Rehost or Replace? The Finance Modernisation Dilemma
Gartner says 59% of enterprise applications are no longer fit for purpose. Here’s how CFOs decide whether to rehost or replace legacy finance systems, and why Oracle EPM Cloud is the smarter path
The Problem: Legacy Finance Systems Are Holding CFOs Back
Every year, finance teams spend millions maintaining systems that can’t keep up with modern business. Gartner’s 2025 CIO Report found that 59 % of enterprise applications are no longer fit for technical or business purpose.
In other words, more than half of the world’s finance stacks are slowing down the very transformation they’re supposed to enable.
CFOs are now forced to answer a difficult question:
Do we “lift and shift” what we have or rebuild for the future?
What Gartner Says About Modernisation Paths
Gartner outlines five core approaches to application modernisation:
- Rehost (Lift & Shift): Move the existing system to new cloud infrastructure with minimal change.
- Replatform: Migrate with limited optimisation to extend short-term life.
- Rearchitect: Redesign core components for scalability and flexibility.
- Rebuild: Rewrite the application from scratch for long-term innovation.
- Replace (Drop & Shop): Adopt a new SaaS platform built for continuous evolution.
- Each path has trade-offs in time, risk, and reward, but for finance, the choice often comes down to Rehost vs Replace.
Why “Lift & Shift” Isn’t Transformation
Rehosting buys time, but not capability.
It keeps old processes alive on new infrastructure, which may lower IT costs but rarely improves performance, agility, or insight.
Common problems after rehosting:
Forecasting and consolidation workflows still depend on manual steps.
Finance remains tied to IT for system updates.
Integrations with ERP or data platforms remain fragile.
Predictive and AI-driven forecasting remain out of reach.
Rehosting is like renovating an old office: fresh paint, same wiring.
The Case for Replacing, Full Modernisation with Oracle EPM Cloud
Replacing legacy finance tools with Oracle EPM Cloud is a genuine step-change.
It delivers a unified, continuously updated SaaS platform where finance, operations, and strategy connect in real time.
Here’s what CFOs gain:
Quarterly innovation cycles: new features, predictive models, and AI upgrades without disruption.
Integrated data foundation: native links to Oracle ERP, HR, and external data sources.
Finance-owned configuration: no more dependency on IT for every model update.
Scalability: add new business units or regions instantly.
Replacing isn’t about starting over, it’s about starting smarter.
How CFOs Decide
When evaluating modernisation paths, forward-thinking CFOs ask three questions:
Is our current system enhancing decision-making or just reporting history?
Can we implement predictive planning and scenario modelling without rebuilding?
Are we investing in maintenance or innovation?
If the answer to those questions leans toward maintenance, replacement becomes the rational choice.
Example: When “Rehost” Turned into “Replace”
A multinational manufacturer rehosted its on-prem Hyperion environment onto IaaS in 2023 to gain cloud flexibility.
Six months later, the finance team was still relying on spreadsheets, with updates taking days.
After switching fully to Oracle EPM Cloud, they cut their planning cycle time by 40 % and introduced rolling forecasts linked directly to operational drivers.
The difference wasn’t infrastructure, it was capability.
The Human Factor: Modernisation as Culture
Moving to Oracle EPM Cloud isn’t just a technical upgrade; it’s a cultural reset for finance.
Teams become faster, more collaborative, and more forward-looking.
Analysts gain ownership of models, CFOs gain real-time visibility, and finance becomes a strategic partner to the business — not a reporting function.
In Gartner’s language, this is the transition from “Run the Business” to “Change the Business.”
Why It Matters in 2025
Volatility is the new normal. Finance systems built for static planning can’t keep pace with AI, automation, or hybrid-work dynamics.
By 2028, Gartner expects 80 % of finance transformations to be powered by SaaS platforms that deliver continuous intelligence.
Those who modernise now will own the advantage, agility, insight, and credibility at the board table.
Those who delay will spend twice as much later trying to catch up.
Gartner data referenced from the Gartner CIO and Technology Executive Survey, 2H 2025. Interpretations and Oracle EPM applications reflect the author’s professional analysis.
