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Oracle ERP Cloud
Let’s Talk Numbers!
Time to discuss the real cost of moving to the Cloud

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Presenters

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Agenda
Summary
Intro
IT Convergence Overview
Functional ROI
Technical ROI
Questions & Comments

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ITConvergenceOverview

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IT Convergence Infographic

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Technology Implementation
Technology Advisory
Cloud Services

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Introduction

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SoWhatIstheROIofmovingtothe
OracleCloud?

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Methodology

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Methodology
 All transactions were tested by our Vice
President of Solution Sales.
 This ROI is primarily focused on core
Financials. Additional activities will be done
related to ROI for Projects, Purchasing and
HCM.
 Where practical, he entered five (5)
transactions to determine an average entry
time for both approaches.
 The costs for an on-premise environment were
leveraged from an actual manufacturing
customer looking at procuring hardware for an
R12 instance.

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FunctionalROI

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Supplier Registration
Automated Approvals
Invoice Entry
Watchlists

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Reporting
Trees
Social
Drilldown

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Invoice Entry

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Invoice Entry
Manual Entry
Automated
Invoice
Processing
Time Study (Seconds) 153 43
Number of
Invoices/Day 140 502
Working Days/Month
to Process Invoices 71.3 19.9
Costs/Month $22,814.81 $6,370.37
Assumptions
Working Time/Day 6 hours
Invoices Processed/Month 10,000
Internal Cost for Resource $40

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Supplier Registration

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Supplier Registration
Manual Entry
Supplier
Registration
Time Study (Seconds) 245 55
Time Processing New
Suppliers/Month
(Days)
4.5 1.0
Annual Costs $17,422 $3,911
Assumptions
Working Time/Day 6 hours
Number of Registrations/Month 400
Internal Cost for Resource $40

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Automated Approvals

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Automated Approvals
Manual
Approval
Automated
Approval
Time Study (Seconds) 123 6
Time Processing
Invoice Approvals/
Month (Days)
5.7 .3
Annual Costs $21,866 $1,066
Assumptions
Working Time/Day 6 hours
Number of Invoices/Month 1000
Internal Cost for Resource $40

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Watchlists

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Watchlists
Manual
Search Watchlist
Time Study (Seconds) 555 20
Time Spent
Searching/Month
(Minutes) 388.5 14
Annual Costs $31,080 $1,120
Assumptions
Working Time/Day 6 hours
Number of Searches/Day 2
Number of Employees 10
Internal Cost for Resource $80

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Social

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Social
Manual
Search Watchlist
Time Study (Seconds) 90 8
Time Spent
Searching/Annually 525 46
Annual Costs $700 $62.22
Assumptions
Working Time/Day 6 hours
Number of Searches/Month 25
Number of Audit Searches 50
Internal Cost for Resource $80

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Reporting

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Reporting
Running New
Financial
Report Change POV
Time Study (Seconds) 90 19
Working Days Running
Reports/Mont 4.2 .9
Annual Costs $4,000 $844
Assumptions
Working Time/Day 6 hours
Number of Reports Run/Month 1000
Internal Cost for Resource $80

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Trees

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Trees
Manual
Search Watchlist
Time Study (Seconds) 1215 281
Time Spent to Update
Reports 20.25 .08
Costs $1,620 $6.24
Assumptions
Working Time/Day 6 hours
Number of Reports to Update 60
Internal Cost for Resource $80

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Drilldown

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Drilldown
Manual
Search Watchlist
Time Study (Seconds) 70 23
Monthly Time for
Drilldowns (Days) 3.2 1.1
Annual Costs $24,889 $8,178
Assumptions
Working Time/Day 6 hours
Number of Monthly Drilldowns 1000
Number of Employees 10
Internal Cost for Resource $80

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Functional ROI Summary
Functionality Estimated Annual ROI
Invoice Entry $197,133
Supplier Entry $13,511
Automated Approvals $20,800
Watchlists $29,960
Social $638
Reporting $3,155
Trees $1,614
Drilldown $16,711
Total $283,522

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TechnicalROI

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Human Resources
Application Licensing
Technical Infrastructure

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Technical Infrastructure Components
 Facility
 Servers
 Storage Array
 Tape Backups
 UPS for Server/Storage
 Disaster Recovery Equipment

