Do I upgrade to Oracle R12.2 or Fusion Application release 7? Summarized Pros and Cons with key points to guide your decision making

on Tuesday, 01 October 2013. Posted in Enterprise Software , fusion, Blog

Do I upgrade to Oracle R12.2 or Fusion Application release 7? Summarized Pros and Cons with key points to guide your decision making

EBS customers often ask this question but do not get answers to their satisfaction, the answer seems to be consistently ‘it depends’ and most companies begin an assessment effort to understand the business and technological needs of the organization and analyze how those needs can be met by each solution.

 

Let’s begin and get to the points,

Business/Functional Processes and functionality – Oracle Fusion applications is ready for prime time, when it comes to functionality no major difference exists between Fusion Applications and EBS 12.2. A plus on Fusion you get embedded analytics and analytical power that EBS does not have - The GL is underpinned by Essbase and for accountants you can replace the screens with excels spreadsheets .The one delta - downside for government customers within the financial suite of Fusion, encumbrance accounting not available in release 7. What is encumbrance accounting? Encumbrance accounting is mostly used in public sector municipal, government, and schools. It is a reservation of the fund prior to accrual of the expenses. An encumbrance is a transaction that occurs when someone needs to put money away (to hold it) for a specific purpose. In government accounting, an encumbrance is created when a Purchase Order is issued to buy goods or services. The money has not yet been spent, but is selected for that purchase and no one else can use it.

In our everyday life, it`s like you put money into an envelope to hold it to pay a bill, you have encumbered that money. Similar in putting an envelope in your office drawer marked “Phone bill”, the money you put in the envelope for the next bill is your encumbrance. How much should be encumbered? How much do you think your bill is going to be? That’s encumbrance.


User Experience:
Fusion applications makes R12 look bad when you compare the user experience; I have seen customers express a WOW effect when demoing Fusion. Oracle has really taken their time to get Fusion applications right, they have concentrated heavily on the user interface and user experience and they got it right. In my opinion, this is the biggest advantage of Fusion, end users love the look and feel and the functionality empowerment towards the end user in my opinion is a notch above release 12.

 oraclefusion201310

Development: If you are looking at Fusion Applications you need to have a hard look at your existing EBS RICE(Reports-Interface-Conversions-Extension) and determine if they are really needed and whether there is a strong enough business case to carry them forward. Do not ask yourself should I replicate my 50 extensions in Fusion apps; use it as an opportunity to make processes fit as per application. The customizations towards external 3rd party systems using Oracle Fusion Middleware works well in release 7.

Cost/Internal Staff/Long term support - Fusion Applications is built on cutting edge technology and consequently, the hardware required to support it needs to be that much bigger. Internal staff will require re-training and if you look at some facts on the Oracle Fusion customers already in production, they opted for a cloud deployment –current stats 8/10 deployments in production with Fusion apps have been deployed in the cloud. I think clients are taking this approach mostly because expertise does not exist internally and to build the support knowledge this will create challenges to your business case and your project timeline.

Applications Unlimited Program - Customers that have significant investments in EBS, have no other choice than to utilize the co-existence deployment model. Oracle made long-term commitments to older products like EBS or PeopleSoft through its Applications Unlimited Program; I think this has caused a less attractive proposition to go with Fusion applications, I suspect Oracle will begin in 2014 some client incentives to get their clients onto Fusion apps. Customers should not feel it's a one-size-fits-all scenario, from my independent Oracle client discussions some clients have begun their co-existence strategy in implementing HCM, others CRM, others small steps with Fusion Accounting Hub linking to their current ERP financial transactions, others with Fusion GL,AP,etc.

Stability - One of the most common comments I receive, Fusion is not mature, in my opinion that is an incorrect statement, Fusion is a lot more mature than people are realizing out there, especially around HCM and Financials including Fusion accounting Hub, with Fusion you can envision a global instance for your global organization, harder to do than with R12 .

Licensing – As per my knowledge the cost of licensing between Fusion and R12 are similar, but the internal infrastructure cost grows more for Fusion. I think this is the main reason clients are selecting a SaaS deployment approach. The cost savings will come from customers moving to SaaS with Fusion.

