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Customers are the gems in Oracle’s second-quarter earnings beat

Michael Hickins Profile picture for user Michael Hickins December 23, 2018
Customer momentum towards cloud ERP, HCM and SCM is the hidden story behind recent growth at the vendor, writes Oracle's Michael Hickins

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The untold story behind Oracle’s second-quarter results is the growing customer momentum towards cloud apps, and in particular, Oracle ERP Cloud. The need to modernize and digitally transform is driving organizations to move core enterprise applications to the cloud.

For example, Wells Enterprises, a 100+-year family-owned and managed ice cream business, picked Oracle HCM Cloud to modernize its human resources and payroll technology.

According to Jasen Heaton, director of applications at Wells Enterprises, Oracle HCM Cloud was a logical place to begin its journey to the cloud:

We knew that it was time to start moving to the cloud and decided to do it in a bite-sized fashion. The HR system that we had was very old, very labor intensive with lots of manual processes. HR was the logical place to start. We chose to move forward with Oracle HCM Cloud.

Empowering our hourly workers with mobile access to relevant HR, benefits, and payroll functions was one of the huge drivers for Wells Enterprises to deploy Oracle HCM Cloud. We want these folks productive doing logistics, assembly, and work on the production floor. Oracle Cloud delivered on that premise.

Cloud drives change at Western Digital

Computer storage manufacturer Western Digital, after acquiring SanDisk and HGST, faced the challenge of rationalizing three Fortune 500-size on-premises ERP systems. Western Digital decided it needed a modern suite of best-in-class ERP applications that would enable it to enhance the customer experience and achieve a competitive advantage while improving employee productivity. Steve Phillpott, CIO at Western Digital, explains:

The process of rationalizing three large legacy systems and associated applications gave us a unique opportunity to drive change, as more than two thirds of our organization would have to undergo change no matter what application we selected. We needed a simple, yet scalable cloud platform that could power our rapidly growing business.

With Oracle Cloud we have been able to consolidate applications, automate key financial workflows and radically improve productivity. Oracle has been the catalyst for change and is pivotal in our digital transformation journey.

For many Oracle customers, ERP is at the center of their cloud journey, as Oracle founder and CTO Larry Ellison noted during the Q1 earnings call held in September 2018:

Our Cloud ERP product is the strategic key to our success in the SaaS applications layer of the cloud

SaaS agility at Office Depot

Business supplies chain Office Depot is another long-time Oracle customer which decided to move its applications to the Oracle cloud in order to achieve greater business agility. Speaking during a panel discussion at Oracle OpenWorld in October, Damon Venger, Sr. Director of IT Applications at Office Depot Inc, observed that going SaaS helped accelerate their progress towards that goal:

Office Depot started down the Oracle path more than ten years ago with traditional Oracle ERP on premises. As our business evolved to become a leading omnichannel provider of business services and supplies, products and technology solutions, we had to start looking at our complexity and how we could change and shift. That conversation has led us to the cloud.

We're live with several applications in the cloud – HCM, Transportation Management, EPM and ERP – and are continuing to roll out more Oracle Cloud apps across the enterprise. SaaS has changed the flexibility and the speed with which you can step into new technology and really enable the business.

The common theme among these stories is the need to drive change, achieve greater efficiency and become more agile to meet the needs of today’s business environment. With Oracle’s help, more and more enterprises are finding the answer in the cloud, particularly as Oracle continues embedding new emerging technologies, such as artificial intelligence and blockchain, into its ERP, HCM and SCM offerings.

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