Enterprise Performance Management (EPM) in the Cloud or On-Premises?
Author: Rahul Sharma | Director, EPM Practice | Accelalpha
Author: Nitesh Indar Jadhav | Principal Consultant, EPM Practice | Accelalpha
With vastly improved network speeds, secure internet connections, a focus on reducing capital expenditure, and the new normal of working from home, cloud-based applications are the strong front runners for enterprise performance management solutions. Users want to reduce manual tasks which are error prone and streamline IT related activities to spend more time on core business activities.
Oracle’s recent customer survey shows that 55% of FP&A users have reduced their dependency on spreadsheets and are willing to use a financial close and FP&A software solution. Organizations are focusing on an IT landscape that is leaner, with reduced Infrastructure deployment and maintenance costs, and with simpler, faster implementations. Oracle’s customer survey also found that approximately 78% of organizations who already have one or more EPM processes in the cloud said they would be likely or very likely to move more processes to the cloud.
Reasons to Move to the Cloud
Functionality
Cloud solutions go above and beyond the on-prem applications to provide solutions that employ industry best practices giving an opportunity to rationalize existing FP&A processes. For example, Oracle EPM in the cloud is not developed to simply mimic the functionality of its on-premises counterpart.
Cost
The total cost of ownership is an important factor to consider when choosing an EPM solution. While conventional wisdom dictates that for large scale implementations an on-premises solution is cost-effective, a more thorough assessment will reveal that an EPM Cloud offering, is actually less expensive and covers almost every EPM requirement an organization may have.
Customers Agree that the Cloud is Best for Security and Integration
Since Oracle EPM Cloud’s inception in 2014, hundreds of organizations have implemented it and they vouch for the robust security framework implemented by Oracle. Scalability is also not a concern today as new cloud solutions allow for cross domain connections as well as fast hybrid on-premises to cloud connections.
Cloud and On-Premises Direct Comparison
Cloud | On-Premises | |
Upfront Investment | Lower costs up front with a ready to use cloud instance | High up front infrastructure and set up costs |
Implementation Time | Faster implementation with ready to use modules and pre-built objects | Longer set up time because the system must be built from scratch |
Improvement in Business Process | Opportunity to improve current processes & leverage best practices | Processes continue to work as before with less ability to change |
Unified User Experience | Modern architecture provides a consistent user experience | Built on two pillars: HFM & Essbase each with different user experiences |
App Updates | Quarterly updates performed by Oracle | Updates every 2 to 4 years and has to be implemented by the client |
Maintenance Overhead | Disaster recovery, server monitoring is done by Oracle in the cloud | Customer is responsible for disaster recovery and maintenance procedures |
Scalability and Security | Can subscribe to multiple domains with seamless connectivity | No limit to the number of applications that can be built |
Cloud Migration from On-Premises
For organizations that have been using Oracle Hyperion on-premises for years, this is the right time to evaluate migration to the cloud. That is because EPM cloud applications have matured into a robust and more complete solution. With the experience they have gained from working with an on-premises EPM solution for so long, organizations know exactly what they need from EPM in the cloud.
For new entrants or organizations considering a move to the cloud, the pandemic has provided an opportunity to evaluate potential problems with their current business processes so it could be the right time to move to a more innovative and connected solution.
There are Two Ways to Manage Your Cloud Migration
Big Bang
This approach involves all solutions (Consolidation, Planning, and Reporting), all stakeholders and systems that need to be integrated right from the start. A plan can be developed to migrate all the financial applications into the cloud in one go. This approach is recommended for small or medium sized business or for current on-premises EPM users with relatively simple environments.
Step by Step
This approach migrates existing on-premises applications to the cloud in stages, starting with the most straightforward solutions first. For example, modules like Workforce and Capex can be moved into the cloud first and then organizations can advance to migrate more complex applications. This step-by-step approach is well supported with integrations between on-premises applications and the cloud. This approach to cloud migration works well for large organizations with complex environments.
Achieving Your Business Goals
After choosing the right cloud migration approach, we recommend that during the cloud migration you leverage the latest cloud features and functionalities to maximize the benefit of your cloud investment. Accelalpha has helped clients with a customized approach to cloud migration and with enhancements for their on-premises environment. Accelalpha provides these services based on our client’s unique landscape, complexity, and strategic roadmap. We are experts in cloud migration and have also helped clients with on-premises installation and upgrade. Our experience will help you to decide what is best for you. Contact us today to discuss your EPM update or cloud migration.