Upgrading Starting point – If you plan to upgrade to EBS 12.2, a direct path is included with the releases 11.5.10.2, 12.0 and 12.1

Link to the complete documentation EBS 12.2 Product Information Center (Note 1581299.1)

If you plan to move to Fusion Applications, begin by reading (DOC.id 250.2) here is the link Life Cycle Manager 

Then reference back to Fusion applications- Product Information Center (Doc ID 100.2 ) Link

My view on the current Oracle client mindset is that they are mostly following an approach that is better to continue with the older more mature products with current technologies till the organization is convinced about the benefits from the upgraded system before deciding in favor of a move to Fusion apps, the time will come soon I think, were Oracle will start pushing incentives towards Fusion!

Feel free to share your thoughts on the topic!

 

Comments (33)

  • Steven Hernandez

    Steven Hernandez

    01 October 2013 at 16:29 |
    We are currently doing the analysis, would you know how many clients are live with Fusion applications , and if any are in the beverage industry. Great information, i appreciate you sharing this info, we use EBS and JDE.
    • Alex Antonatos

      Alex Antonatos

      01 October 2013 at 18:36 |
      Hi Steven, the information that I know about, around 200-210 clients are currently live with Fusion applications and currently around 400 fusion apps projects are starting or underway.(fusion licenses purchased)
      Contact your regional sales person to get exact numbers and he will be able to tell you what products are being deployed in your industry, or call me and i can give you a contact in Palo Alto, to help you out and get you the precise information you require.
  • Michael Green

    Michael Green

    01 October 2013 at 16:36 |
    We are in the middle of the analysis and all your points are right on, we will be going with 12.2, the online patching rocks!
  • Tom Wu

    Tom Wu

    01 October 2013 at 17:53 |
    Enjoy the article, Thank you for the heads up, it shows you like what you do, we are also looking to upgrade will keep you posted, been reading your blog for the last 2 years enjoy it, keep them coming.
  • Jonathan Muller

    Jonathan Muller

    01 October 2013 at 18:48 |
    It's hard to find experienced people in this particular subject, however, you know what you're talking about! Don’t we wish at my company you wrote this article in August would of saved us some time and money.
    Thanks
    • Alex Antonatos

      Alex Antonatos

      03 October 2013 at 19:05 |
      Hi Jonathan,
      Thank you for your kind words, good luck with your implementation.
  • Khalid Ashgar

    Khalid Ashgar

    01 October 2013 at 20:34 |
    We are in the middle of an on-premise Fusion implementation,and the sheer size of this fusion environment that includes
    WebCenter Portal for Oracle Applications, BI Foundation Suite, Oracle's identity and access management software, GoldenGate, Fusion Transactional Business Intelligence and WebLogic Server is hell to support internally, but finance and hrms users love it. We are way behind schedule will keep you updated. Solid points in the article.
  • Gopal Govinder

    Gopal Govinder

    02 October 2013 at 03:20 |
    Good analysis! We just started a month ago our Fusion application project. One point that I concur is that Fusion requires a much larger infrastructure than the traditional EBS or PSFT install. I would add that the data model for Fusion is much more complex and requires a more in-depth analysis than EBS.
  • Jan Groenen

    Jan Groenen

    02 October 2013 at 05:20 |
    Yet another great article!

    We went live with Finance, HCM and PPM on the 12th of August (v11.1.5) and we love the prodyct. Not only the look and feel is so much better but also much more fucntionality is added and will be added in the next releases. We are currently waiting to migrate to 7 or 8.
    I slightly agree with this statement,
    When it comes to functionality no major difference exists between Fusion Applications and EBS 12.2
    Does 12.2 have all the PPM and HCM fucntionality which Fusion have? Cash Management has much more options in Fusion then in R12.

    I think if a company considers to go from 11 to 12.2 they should reconsider to go to Fusion Applications. The pain in migrating towards a system which is alreasy 6-7 years old is not worth it in the long run. better to migrate to Fusion. By the time you go live you will probably be on version 8-9 and the product will be completely stabile. You do not want to miss out on the new features and fucntionalities!

