Oracle EBS User Survey: Quantifying the Cloudy Future
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The Spinnaker Support survey of Oracle EBS users indicates that many are uncertain about the future of Oracle EBS, with only 27% believing in its continued development and support. A significant portion of respondents reported issues with Oracle support, expressing concerns over the unclear roadmap and high costs associated with staying on Oracle’s platform. As a result, organizations are increasingly considering third-party support options as a cost-effective alternative to Oracle's services.
![© 2015 Spinnaker Support, LLC – all rights reserved Private, Proprietary, & Confidential
[ Some organizations are not upgrading – or deploying updates – to avoid spending on low-value enhancements. ]
Why not
upgrade
Currentversionmeetsbusinessneeds 64%
29%
21%
Tooexpensivetoupgrade
Notenoughnewandvaluablefunctionality
Respondents allowed to choose more than one answer.](https://image.slidesharecdn.com/ebssurveyebookcopy-150724202145-lva1-app6892/85/Oracle-EBS-User-Survey-Quantifying-the-Cloudy-Future-12-320.jpg)
Oracle EBS User Survey: Quantifying the Cloudy Future
- 1. June 30, 2015 © 2015 Spinnaker Support, LLC – all rights reserved Private, Proprietary, & Confidential Oracle EBS User Survey:
- 2. © 2015 Spinnaker Support, LLC – all rights reserved Private, Proprietary, & Confidential Survey Introduction Oracle’s last significant EBS release was R12.2, launched in 2013. Oracle has not announced a R12.3 or R13, according to roadmaps published through mid-2015. Oracle promotes heavily their new cloud applications and their intention to be #1. A growing number of organizations are adopting third-party support to gain superior support for a fraction of the cost and to navigate through the uncertain future of EBS and cloud options. In May and June, 2015, Spinnaker Support reached out to more than 7,000 Oracle EBS users in EMEA and North America to learn more about their experiences and opinions. Respondents were asked to assess what they like and what concerns them about their Oracle-provided EBS support. Disclaimer: The takeaways and descriptive text found within this survey report are based on survey responses. Survey results show that some customers question the future of EBS and the value of Oracle support services.
- 3. © 2015 Spinnaker Support, LLC – all rights reserved Private, Proprietary, & Confidential 1 2 3 4 We asked, How Confident Are You In Oracle’s Continued EBS Development and Support? Only 27% of customers surveyed see a "bright future" in Oracle’s continued EBS development and support. It has been two years since a major release. Customers’ top concerns: • Unclear roadmap • Few new planned future features • Oracle seems to want customers to migrate from EBS Only 14% of customers surveyed plan to move to a cloud ERP from Oracle or other companies. Top reasons to stick with EBS: • Switching costs too high • Not enough capabilities in cloud • EBS works well enough 83% experienced issues with Oracle Support, such as: • Unsupported customizations • Unsatisfactory quality and speed of issue resolution and bug fixes • Costs, including unfavorable contract terms Recommendation EBS customers who have a stable environment - current version meets current needs, no planned upgrades - should consider switching to third-party support to cut costs and support issues, especially if their EBS deployment has numerous customizations. Key Takeaways
- 4. © 2015 Spinnaker Support, LLC – all rights reserved Private, Proprietary, & Confidential ComputerWeekly.com (UK) and the UK Oracle User Group found that a third of organizations have not yet upgraded to Release 12. Oracle EBS R11.5.10 is moving to Sustaining Support at the end of this year. With this change, customers will pay more to Oracle. Concurrently, customers lose bug fixes and tax / regulatory software updates. releaseEBS do you run What 68% 32% R12 R11.5.10orearlier “sustainingsupport”
- 5. © 2015 Spinnaker Support, LLC – all rights reserved Private, Proprietary, & Confidential MainEBSModules DatabaseVersion running What are you 37% 95% 56% 58% Financial Management Human Capital Management Manufacturing and Supply Chain Management Advanced Procurement CRM 32% 12c 10g 11g 4% 9% 95% Respondents allowed to choose more than one answer.
- 6. © 2015 Spinnaker Support, LLC – all rights reserved Private, Proprietary, & Confidential Unclear roadmap 41% Bright future 27% Few new future features 23% Oracle wants us to switch to cloud 9% TheView: Foggy Future73% Oracle’s last significant EBS release was R12.2, launched in mid-2013. Oracle has not announced a R12.3 or R13, according to roadmaps published through mid-2015. HowConfidentAreYouInOracle’sContinued EBSDevelopmentandSupport? Only27%seea BrightFutureforEBS
- 7. © 2015 Spinnaker Support, LLC – all rights reserved Private, Proprietary, & Confidential Oracle tells customers to go to the cloud, intends to become #1 in the cloud, and pays sales reps accordingly The Forecast: #1In The Cloud Oracle Presentation by Larry Ellison and Mark Hurd – Forbes, 2015 7xOracle Sales Commission to sell Cloud apps versus additional EBS seats or modules – The Register, UK 19 March 2015 All those sales people are running into customers saying: ‘You need to go to the cloud.’ Cloudy
- 8. © 2015 Spinnaker Support, LLC – all rights reserved Private, Proprietary, & Confidential 59% 32% 9% Uncertain No Yes Does Your Organization Plan to Move to an Oracle Cloud Suite within the Next 1-3 Years Only 9%will switch to what Larry Ellison calls “the most complete Cloud Suite”. SilverLining Oracle No Cloud in the 18% 41% 47% 35% 35% 29% 24% Unclear roadmap Better software/Saas available elsewhere Avoid increased vendor leverage Won’t really save Not enough capabilities Switching and reintegration costs not worth it EBS works well enough
- 9. © 2015 Spinnaker Support, LLC – all rights reserved Private, Proprietary, & Confidential Does Your Organization Plan to Move to a Non-Oracle Cloud Suite, Such As Callidus, Epicor, Infor, Kenandy, NetSuite, Plex, QAD, Rootstock, Sage, or SAP? other Clouds Many Uncertain – Directions CustomersarenotrushingtomigratetheirERPtothecloud 58%5% 37% Yes No Uncertain Respondents allowed to choose more than one answer.
