Oracle Fusion rollout costs 15 times council’s estimates in SAP rip-‘n-replace

West Sussex County Council expects the cost of swapping its ERP system from SAP to 甲骨文 to go from ￡2.6 million ($3.26 million) to nearly ￡40 million ($50 million), as the council seeks a new implementation partner for a project that began nearly five years ago.

The disastrous project joins Birmingham City Council on the list of Oracle’s “wins” from SAP, which Oracle co-founder and supremo Larry Ellison may come to regret boasting about. Responsible for spending ￡2 billion ($2.5 billion) on local services, the council said it was reviewing the migration from an aging SAP ERP system to a cloud-based instance of Oracle Fusion, a migration which began in 2019, after parting ways with systems integrator DXC.

The program to procure new business and systems partners for the migration will kick off next month. The final element of the new system is expected to go live in April 2026, just months before support for the current SAP system is set to end.

According to a Performance and Finance Scrutiny Committee report published earlier this month, the Council said that in November 2019 it decided to go to sign up an SI partner to “lead the implementation of a cloud based system (Oracle Fusion).”

The report added: “At that time, a budget of ￡2.6 million was agreed. Later decisions were made to deliver business change through a combination of other suppliers and Council staff and to reset the programme budget to ￡14.07 million (￡7 million in March 2021… and ￡7.07 million in October 2022).”

However, the council is now asking for an additional ￡26 million to cover the implementation from 2024 to 2028, “including the procurement of external support, a programme delivery team and a contingency of ￡4 million.” The request takes the total expected cost to around ￡40 million ($50 million).

The council can only put the cause of the increase down to “various delays and difficulties experienced in the programme.”

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