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Tuesday 13 October 2020

Ocado's Oracle cloud migration

Oracle logoMoving existing customers to its cloud products is an ongoing task for Oracle and while there are no public timescales, on-premise drag and overall revenue growth in the low single digit area point to a pressing need. When long term customers like online grocery provider Ocado make the decision to migrate from on-premise to the cloud with Oracle, it is a vote of confidence and an addition to cloud sales that are edging up (see here).

Ocado has benefitted from the surge in demand for grocery deliveries during 2020 but it is no newcomer, having been in the business for 20 years. It has been using Oracle ERP for 20 years too, currently running R12 ERP for financial functions. (SAP and Oracle customer Marks and Spencer recently bought 50% of Ocado). With expanding operations, particularly internationally, and the need for greater accessibility and scalability than the on-premise implementation enabled, it made the decision to move to the cloud with Oracle Fusion Cloud. Oracle was not the automatic choice but it did come out tops in the selection process.

Ocado van imageOcado is currently four months into a 12 month migration. The project is centred on the financial function but Ocado is taking the opportunity to look at its processes, including how the finance operation can be restructured to break down traditional, siloed practices and make use of the capabilities the cloud enables. 

The desire to do more than ‘lift and shift’ will be good for Ocado (it has to keep M&S Percy Pigs trotting!) and for Oracle too. As Ocado adds more automation, extends its platform to international partners and looks at capitalising on cloud capabilities, these activities could lead to further investment in Oracle Cloud Infrastructure and the autonomous portfolio. That’s important for Oracle because it is putting infrastructure to the fore of its business, with applications positioned as a significant driver for cloud infrastructure. 

Posted by: Angela Eager

Tags: contract   cloud   software  

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