On Premises vs. the Oracle Cloud – How to Know Which Oracle System Is Right for Your Needs

In our last two articles from this in-depth, four-part series all about choosing between Oracle Cloud technology and Oracle on-premises solutions, we discussed the surprising truth business leaders need to know about Oracle ERP Cloud and talked about your various options during your Oracle system selection process.

In part 3 of the series, we’ll discuss a step-by-step method that will help you start framing your future cloud technology strategy, while also keeping sight of the possibilities that still remain in your on-premises system.

Strategizing, Step by Step

Here at Centroid, we’ve had 20+ years of experience working with Oracle systems. Over the years, we’ve found that the best approach business leaders can take to identify and determine the right Oracle system for their needs is to follow a proven, step-by-step process.

There are only three steps, but each one will take work on your end. Are you up to the challenge?

1. Decide where you want to be in 1, 5, 10, and 20 years

With the fast pace of business these days, many business leaders find it hard to plan past this quarter. However, advance planning is important because, without a clear map, you’ll likely end up wasting time chasing opportunities that lead you away from your goals.

Leaders who plan 1-5 years in the future have a good start on their planning process, but since your Oracle system should meet your needs for at least a decade, you’ll want to plan at least that far in advance to ensure your system can keep up with you in the years to come.

Remember, however, that plans can (and usually do) change. Any roadmap you make for the next 1, 5, 10, or 20 years should provide flexibility, so you can pivot when you need to.

One of the competitive advantages to Oracle Cloud ERP is that it empowers you to pivot whenever you need to because it’s scalable, always up to date, and integrated with a mix-and-match ecosystem of add-ons you can chain together to meet your changing needs with ease.

2. Identify the challenges that stand in your way

Once you know where you want to be, it’s pretty easy to see the hurdles that block you from getting there. (In fact, sometimes all you can see are the obstacles ahead of you, but that’s another blog for another day. Here, we’ll talk about overcoming challenges, so you can stay on track to long-term success.)

After identifying your challenges, you’ll need to come up with creative solutions you can use to overcome them. Often, modern business leaders assume that adopting a “cloud first” strategy will empower them to magically fly over their obstacles, but unfortunately, technology does not solve business problems; technology can only solve tech problems.

If your obstacles lie in retaining your top talent, innovating to meet evolving customer demand, or aligning your corporate culture to your long-term goals… well, technology isn’t likely to help with those issues. You may need to address these challenges before searching for a new Oracle system because your company may transform quite a bit as you progressively overcome your obstacles.

If you identify that you have technology problems, look carefully at your cloud vs. on-premises options to see which solutions will best meet your needs. Up-to-date cloud technology can help you increase your business speed and productivity, but the cloud may not always offer the application maturity you’re looking for.

3. Align your Oracle software choices with your plans and Oracle’s plans

Your company is constantly changing, planning, and evolving – and so is Oracle. Larry Ellison, the CEO of Oracle, has been investing huge sums into R&D (around $5 billion per year, currently) for both cloud and on-premises Oracle systems, and the Oracle Lifetime Support guarantee means that your current on-premises Oracle software won’t be going away anytime soon.

Let us repeat that, for the record. Your on-premises Oracle software is not reaching End of Life and you don’t have to migrate to cloud applications if you don’t want to.

Since you have that freedom, it’s a smart idea to carefully investigate Oracle’s roadmap for cloud vs. on-premises software, so you can ensure that your technology choice meets your needs for decades.

Fortunately, Oracle’s roadmap for both cloud and on-premises applications extends far into the future. Want to know what Oracle has planned for the 2030s? You can find out – and you should find out before you make your decision on what kind of Oracle system you want.

However, even after completing all these steps, we’re still missing the big picture. The real question isn’t if you should retain your on-premises system, it’s whether that on-premises Oracle system of yours provides the best value to you over the long run.


Get the Gartner research report, “What Oracle ERP Customers Need to Know About Cloud Applications,” for clear advice on comparing on-premises maintenance fees to ongoing subscription costs, so you can determine the true value of your Oracle system.


Find out more about how to choose between on-premises and Oracle ERP Cloud in the next article of the blog series.