There’s ongoing debate about transitioning from legacy on-prem solutions to Oracle Cloud HCM. But is it the right move for your business? When you implemented your current on-prem system, it was a purposeful decision. Was it due to the lack of cloud offerings? Did you inherit the system from a predecessor? What influenced your choice?
Reflecting on these initial circumstances can provide valuable insights as you contemplate a change.
Weighing the options of maintaining your current legacy system versus migrating to the cloud can greatly benefit your business. Here, we highlight key differences between on-prem solutions and Oracle Cloud HCM to help you decide on the best HR system for your organization.
Adaptability
Your on-prem system, designed for cross-industry use, likely required extensive customizations to fit your unique business needs. Each upgrade involves a time-consuming, costly process where your IT team decides which customizations to apply to the new update. Oracle Cloud HCM simplifies this. You can easily configure the system to meet evolving workplace needs. With quarterly updates, there’s no need to worry about preserving customizations or relying heavily on IT. You’ll seamlessly update to new features while keeping your configurations and accessing the latest innovations.
Source(s) of Truth
Many organizations use a variety of platforms to meet daily goals, and your on-prem HR solution may cater to isolated needs. Oracle Cloud HCM provides a unified cloud solution that integrates every HR process and person across your enterprise. This central source of truth ensures consistent data, accurate reporting, and confident decision-making. For example, Macy’s streamlined 63 separate HR systems into the singular Oracle Cloud platform, experiencing significant benefits.
Manual Processes vs. Automatic
Customizations often require manual interactions and costly management, as do many unnecessary manual processes in on-prem systems. Most lack self-service capabilities, whereas Oracle Cloud HR empowers candidates and employees to manage tasks independently. When Arizona Federal Credit Union transitioned to the cloud, they automated onboarding processes, saving 60 hours of work each month.
Total Cost of Ownership
The Oracle Cloud HCM Value Realization Report indicates that customers who migrated to Oracle Cloud HCM saw a 29% reduction in upgrade, IT maintenance staff, and infrastructure costs. For instance, Citizens Financial Group, Inc. saved over $1 million, and LINX Cargo Care Group anticipates annual savings of up to $480,000 in licensing and infrastructure hosting costs. While results vary, businesses consistently reduce their total cost of ownership by migrating to Oracle Cloud HCM.
Dependent on the Past or Future-Proof
Legacy on-prem HR systems rely on outdated processes and can’t keep pace with the rapid digital transformation in today’s business world. Recent years have seen unprecedented technological advances. Oracle Cloud HCM positions businesses to leverage emerging technologies, including artificial intelligence, machine learning, and digital assistants, which are becoming standard in non-work environments and expected by employees.
Key Takeaway
Deciding to transition to Oracle Cloud HCM is challenging but necessary. Customers who have already migrated report high satisfaction, attracting top talent, increasing productivity, lowering operational costs, and enhancing HR experiences. Consider Oracle Cloud HCM as the key to smarter, faster decisions for your business.