    Jan Groenen
    jgroenen@profource.com
    Profource
    We pratice what we Preach! We do oracle and only Oracle! First to implement Fusion Applications on Premise in Europe!
    • Alex Antonatos

      Alex Antonatos

      02 October 2013 at 08:00 |
      Hi Jan,
      Great points and congratulations for your Fusion apps. implementation in Europe. Thank you for sharing!
      Next year if your attending Openword in SF, let`s meetup for a coffee.
    • Charles Thompson

      Charles Thompson

      03 October 2013 at 16:45 |
      Jan,
      Does your company have an english version of the profource website.
      Thanks
  • Mario Taylor

    Mario Taylor

    02 October 2013 at 07:52 |
    Linkedin is amazing, got to this article by one of my connections liking the article, first time to your site. We started an analysis for upgrade 11 to 12.2 or Fusion apps and the information provide d and comments are fantastic. .Bookmarked the site! I enjoy the two way communication of the site, collective intelligence will always rule!
  • Suzanne Myers

    Suzanne Myers

    02 October 2013 at 15:08 |
    We just started a project to retire our current 3 CRM systems and add a global consolidated Fusion CRM, our end users love the look and feel of the application and the mobile experience is great. We are going on-premise lets wait and see will keep you updated on our experience thank you for the good analysis and good comments.
    • Floyd Teter

      Floyd Teter

      03 October 2013 at 10:56 |
      Suzanne, if you have not checked out Oracle FUSE for your Fusion CRM apps, you should do so. Comes free with RUP 7, and the mobile (tablet) experience is even better!
    • Alex Antonatos

      Alex Antonatos

      03 October 2013 at 19:03 |
      Hi Suzanne,
      Keep us posted and good luck on your Fusion project.
  • Floyd Teter

    Floyd Teter

    03 October 2013 at 10:52 |
    1. Existing Oracle Apps Unlimited customers (EBS, PSFT, etc.) can upgrade to Fusion Applications. It's a migration to a new product line, much different than an upgrade. In addition, Fusion Applications is not designed to be a full-functionality rip-and-replace replacement for the Apps Unlimited products. If existing Oracle Apps customers want to make a move to Fusion, they should probably consider a co-existence strategy. Smaller projects, higher returns, and a focus on the things a customer really wants/needs. So no upgrade from Apps Unlimited products to Fusion Apps.
    2. For EBS customers on 11i, the big question is whether to upgrade to 12.1.3 or 12.2.2. For EBS customers already on 12.1.3, should they migrate to 12.2.2? For existing customers on either 11i or 12.1.3, the analysis should be pretty similar. Does your company tolerate well the risk of being on leading edge (aka "bleeding edge") technology? Is high availability important to your business model? Does your organization need the additional language support provided in 12.2.2.? Is the 18-month difference in the end of Premier Desupport dates between the two products important to your enterprise? If you can answer "yes" to all four questions, consider EBS 12.2.2. If not, your target should probably be EBS 12.1.3.

    Hope this incredibly long comment helps!
    • Charles Thompson

      Charles Thompson

      03 October 2013 at 13:49 |
      Alex and Floyd great points we are going to replace our BAAN ERP with Fusion as a rip and replace. We had hired a global consulting firm and paid lots of money$$$ for the recommendation and FYI this article has made its rounds in our company just too bad all the infos they provided have been well summarized in your free article and user comments.
      Floyd for your info, we have been told by multiple consulting firms 12.2 will be the standard and you should upgrade to 12.2 and not touch 12.1.3.
      • Alex Antonatos

        Alex Antonatos

        03 October 2013 at 19:07 |
        Hi Charles,
        Keep us posted and good luck.
    • Alex Antonatos

      Alex Antonatos

      03 October 2013 at 19:03 |
      Hi Floyd,
      Thank you for your helpful comments.
  • Fatma Boudaya

    Fatma Boudaya

    03 October 2013 at 11:17 |
    Great article! we just finished an analysis with Oracle Consulting Services and most points from your article and comments from others were exactly what OCS told us, we decided to upgrade to 12.2. I am a regular reader of the blog!.Will keep you updated.
    • Alex Antonatos

