Strategic impact of Oracle on Azure Virtual Machines landing zone accelerator

Oracle is a mission-critical workload for many organizations. Whether as a database back-end for a LoB application or as a combined suite for enterprise resource planning, HR, SCM or other services, the dependencies on Oracle software can be seen throughout the portfolio. The cloud adoption plan for Oracle workload can directly and indirectly affect cloud adoption for all related & other workloads. Understanding the strategy for an Oracle cloud migration and future-state innovation targets can be crucial to the success of overall cloud adoption plans.

This article uses the Plan for Oracle on Azure Virtual Machines landing zone accelerator and other resources from the Cloud Adoption Framework to describe the strategic impact of Oracle workload on Azure landing zone accelerator.

Why move an Oracle workload to Azure Virtual Machines for landing zone accelerator?

Oracle is an influential platform, and organizations have several motivations to migrate Oracle to the cloud. When an organization considers a cloud strategy for Oracle, the following motivations tend to shape cloud adoption plans:

  • Migration motivations: If other assets depend on Oracle to migrate successfully, then customers tend to focus on reducing costs, complexities, or operational overhead.

  • Cost optimization motivations: At scale, cloud optimizes cost with scale when required – pay as you go & right sizing of Oracle on cloud can bring licensing and infrastructure cost down.

  • Innovation motivations: The cloud unlocks new opportunities like AI & data modernization for the Oracle workload to be transformed and modernized, although this opportunity may not be in scope for the initial migration.

  • Infrastructure scale flexibility requirements: The cloud offers the ability to seamlessly scale up and down with infrastructure as part of business transformation with any service, including Oracle workloads.

To successfully migrate an Oracle workload to the cloud, you need a cloud strategy team (including business and IT leaders) to review and prioritize the motivations listed in Cloud motivations. This input helps the cloud adoption team to make informed decisions throughout the implementation process.

Motivations to migrate an Oracle implementation to the cloud are often based on an organization's strategic objectives. The following sections are also relevant to your organization if your team is reviewing this migration scenario:

  1. Cycles to refresh Oracle on-premises infrastructure require significant capital expenditures. If your Oracle infrastructure is due for a refresh, the benefits of cloud adoption can unlock timely strategies to reduce costs.

  2. Oracle licenses are a one-time purchase negotiated for a specific number of years. If you want to migrate your Oracle workloads to Azure, review the following official document to understand the license implications on Azure: Licensing Oracle Software in the Cloud Computing Environment.

  3. If your Oracle maintenance contracts are coming up for renewal, which typically happens on a yearly basis, your contract renewal too can be a trigger to consider moving to cloud. Also, an upcoming refresh to a newer Oracle software version triggered by Oracle upgrade cycles, application requirements, or a business driver should also be reason to consider cloud options.

Measure progress during an Oracle migration

Once you understand the top motivations for this scenario, the cloud strategy team can define measurable outcomes to further guide migration activities.

Given the potential impact of an Oracle migration, you need to define several objectives and measurable key results. Commonly known as OKRs, objectives and key results can help you to break down the migration process into manageable efforts. Read objectives and key results to understand OKRs in more detail.

Build a business justification for cloud migration

Building a business justification for cloud migration can dispel several common myths for your team's financial plan. However, your finance team might need to develop a detailed financial model to account for the moving pieces associated with Oracle cloud adoption.

Understand that your initial business justification is a directional estimate that can help to drive strategic alignment. Your organization can create transparency between the cloud strategy team and other stakeholders by affirming that this justification can change significantly throughout planning activities. Look for consensus that there's enough value to gather inventory and develop a plan. Once your digital estate is cataloged and assessed, you can refine your justification and present clearer plans for financial returns.