth as possible, minimizing disruptions and ensuring data integrity.
Coexistence is the Answer
At Revna, we highlight coexistence as the key strategy for our clients. This approach allows businesses to migrate and adapt gradually to cloud applications, ensuring a smooth and efficient transition. What makes this strategy particularly effective is the ability to integrate cloud applications harmoniously with legacy systems, creating a unified ecosystem. All of this is made possible thanks to the advanced cloud integration layer offered by Oracle.
Furthermore, the strategy is not limited to just migrating EBS to the cloud. Once your company adopts the cloud infrastructure, there is a broad range of Oracle cloud solutions and applications that can be deployed to complement and enhance EBS in the cloud. This allows businesses to "dehyrate" their dependency on critical processes in traditional ERP, progressively migrating to more innovative and efficient cloud solutions. Some of these solutions include cutting-edge applications like WMS Cloud, OTM Cloud, AI, SCM, IoT, Blockchain, Business Analytics, EPM, CX, Procurement, among others.
In summary, it's important to make clear that Oracle Fusion Cloud can work parallelly with EBS, for example, keeping Procurement in the Cloud and integrating it with the Purchasing (PO) of EBS, a model that is being implemented in some clients in Brazil.
What is the Future for EBS Consultants?
I believe that in a world of constant technological evolution, diversity in work teams becomes crucial. More experienced consultants, many with up to two decades of experience, bring with them a valuable history, a deep understanding of processes, and the nuances of the market. I, for example, am part of this wave of "old guard" consultants, having been immersed in Oracle EBS solutions for almost 25 years. For professionals like us to stay updated, Oracle, reinforcing its commitment to the community, offers courses and certifications in Cloud solutions, often at no cost.
On the other hand, the new generation of consultants, younger and sometimes faster in obtaining certifications, enters the market with a fresh and updated view of the latest technologies. Although they may occasionally lack the extensive practical experience of years of implementations, their theoretical and technical knowledge in the new solutions is undeniable.
The combination of these two profiles in a team is powerful and synergistic. The blend of the expertise and experience of veteran consultants with the energy, innovation, and technical focus of new professionals results in a balanced, rich, and productive approach. A diversified team like this is more apt to see holistic, innovative solutions adapted to the client's needs.
By adopting this approach, we not only strengthen our projects and solutions but also offer a more complete and adaptable service. And, undoubtedly, our clients will recognize and appreciate this inclusive and comprehensive strategy.
Conclusion:
Although Oracle is advancing in cloud solutions, large corporations and governments around the world still rely on EBS for crucial operations. Oracle has reinforced its commitment to EBS, offering support until at least 2034. The updates to EBS introduce significant improvements.
The decision to migrate from EBS to Fusion Cloud should be carefully weighed, considering various aspects. For companies not yet ready to fully detach from EBS, migrating to Oracle Cloud Infrastructure represents a strategic step into the irreversible universe of cloud computing. In this way, they capitalize on the advantages of the cloud without giving up a system that is already consolidated.
The coexistence strategy, which combines the use of EBS with cloud solutions, is highlighted as an ideal approach for migration and adaptation.
In the current context, experienced EBS consultants and the new wave of Oracle Fusion Cloud specialists play a synergistic vital role within projects. They blend decades of practical experience with updated technical expertise.
What I can affirm is that, regardless of the choice you and your company make, we will be by your side to support every step of this journey. We ensure a harmonious and efficient transition. Cloud is the future today.
See you soon!
CEO
Update: On March 21, 2024. Oracle announces that EBS support will be at least 2035. Click and see more:
About Revna:
Revna Technology is committed to guiding companies through careful planning for a smooth and effective migration to the cloud, ensuring they remain competitive and aligned with the digital future.
To assist companies on this cloud migration journey, Revna Technology, a firm specialized in technological solutions, stands out as a trusted partner. The company offers a comprehensive set of services including IT assessment, upgrade, ERP implementation, fiscal solutions, move to cloud projects, and cloud solutions support. Its team of experienced consultants works closely with companies, understanding their specific needs and developing a customized cloud migration strategy.
The transition from Oracle EBS to the cloud is a strategic and essential step for modern companies wishing to stay agile and competitive. Our team of highly qualified specialists is prepared to guide companies on their journey to the cloud, providing customized solutions and the best migration practices.
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Feel free to contact our team of experts to discuss your needs and help you understand the wide variety of benefits your company can take advantage of by partnering with Revna to utilize our services and plan your journey to the cloud.
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Sources:
https://www.oracle.com/applications/ebusiness
https://docs.oracle.com/cd/E72030_01/infoportal/ebsoc.html
https://www.youtube.com/watch?v=nArEdH0IJsE
https://blogs.oracle.com/authors/cliff-godwin
https://blogs.oracle.com/support/post/maximize-the-value-of-your-oracle-e-business-suite-investment