      Alex Antonatos

      03 October 2013 at 19:07 |
      Hi Fatma
      Thanks and keep us posted.
  • Gordon Smith

    Gordon Smith

    03 October 2013 at 13:33 |
    We are going with Fusion on-premise, the decision was based on Oracle's roadmap and the business user experience is not comparable to R12, and we will be using Fusion middleware and PIP's to integrate with our current architecture and 3rd party systems. Solid blog keep it up, I like how you engage others to add to the conversation and share their point of view.
  • Michael Li

    Michael Li

    03 October 2013 at 16:24 |
    Alex thank you for sharing your Oracle expertise and enjoy the different comments . We are currently ripping and replacing EBS/PSFT in a co-existence deployment method like you mentioned in the article , our end goal is to be Fusion apps only, our project timeline is 2 years on release 6. The infrastructure required for Fusion is enormous , our selection was decided mostly because of the user experience at our company they love the look and feel , R12 felt archaic for our users and new functionalities and ease of use were the decision makers also great integration exists like Microsoft office and I-Pad compatible out of the box. Our current dilemma, we are pulling our hair with the EBS extensions and negotiating with the business and IT not too replicate as much as possible.
    • Alex Antonatos

      Alex Antonatos

      03 October 2013 at 19:02 |
      Hi Michael,
      Good to hear from you, good luck and keep me posted.
  • Shawn Myers

    Shawn Myers

    04 October 2013 at 09:53 |
    First let me say my pov , you have one of the best oracle blogs on the web, I enjoy your great content, with cutting edge info and how you collaborate and incorporate others comments /opinions on the blog.We are starting a fusion analysis and we are going with on premise using a co-deployment strategy, Oracle told us yesterday they are up to 250 installs in production with Fusion.
    • Alex Antonatos

      Alex Antonatos

      06 October 2013 at 12:41 |
      Thank you Shawn for sharing the figures you got from Oracle.
  • Hugo Perez

    Hugo Perez

    06 October 2013 at 10:19 |
    Hi Alex, great blog - you should write in spanish also, we have an ERP system called Adempiere, mostly implemented in my country Spain, management requested a quick feasibility between 12.2 and Fusion Applications and we called Oracle Consulting services, to help us and the bottom line the recommendation was 12.2 reasons were as mentioned above by the comments and your blog cost of infrastructure (50% bigger) and in our industry most competitors are still on EBS or SAP.
    • Alex Antonatos

      Alex Antonatos

      06 October 2013 at 12:52 |
      Hi Hugo,
      Unfortunately i don't write Spanish, I speak a bit.
      Thank you for sharing your experience with us and i learned something new I did not know that the Adempiere ERP system existed. Googled it and its interesting it's an open source ERP.
      Keep us posted on your 12.2 implementation by email, since i usually close the comments field 7 days after publishing the article.
  • John Stanton

    John Stanton

    08 October 2013 at 17:53 |
    We started negotiating with Oracle on fusion apps since our users do not like the user experience they currently have with R12 , lets see who will win the battle between business wants vs IT keeping the lights on, we were early adopters of R12 in 2007 and our CIO is know willing to take on Fusion apps on-premise. Business case in progress...
  • Jennifer Robinson

    Jennifer Robinson

    09 October 2013 at 18:21 |
    Alex great blog and I really enjoyed this article, We just had a horrible experience let me share, we consulted two large global consulting firms , and we got opposite answers we spend a large amount of money to get expert advice and both firms worked independently with the same information and we receive very nice PowerPoints were one firm told us to rip and replace with R12.2 and the other with Fusion apps. The advice i would give move quickly on this decision since this became a money pit for us and easy money for consulting firms. Most information in the PowerPoint were mentioned by the comments and the blog.
  • Paul Gomez

    Paul Gomez

    10 October 2013 at 00:08 |
    We are live with Fusion applications , and we decomissionned our legacy erp, overall project went well, great article, yes I can concur that fusion requires a huge infrastructure to operate but the benefits outweigh the complexity.
  • Chris Bowen

    Chris Bowen

    10 October 2013 at 19:13 |
    We went live with Fusion release 3, 11.1.3 stable works well, the technology stack is complex when issues arose Oracle support was able to resolve them quickly, also end users enjoy the experience.

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