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Monday, February 6, 2023 | 03:26 pm

American Public Sector Eases Into Moving to the Oracle Cloud

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American Public Sector Eases Into Moving to the Oracle Cloud

State and local governments in the U.S., many of which use Oracle database management systems and applications, are beginning to pursue application modernization and cloud migration amid significant financial and staffing constraints, according to a new research report published today by Information Services Group (ISG) (Nasdaq: III), a leading global technology research and advisory firm.

The 2022 ISG Provider Lens™ Oracle Ecosystem report for the U.S. Public Sector finds that state, local and educational (SLED) organizations in the U.S. are under increasing pressure to migrate their Oracle implementations to the cloud to meet new requirements for efficiency, data sharing, and constituent services. Due to labor shortages that grew worse with the COVID-19 pandemic, they are turning to service providers to plan and carry out these transitions, most of which are still in the early stages.

“The Great Resignation hit the public sector just when IT modernization became mission critical,” said Nathan Frey, partner, and public sector transformation expert at ISG. “There is an almost unprecedented need to address technology and IT staffing requirements through external contracts and service providers.”

U.S. governments and agencies tend to use Oracle products for sensitive core functions such as finance and public records management, and they have a natural aversion to rapid change and disruption, the report says. As a result, many are taking an incremental approach to application modernization, engaging with service providers to rehost or re-platform their existing Oracle applications to deliver familiar user experiences at a lower cost.

Deriving more value from data is also a major thrust of many digital transformation projects in the public sector, ISG says. New types of public services require access to once-siloed data by more agencies and constituents. SLED organizations are turning to Oracle ecosystem partners to extract, refine, consolidate and convert agencies’ reams of accumulated data from on-premises systems such as Oracle E-Business Suite for migration to Oracle Cloud.

“The cloud opens up many new uses for public data to serve constituents and multiple agencies,” said Jan Erik Aase, partner, and global leader, of ISG Provider Lens Research. “Oracle partners offer a growing number of tools to ensure the quality and accessibility of that data.”

As keepers of highly sensitive information about constituents, U.S. public sector agencies focus closely on security from cyberattacks when selecting service providers and moving existing functions and data to Oracle Cloud environments, ISG says. Strategies for achieving sustainability and other environmental, social, and governance (ESG) goals are also increasingly important in the U.S. public sector, as in other industries. Service providers are helping public agencies implement single, integrated Oracle platforms that make it easier to monitor and report ESG metrics.

The report also examines other issues affecting Oracle users in the public sector, including competition between Oracle Cloud Infrastructure and other hyper-scale public cloud platforms.

For more insights into the challenges facing U.S. public sector agencies, and advice about how to initiate and scope out Oracle application modernization projects, see the ISG Provider Lens™ Focal Points briefing here.

The 2022 ISG Provider Lens™ Oracle Ecosystem report for the U.S. Public Sector evaluates the capabilities of 20 providers across three quadrants: Consulting and Advisory Services, Implementation and Integration Services, and Managed Services.

The report names Accenture and Deloitte as Leaders in all three quadrants. It names Huron, IBM, Infosys, and PwC as Leaders in two quadrants each and DXC Technology, KPMG, and Wipro as Leaders in one quadrant each.

In addition, Huron, Infosys, and KPMG are named Rising Stars – companies with a “promising portfolio” and “high future potential” by ISG’s definition – in one quadrant each.

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