- 10. © 2015 Spinnaker Support, LLC – all rights reserved Private, Proprietary, & Confidential 37% 63% 1-2 years 3-5 years Uncertain 57% 14% No Yes 29% planDo you to R12upgrade to Customers might consider upgrading for a variety of reasons such as adding capabilities, and as a result experience decreased support costs. However, Deloitte, ePrentise, and ComputerWeekly report that the migration can cost $1 million dollars to tens of millions. If Yes, When?
- 11. © 2015 Spinnaker Support, LLC – all rights reserved Private, Proprietary, & Confidential 32% 68% 1-2 years 3-5 years Yes 47% Uncertain 18% No 35% planDo you upgrades R12to deploy Updates can cost hundreds of thousands of dollars. 53% of customers surveyed do not have definite plans to deploy upgrades. This could indicate a mature software environment. These customers might want to consider ways to cut their support costs, such as by moving to third-party support. If Yes, When?
- 12. © 2015 Spinnaker Support, LLC – all rights reserved Private, Proprietary, & Confidential [ Some organizations are not upgrading – or deploying updates – to avoid spending on low-value enhancements. ] Why not upgrade Currentversionmeetsbusinessneeds 64% 29% 21% Tooexpensivetoupgrade Notenoughnewandvaluablefunctionality Respondents allowed to choose more than one answer.
- 13. © 2015 Spinnaker Support, LLC – all rights reserved Private, Proprietary, & Confidential EBS customers expend 22% of their software license costs on annual support services. 83% experienced issues with Oracle Support: 43% consider customization support important. Customizations are not supported by Oracle, which increases internal support costs. However, most third-party providers support customizations. Numerous respondents reported issues with the quality and speed of issue resolution, such as having to escalate, explaining issues repeatedly, and waiting for answers and bug fixes. Many respondents reported issues with costs, including unfavorable contract terms such as repricing, matching across instances, legacy binding, and paying support for unused shelfware. Learn more in the article, “Top 5 Ways Oracle Makes You See Red.” any of the following encounteredHave you challenges with Oracle EBS Support 26% 22% 17% 16% 4% 39% 43% 35% 33% 31% 30% Forced migrations Not a good customer experience Haven’t experienced issues with Oracle support Time-consuming self service Customizations not supported Slowing issue resolution Missing skill sets / Have to escalate Contracts force excessive costs Less service for higher cost Explain same problem repeatedly Slow or expensive bug fixes Respondents allowed to choose more than one answer.
- 14. © 2015 Spinnaker Support, LLC – all rights reserved Private, Proprietary, & Confidential Some of the top reasons why EBS customers surveyed remain with Oracle Support is to obtain access to upgrades (43%) and regulatory / security updates (33%). Furthermore, many are locked into support contracts, either because of bundling with support for other software (30%) or because of recent renewals (17%). It should be noted that 25% are happy enough with their service levels, despite any issues they have experienced with Oracle Support. challenges, Despite from Oracle software support why have you remained on 0% 20% 30%10% 40% 50% AbilitytoacquiremoreOracleproducts Back-feesifweleaveandreengage Justrenewedagreements Happyenoughwithservicelevel Notfamiliarwithalternatives LockedintoEBSsupportwithotherproducts Abilitytoobtainregulatoryandsecurityupdates Continualaccesstoupgrades Respondents allowed to choose more than one answer.
- 15. © 2015 Spinnaker Support, LLC – all rights reserved Private, Proprietary, & Confidential The word is getting out. Increasingly more organizations are displacing Oracle EBS-provided software support with third-party support. Analyst firms, like Gartner, are pushing out more and more information validating the advantages of third-party alternatives. Myths are getting debunked. Oracle EBS users can restore great support, pay a lot less, obtain tax and regulatory updates (including payroll), and purchase new Oracle EBS licenses - all while under a third-party support contract. Their ability to re-engage with Oracle EBS support in the future is never hindered. Has your organization third-party considered services EBS support Yes 52% 48% No/ Unsure
- 16. © 2015 Spinnaker Support, LLC – all rights reserved Private, Proprietary, & Confidential What would cause toyour organization consider third-party support Migrating to a new application Superior service Financial stress Stable environment/no planned upgrades Uncertain roadmap Greater value 38% 33% 32% 30% 26% 24% Respondents allowed to choose more than one answer.
- 17. © 2015 Spinnaker Support, LLC – all rights reserved Private, Proprietary, & Confidential© 2015 Spinnaker Support, LLC – all rights reserved Private, Proprietary, & Confidential Spinnaker Support Great Alternative for EBS users provides a About Spinnaker Support Spinnaker Support has steadily emerged as the leading global provider of third-party support and managed services for Oracle and SAP enterprise applications and database software. According to our more than 400 clients, spanning over 70 countries, we consistently deliver to them a higher caliber of service for a fraction of what they’ve previously paid. We help keep their Oracle and SAP software more available, adaptable through constant change, and decidedly more valuable with the instant ROI we provide. Spinnaker Support headquarters are in Denver, Colorado with regional operations centers located in London, Singapore, and Mumbai. We support SAP, Oracle E-Business Suite, JD Edwards, Siebel CRM, and Oracle Database products.