04 Nov What to do if you are on an old version of JD Edwards E1?
If your Company uses JD Edwards version 9.1, you need to decide whether:
- Nothing will be done;
- Will there be a move towards an ERP in the cloud or;
- Remains with JD Edwards on-premise or in the cloud, but migrating to Release 23 of the System.
do nothing
Version 9.1 was initially released in 2012, and its support ended two years ago.
Why would companies still be using software released ten years ago and unsupported as the backbone of their company? They believe that the cost and disruption of a migration project outweigh the benefits. In some cases, this has been the thinking, but two trends have made “stopping” a bad decision:
- Cybercrime and ransomware attacks have become an exponentially growing industry. All software contains vulnerabilities that require patches and updates on an ongoing basis. Each update means that the manufacturer will no longer update a lower version. An ERP system like JDE E1 is a large platform of interdependent hardware, operating system, utilities, and application software that require joint upgrades, turning patch installation into a significant upgrade project. From a security standpoint, keeping older software versions because the business can keep running is no longer a viable option.
- Digital technology is the main driver for companies to better adapt to working and living remotely. The new normal will be adapting to reality, quickly changing to meet or even benefit from it.
In this sense, newer versions of ERP will provide tools for mobility, integration, cloud computing, artificial intelligence and automation, allowing companies to find and keep new customers, help employees become more productive and economies grow in a more sustainable world. chaotic and rapidly changing. Staying on older software versions makes it difficult to keep up with companies taking advantage of digital transformation.
Therefore, no longer use the “do nothing” option. This option increases cybersecurity vulnerability and risk of business disruption while decreasing the ability to compete in a digital world.
Migrate to a Cloud SaaS ERP
Switching to SaaS ERP, the second option, is the flip side of doing nothing. By default, SaaS solutions provide the infrastructure eliminating the need for upfront investments in hardware and software, ongoing maintenance, upgrade and security costs.
A monthly subscription replaces the above costs, resulting in a lower Total Cost of Ownership (TCO) due to productivity increases and scale efficiencies and shared costs that cloud vendors provide.
The result is less risk and improved cybersecurity. So IT teams can focus on improving the business instead of keeping the lights on.
Improving IT efficiency has been a popular criterion for moving to the cloud, eliminating the risk of obsolescence. However, there are cons to moving to current SaaS offerings. Offerings for medium and large companies are not fully mature. SaaS providers still have a lot of work to do to bring the full capabilities of an on-premise system to the cloud. Also, the cloud offerings use a model where customers are required to use the “best practices” that the software offers versus the customization option available for the on-premises model. This could create barriers and difficulties for companies that have already invested heavily in ERP customization, to the point of making it “round” to meet their needs.
Moving to a SaaS model of cloud ERP is a powerful trend and a sound strategic decision, but it may take a few more years before it can deliver all the features and flexibility a business needs.
Move to JDEdwards 9.2 Release 23
The third option is to upgrade your system to EnterpriseOne 9.2 Release 23 using an IaaS solution. For the next 5-10 years, owning the JDE software but using it on a cloud infrastructure might be a good strategy.
Strategically, Oracle, like any other software vendor, has already decided that one of the paths of the future is the cloud (as a service) both from the point of view of software and infrastructure. Why then consider upgrading to 9.2? Oracle has committed to continuing premium support for 9.2 through 2033. They have changed their update model with a continuous delivery approach instead of major updates every 5 years. No customer ever wanted to go through an upgrade – they just wanted the result of an upgrade, so this is a big change. Enhancements in mobility, automation, optimization and digital transformation will roll out quarterly over the next 10 years. Artificial intelligence and analytics will be a big part of future improvements. So the 9.2 product roadmap is still progressing, it's comparable to cloud ERP solutions, and getting those improvements has become much less painful and expensive.
All customers have maintenance and support contracts for the system, so they already have version 9.2, which means there are no JDE software costs for an upgrade.
Users already know the system and business processes, reducing implementation time and costs. Upgrading to 9.2 will be cheaper than implementing a new ERP and in some cases much more economical.
Upgrading to 9.2 may give you time to see which cloud technologies win without giving up access to the latest application advancements that would jeopardize business success and growth. By installing 9.2 on an IaaS solution, customers can still benefit from a cloud solution in terms of hardware.
This is a viable option to consider and compare to a cloud ERP solution.
The only bad decision is to do nothing and stick with the older E1 version
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