Oracle shows considerable SaaS growth in Australia
The general manager for ERP/EPM SaaS at Oracle said their business has experienced 100% year on year growth within Australia.
Just looking back a few years, Oracle’s SaaS customers were fairly small. Many businesses that were using Oracle SaaS were unable to afford the capital costs of having an on-site system. Today, regular users of Oracle products are transferring from on-site premises to SaaS.
Whilst the business implement an ‘applications unlimited’ policy, referring to on-premises applications will trigger further development for the next few years, customers can enhance their systems by transferring to the Oracle Fusions SaaS platform.
John Leonard, General Manager of ERP/EPM SaaS explains that nearly every project is completed within a year, with many being delivering in under 8 months. Leonard also highlights the sheer expense of on-site upgrades, suggesting they can incur costs of nearly $20 million for larger businesses. Transferring to SaaS offers a low-risk alternative to potentially costly and risky upgrades. Due to regular features releases, SaaS enables simpler adoption of new technologies, including blockchain.
Leonard explains that back in 2012, most Oracle CRM customers were using on-site software but by 2016 many had transferred to SaaS. A similar transition is now occurring within HR and Finance software.
Australia is following in this path with an extensive list of local customers ranging from investment business QIC to fast food chain Hungry Jack’s implementing SaaS. To further support customers moving to Saas, Oracle provides an option enabling companies to utilise the consultancy operation of Oracle and customers pay on delivery.
ERP is a top priority for Oracle in regards to SaaS during the next year. Leonard explains that many SaaS competitors provide point solutions, but Oracle’s SaaS applications use the same codebase and data model. Leonard believes that companies are looking for a provider to includes the whole of their business, rather than one specific area.
A key advantage of SaaS is that it allows users to monitor their software without viewing customers data. This means users can analyse potential issues before customers notice and identify any trends and react appropriately. Leonard believes that SaaS is the fastest method to provide innovation to customers, offering a significant advantage over other competitors.