How to Safely Upgrade Your Legacy ERP System to the Cloud

JULY 15, 2022 03:00 AM

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Modernizing a legacy ERP system can be vital to stay competitive in any industry; it is especially crucial for supporting the large-scale demands of businesses operating from various geographical locations. While cloud migration has become necessary for organizations of all sizes, many are hesitant to implement a new ERP system due to the significant upfront capital expenditure, lengthy implementation period, and security risks. However, with the proper knowledge and service provider, businesses can develop a safe and affordable migration strategy to drive their business forward.

Signs to Replace Your Legacy ERP:

Integrating your ERP System with new technologies to pull in relevant data is challenging.
The ERP system becomes outdated and slow as it needs to be updated manually.
There is a lack of adaptation for new functionalities, such as frequent updates, to keep up with rapidly changing technologies.
The system cannot support business acquisitions (not able to combine data from two companies), resulting in purchasing a second instance to manage data.

If your system shows any or all of the signs above, it is time to consider an upgrade.

Five Approaches to Legacy ERP System Modernization

Rehost: Also known as Lift and Shift, rehosting is about lifting the present hosting environment and shifting it entirely to infrastructure in the public cloud. This strategy is best for you if you are starting your migration journey.
Refactor: In this strategy, alterations are made to the code and architecture of your system before it is moved to the cloud. The applications receive the benefits provided through the cloud. Advanced knowledge and planning are needed for this strategy to be accomplished.
Re-architect: The migration is done to a pre-built application, which is of a third party and is offered by the vendor. Only data is migrated from the current application, while other things are new in the system.
Rebuild: In this, optimization is done to the applications while you are migrating to the cloud.
Replace: In this, the services and assets that can be turned off are identified so that the organization can focus on new services that offer greater business value.

Tips for a Successful Migration to the Cloud

The cloud has many benefits, and one of the most important is that it will allow you to take advantage of the latest and greatest technologies. However, not all legacy systems are compatible with the cloud, so they must be migrated to the cloud. This process can take months if not years. One of the most critical steps when migrating legacy systems to the cloud is to plan it out thoroughly and ensure that you have an established strategy before you start moving anything over. Here are a few tips on how to safely migrate your legacy system to the cloud:

Understand your current system
Identify what your current system is and what it does by conducting a thorough assessment of the applications, data, and infrastructure. This will help you determine if it can be migrated or not. Suppose it cannot consider cloud computing as a possible solution. If your legacy ERP system is old, you must upgrade it and build the appropriate data warehouse before considering cloud computing.
Get to know your options.
Once you have a clear understanding of the capabilities of your current ERP system, you can decide on one of the three types of migration options - an all-in approach, an incremental approach, or a hybrid approach, migrating to and from the cloud as appropriate.
Understand what is required.
Before migrating data to the cloud, one of the foremost steps to consider is to check which Cloud service providers offer excellent DRT protocols and backup plans in case any of your business locations fail through a disaster. Essential factors such as critical application data, legacy data, and application interoperability will help create a plan for the tools required during migration.
Compare service providers.
Research and compare the relevant cloud migration services and the costs different cloud providers offer. Examine the expected benefits concerning operational benefits, cost savings, and architectural improvements to know the actual long-term cost of your cloud migration.
Create a timeline for migration and define deadlines.
A common question for companies is, "How long does an ERP implementation take after selecting it as a legacy system replacement?" This answer may vary for many companies, but the usual timeline for implementing a new cloud ERP system may take anywhere between 6 to 12 months and depends on the amount of effort put into your cloud migration strategy.
Plan for contingencies.
If your data becomes unavailable to users while migrating, it will risk impacting the business operations. Every migrated workload element should function in the new environment before migrating another aspect. Try to synchronize changes made to the source data while the migration is in progress.
Perform Regular Checks.
After migrating the data, ensuring your sensitive details are optimized, secure, and retrievable is essential. Monitor real-time changes to critical infrastructure, regularly predict workload fluctuations, and assess the data security to ensure the data works safely in the new environment.