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Production & Non-Production
Description Quantity Cost (Ea) Total
Datacenter facilities (renting a cage in a AAA data center) 2 $12,000 $24,000
Dell M820 Intel Xeon Processor E5-4600 Product Family with 4 CPU x 8
Cores x 2 (HT)=64 vCPU, 256 GB RAM Production
3 $41,004 $123,012
Dell M820 Intel Xeon Processor E5-4600 Product Family with 4 CPU x 8
Cores x 2 (HT)=64 vCPU, 256 GB RAM Non-Production
4 $41,004 $164,016
Dell Blade Chassis M1000e-Med Grade 1 $25,000 $25,000
Storage Array 1 $30,000 $30,000
Tape Backup Library/Tapes/Backup Software/Offsite Storage 1 $50,000 $50,000
UPS for Servers/Storage 1 $10,000 $10,000
Total $426,028

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Disaster Recovery
Description Quantity Cost (Ea) Total
Datacenter facilities (renting a cage in a AAA data center) 1 $12,000 $24,000
Dell M820 Intel Xeon Processor E5-4600 Product Family with 4 CPU x 8
Cores x 2 (HT)=64 vCPU, 256 GB RAM Disaster Recovery
3 $41,004 $123,012
Dell Blade Chassis M1000e-Med Grade 1 $25,000 $25,000
Storage Array 1 $30,000 $30,000
Tape Backup Library/Tapes/Backup Software/Offsite Storage 1 $50,000 $50,000
UPS for Servers/Storage 1 $10,000 $10,000
Total $262,012

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Human Resources
Description Headcount Burdened Salary
Technical Manager 1 $196,355
Primary DBA 1 $156,200
Secondary DBA (Junior Level <4 years Experience) 1 $116,645
System Administration (Backup/Storage/OS/Compute) 1 $154,222
Total $623,422
All salaries based on Glassdoor submissions in the US, with a 40% burden for benefits & fringe.

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License Costs-On-Premise
License Discount 40%
Users
License
List
Maintenance
List
License
Discount
Maintenance
Discount Total Year 1
Financials 50 $ 4,595 $ 1,011 $ 137,850 $ 30,327 $ 168,177
Procurement 25 $ 4,595 $ 1,011 $ 68,925 $ 15,164 $ 84,089
Database EE User 60 $ 950 $ 209 $ 34,200 $ 7,524 $ 41,724
Database EE Processor 4 $ 47,500 $ 10,450 $ 114,000 $ 25,080 $ 139,080
Internet App Server EE User 60 $ 700 $ 154 $ 25,200 $ 5,544 $ 30,744
Internet App Server EE Processor 4 $ 35,000 $ 7,700 $ 84,000 $ 18,480 $ 102,480
Internet Developer Suite 10 $ 5,800 $ 1,276 $ 34,800 $ 7,656 $ 42,456
$ 608,750

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License Costs-Cloud
License Discount 40%
Users License Maintenance License Maintenance Total-Y1
Financials 50 $ 600 $ - $ 216,000 $ - $ 216,000
Procurement 25 $ 350 $ - $ 63,000 $ - $ 63,000
$ 279,000

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License Costs Comparison
License Discount 40%
Y1 Y2 Y3 Y4 Y5 Total 5 Year
On-Premise $ 608,749.50 $ 109,775 $ 109,775 $ 109,775 $ 109,775 $ 1,047,848
Cloud $ 279,000.00 $ 279,000 $ 279,000 $ 279,000 $ 279,000 $ 1,395,000

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5-Year Technical Comparison
Year 1 Year 2 Year 3 Year 4 Year 5 Total 5 Year
On-Premise License Costs $ 608,750 $ 109,775 $ 109,775 $ 109,775 $ 109,775 $ 1,047,850
Infrastructure $ 688,040 $ - $ - $ - $ - $ 688,040
Human Resources $ 623,422 $ 623,422 $ 623,422 $ 623,422 $ 623,422 $ 3,117,110
Upgrade $ - $ - $ - $ 200,888 $ - $ 200,888
Total $ 1,920,212 $ 733,197 $ 733,197 $ 934,085 $ 733,197 $ 5,053,888
Cloud Subscription $ 279,000 $ 279,000 $ 279,000 $ 279,000 $ 279,000 $ 1,395,000
Infrastructure $ - $ - $ - $ - $ - $ -
Human Resources $ - $ - $ - $ - $ - $ -
Upgrades $ 50,000 $ 50,000 $ 50,000 $ 50,000 $ 50,000 $ 250,000
$ 329,000 $ 329,000 $ 329,000 $ 329,000 $ 329,000 $ 1,645,000

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Summary

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