ebs survey ebook...oracle wants us to switch to cloud 9% theview: foggy 73% future oracle’s last...

June 30, 2015

© 2015 Spinnaker Support, LLC – all rights reserved Private, Proprietary, & Confidential

Oracle EBSUser Survey:


Survey Introduction

Oracle’s last signi�cant 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.


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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

RecommendationEBS 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


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.

releaseEBSdo you run

What

68%32%

R12

R11.5.10 or earlier“sustaining support”


Main EBS Modules

Database Version

runningWhat are you

37%

95%56%

58%

FinancialManagement

Human CapitalManagement

Manufacturing and Supply Chain Management

Advanced Procurement CRM

32%

12c

10g

11g

4%

9%

95%

Respondents allowed to choose more than one answer.


Unclear roadmap

41%

Bright future

27%

Few new future features

23%

Oracle wants us to switch to cloud

9%

TheView: FoggyFuture73%

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.

How Confident Are You In Oracle’s Continued EBS Development and Support?

Only 27% see a Bright Future for EBS


Oracle tells customers to go to the cloud, intends to become #1 in the cloud, and pays sales reps accordingly

TheForecast:

#1In The Cloud

Oracle

Presentation by Larry Ellison and Mark Hurd – Forbes, 2015

7xOracle Sales Commissionto 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


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 elsewhereAvoid increased vendor leverage

Won’t really saveNot enough capabilities

Switching and reintegration costs not worth itEBS works well enough


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?

otherClouds

Many

Uncertain–

Directions

Customers are not rushing to migrate their ERP to the cloud

58%5% 37%

Yes No Uncertain



37% 63%

1-2 years

3-5 years

Uncertain57%

14%No

Yes 29%

planDo you toR12upgrade 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?


32% 68%

1-2 years

3-5 years

Yes47%

Uncertain18%

No35%

planDo you

upgradesR12to 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?


[ Some organizations are not upgrading – or deploying updates – to avoid spending on low-value enhancements. ]

Why notupgrade

Current version meets business needs 64%29%21%

Too expensive to upgrade

Not enough new and valuable functionality



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 withOracle EBS Support

26%22%

17%16%

4%

39%43%

35%33%

31%30%

Forced migrationsNot a good customer experience

Haven’t experienced issues with Oracle supportTime-consuming self service

Customizations not supported

Slowing issue resolutionMissing skill sets / Have to escalate

Contracts force excessive costsLess service for higher cost

Explain same problem repeatedlySlow or expensive bug fixes



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 Oraclesoftware support

why have youremained on

0% 20% 30%10% 40% 50%

Ability to acquire more Oracle productsBack-fees if we leave and reengage

Just renewed agreementsHappy enough with service level

Not familiar with alternativesLocked into EBS support with other products

Ability to obtain regulatory and security updatesContinual access to upgrades



The word is getting out. Increasingly more organizations are displacingOracle 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 yourorganization

third-party considered

servicesEBS support

Yes52%

48%

No/Unsure


What would causetoyour organization

consider third-party support

Migrating to a new application

Superior service

Financial stress

Stable environment/no planned upgrades

Uncertain roadmap

Greater value38%

33%32%

30%26%

24%


© 2015 Spinnaker Support, LLC – all rights reserved Private, Proprietary, & Confidential© 2015 Spinnaker Support, LLC – all rights reserved Private, Proprietary, & Confidential

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About Spinnaker SupportSpinnaker 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.

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