As businesses navigate the choppy waters of the post-pandemic economy, finding robust, sustainable methods to reduce costs is a key priority. According to Foundry’s State of the CIO 2022 research, 40% of IT decision makers are focused on modernisation. This is entirely understandable, as modernising strategic enterprise workloads underpins organisations’ efforts to drive business transformation through cost savings and business intelligence.
Oracle Enterprise Resource Planning (ERP) applications play a crucial role in day-to-day operations and can house decades of customer, employee and transactional data. They are typically mission-critical services with high recurring costs for software, hardware and headcount.
Building on a decade of experience of helping customers migrate applications, Amazon Web Services (AWS) now supports Oracle by offering focused solutions for organisations to migrate and deploy their ERP applications on the AWS cloud, allowing them to reduce total cost of ownership (TCO) and accelerate return on investment (ROI) while accessing all of the compute, data and storage capacity their ERP system needs.
Thanks to a secure, reliable and scalable cloud infrastructure that leverages more than 200 cloud native services, including artificial intelligence (AI) and machine learning (ML) capabilities, AWS delivers tailored scale and performance with granular billing options that meet every organisation’s needs.
The Boston Consulting Group (BCG) and McKinsey agree that customers can save up to 40% of IT operating and overhead costs by moving workloads to the cloud. But while these savings are noteworthy, they are not the cloud’s only source of value.
Beyond direct cost savings, organisations also benefit in terms of staff productivity, operational resilience and business agility. A recent study by IDC Research found that the average cost of IT infrastructure was 25% lower and 47% more efficient after an organisation moved to AWS.
Online marketplace Tata CLiQ, which connects customers in India with more than 1,200 brands across fashion and electronics, has used a private cloud to run its infrastructure since launching in 2016. Reliability and scalability were major challenges, however, with internal teams required to manually monitor systems and remediate issues 24/7. Downtime was frequent and costly.
Its Oracle ERP applications were among the first workloads to migrate to AWS Cloud. Three months later, the organisation’s infrastructure cost had already decreased by 30%. On-demand scaling and greater visibility into security and system operations drove continued cost and resource optimisation across the board.
Innovation is not immediately compatible with the traditional IT model, with the cost of failure looming large as on-premise infrastructure associated with failed experiments represents sunk costs. AWS research shows that customers save an average of 2.5 months in time-to-market when launching new applications on AWS while also offering 26.4% more new features, updates and fixes per release.
According to management consultancy Gartner, ERP strategies are increasingly evolving from a mesh of applications and platforms to a composable approach that merges dynamic business needs with application stability. Large companies that operate globally need ERP applications that cover multiple local country features, such as language support and tax calculation, with the added flexibility of last-mile extensions for different geographical and business execution needs.
For global enterprises, AWS Cloud with Intel® Xeon® Scalable processors represents an opportunity to adopt modern technologies with lower initial investment for subsidiaries. Thanks to its global infrastructure of 93 availability zones within 29 geographies, it can also reduce costs and increase technology choices for public sector entities through economies of scale, thus freeing up valuable IT resources and allowing them to focus on their core missions.
Find out more about the solutions AWS offers Oracles users here.