When an open-ended search reveals one of the top questions about a product to be “Is it still used?” — it is time to evaluate modern ERP solutions.
The end-of-life discussion surrounding PeopleSoft and JD Edwards has continued for the better part of a decade. And while these legacy systems aren’t dead yet, is the headache of maintaining an out-of-date ERP truly worth it?
In this article, we will take a look at the history of Oracle PeopleSoft and J.D. Edwards, examine the downsides of continuing to use legacy products as their end-of-life approaches, and provide tips on migrating to a new ERP.
J.D. Edwards and PeopleSoft had each been around for over 20 years prior to being acquired by Oracle in 2003 and 2004, respectively. Based on years of growth and success, the companies were considered to be two of the best software providers in the industry. The merging of J.D. Edwards and PeopleSoft, followed by the acquisition by Oracle, was intended to produce momentum for Oracle who promised immediate and improved support for J.D. Edwards and PeopleSoft customers.
J.D. Edwards was a midrange database and operating system with a focus on finance and manufacturing software. The company experienced steady growth as it continually adjusted to then-current demands of the ERP industry. By 2000, J.D. Edwards had developed multiple versions of OneWorld, and just before the Oracle acquisition in 2003, J.D. Edwards merged with PeopleSoft.
As the name suggests, the focus of PeopleSoft was human resources; however, its services did not end there, as it also offered reliable financial management solutions. In its early days, PeopleSoft products were wildly popular — so much so that it seemed as though there was not enough PeopleSoft to satisfy demand.
When J.D. Edwards and PeopleSoft merged, the goal was for each to complement the other’s greatest attributes under the moniker of Oracle Fusion, resulting in products that could serve a wider range of customer segments. Today, Oracle maintains PeopleSoft, JD Edwards, and Oracle E-Business Suite along with modern cloud solutions such as Cloud ERP, Cloud HCM, Cloud EPM, and NetSuite.
In most cases, we will recommend upgrading from Oracle PeopleSoft and JD Edwards. Of course, every company is different, and each of our clients has unique situations that need to be addressed. So, it can happen that in some scenarios, it is advisable for an organization to remain on one of these platforms. Here are some of the criteria we use to evaluate Oracle legacy products for our clients.
PeopleSoft and JD Edwards customers can find themselves paying a premium for support and maintenance that legacy software often requires. Unfortunately, this expense does not add significant value when the software itself is out-of-date. Worse yet, several clients are committed to contracts that scale with their business — as the company grows, their expenses grow, as well. Such customers would do well to compare the sunk cost not just against the price of future investment, but the potential revenue that a modern ERP can help generate.
From a financial perspective, continuing use of legacy software can lead organizations to an impasse when they are obligated to purchase bolt-ons in an attempt to keep pace with functionality that is available out-of-the-box with Oracle Cloud ERP, NetSuite, or other modern products. Put bluntly, paying for something that is no longer valuable is economically shortsighted. Even when costs are minimal, investing in a best-of-breed cloud ERP is commonly the more fiscally responsible decision.
While remaining on legacy software is not as dire as sitting on a ticking time bomb, longer delays only make it more difficult to upgrade. For now, Oracle is continuing to support PeopleSoft and JD Edwards, but it seems that it is just a matter of time before we reach the end-of-life for these products. As it stands, the majority of legacy customers on PeopleSoft and JD Edwards no longer have the option of a simple upgrade — instead, they are looking at an entirely new ERP implementation.
Observe your team to determine if there are indicators that your company needs to move to a new software platform. After all, since an ERP implementation is in the cards, be willing to evaluate multiple vendors and examine all available options. Ask your employees if they are experiencing major problems, and find out if there is functionality that they need but cannot get from the current software. If the answer to either of those questions is yes, that is all the more reason to consider upgrading to a newer system.
If your company has needs that are no longer being met by PeopleSoft or JD Edwards, it is time to look for better options. Look at the future of your company, too. While the legacy software may meet immediate needs, remember that it will not receive the on-going added features found in other products.
Looking at new software does not mean you need to feel compelled to make the change. If making an immediate move to a new ERP sounds too costly or too risky, the best thing that you can do is to continue researching what is available. Staying informed even when making the decision to stand still will benefit your organization when the time comes to transition.
It may surprise you to learn that you have a lot of negotiation power when it comes to upgrading options with Oracle. Again, do your research and look at what else is out there. Trust that you know what you are talking about. Do not be afraid to make providers work hard to do business with your company and do not be afraid to ask more than once.
If now is the time to make a move to a new ERP, here are some important steps to take before your transition:
Once you are certain that your company is ready for a new ERP system, educate yourself on the process. This process will vary depending on the current software applications that are being used. For example, transitioning from PeopleSoft 9.1 to 9.2 is basically the equivalent of implementing a new product — it is not as simple as hitting a single button, or even hitting multiple buttons.
Users of PeopleSoft 9.2 will have a slightly simpler migration, thanks to the PeopleSoft Update Manager which supplies built-in change management. The conundrum here is that a dedicated technical person or team is needed to go through the entire process of building a virtual environment and applying the patches to make sure that the systems are functional.
Despite the challenges that come with transitioning to "same-provider" software, there are also significant benefits. Typically, there is less risk involved with this type of move. These moves require less data migration due to consistent software architecture. But remember, it will never be easy — and that is a guarantee. It will require buy-in, hard work, financial rationality, and sufficient access to necessary resources.
If your company is migrating to an entirely new platform, more options may be available in terms of variety. But again, it is not a simple choice. And it is your responsibility to recognize that the area requiring the most attention is data migration.
There are many good software options in the market for those looking to change. For example, we have advised some current PeopleSoft users to transition to Workday, a ground-up, pure SaaS solution on a modern platform. Other products we might recommend include NetSuite, Infor, Unit4, Sage Intacct, or Acumatica. But it is important to note that every scenario is unique, and it is never advisable to make such an important decision based on an article such as this one without evaluating each of the factors involved in a proper ERP selection.
Though migrating from legacy software can be daunting, not everyone will need to transition right away. We have seen clients succeed with PeopleSoft and JD Edwards — and while there is still an end-of-life in sight for the products, clients in this position can continue to use them for now without major issues. If your company is running the latest versions of the software and receiving support from the provider, such as JD Edwards Enterprise 19.3 and PeopleSoft Enterprise 9.2, you will still be able to secure some enhancements, such as security patches and regulatory updates.
Another option for some clients is simply to change the dynamics of how their ERP is handled. This does not require a complete makeover — alternatively, it might include moving an on-prem solution to the cloud in order to reduce the on-site technical infrastructure.
If you are not currently receiving support from your software provider, it is a viable option to seek assistance from a third-party support company. There are trustworthy companies that can offer cost-effective assistance with legacy software products.
Our recommendation remains the same: do not change if you do not have to and if you are unsure, enlist the help of a third party. Keep in mind that Oracle representatives will help you maintain familiarity with the latest updates and news regarding your legacy software, so be sure to connect with your representative before making any radical changes or migrating to new software. You may find there are more options available than you thought.
No matter what you decide, there is one certainty: ERP Advisors Group is here to help.