Why Oracle ERP Cloud?

The best ERP system for your company depends on your enterprise needs. Oracle Cloud is one of the environmentally conscious data center providers. With Oracle ERP on Cloud, organizations can reduce the cost and complexity of this process while maintaining the same level of data security.

FAQs

What are some indications that it is time to replace a legacy ERP system?
Several signs suggest it is time to consider replacing a legacy ERP system. These include difficulty integrating the ERP system with new technologies for data retrieval, the system becoming outdated and slow, lack of adaptability for new functionalities and updates, and the inability to support business acquisitions, often resulting in separate instances to manage data.
What are the five approaches to legacy ERP system modernization, and what does each entail?
The five approaches are:

Rehost (Lift and Shift): Moving the existing hosting environment to a public cloud infrastructure. This approach is suitable for those beginning their migration journey.
Refactor: Altering the code and architecture of the system before moving it to the cloud to leverage cloud benefits. It requires advanced knowledge and planning.
Rearchitect: Migrating data to a pre-built third-party application offered by a vendor. Only data is migrated, while the rest of the system is new.
Rebuild: Optimizing applications during the migration to the cloud.
Replace: Identifying and turning off services and assets to focus on new services that offer greater business value.

What are some crucial steps for a successful migration to the cloud?
Essential steps include:

Understanding the current system by thoroughly assessing applications, data, and infrastructure.
Knowing the available migration options (all-in, incremental, or hybrid).
Understanding requirements such as DRT protocols and backup plans offered by cloud service providers.
Comparing cloud service providers and their costs.
Creating a migration timeline with defined deadlines.
Planning for contingencies to minimize business disruption.
Performing regular checks to ensure data is optimized, secure, and retrievable.

How long does an ERP implementation take after selecting it as a legacy system replacement?
The timeline for implementing a new cloud ERP system typically ranges from 6 to 12 months. However, the specific duration depends on the effort put into your cloud migration strategy and the complexity of the implementation.
Why is Oracle ERP Cloud recommended?
Oracle ERP Cloud can help organizations reduce the cost and complexity of ERP processes while maintaining high data security. Oracle is also an environmentally conscious data center provider.
What is the role of an Oracle solutions partner in cloud transformation?
A reliable Oracle solutions partner is essential for a successful cloud journey. They provide cloud advisory services to ensure a well-planned and managed implementation, mitigating the risk of disruption during the transformation.
What services does SMACT Works provide?
SMACT Works offers end-to-end consulting and managed and implementation services for Oracle Cloud Applications, IaaS & PaaS, and On-Premise PeopleSoft & EBS applications. They are an Oracle Gold Partner specializing in various Oracle Cloud solutions, including ERP, EPM, HCM, SCM, Student, and CX Clouds.

Conclusion

Cloud transformation involves intricate planning, and one size does not fit all. For a successful cloud journey, having the right Oracle solutions partner who offers cloud advisory services is essential to avoid disruption with a well-planned and managed implementation effort.

If your legacy ERP system shows signs of needing an upgrade, don't wait any longer. Take the crucial step towards modernization and unlock your business potential. Our expert team is here to help you navigate the complexities of cloud migration and create a tailored strategy that fits your needs. Contact us today to discuss how we can assist you in transforming your ERP system and driving your business forward!

About SMACT Works

SMACT Works is a technology-focused systems integrator and IT/ERP consulting firm. We deliver end-to-end consulting, managed, and implementation services for Oracle Cloud Applications, IaaS & PaaS, On-Premise PeopleSoft & EBS Applications. Headquartered in Dublin, OH, we have a global presence with North America and Asia offices. We are an Oracle Gold Partner Cloud Standard, ISO 9001, and 27001 certified delivery organization serving customers with Excellence and Integrity.