Why Lift-and-Shift ERP Strategies Are Inadequate for Modern Revenue Models
Lift-and-shift ERP (enterprise resource planning) migrations often fall short in supporting modern, subscription-based revenue models, but decoupling billing with platforms like Zuora simplifies complexity, ensures compliance, and enables faster, more flexible monetization. In a recent ERP Today, Radhika Ojha highlights a growing challenge for ERP teams: lift-and-shift migrations aren’t keeping up with today’s recurring and usage-based revenue models. Moving a legacy ERP to the cloud might improve infrastructure, but it doesn’t fix outdated billing logic. Traditional ERPs were built for linear transactions—one order, one invoice, one payment. That’s not enough when your business model includes subscriptions, mid-cycle changes, and usage-based billing. The result? Manual workarounds, custom code, and risk of revenue leakage. Ojha shares a real-world use case with 24 Hour Fitness. Their Oracle ERP could only bill members on six fixed days per month. This led to complex proration and delayed revenue recognition. Instead of re-engineering their ERP, they integrated Zuora—a purpose-built billing platform—and moved to daily billing. The outcome: more flexibility, fewer errors, and faster cash flow. The smarter approach, according to Ojha, is to let your ERP handle the general ledger. Use a platform as a revenue sub-ledger to manage subscriptions, billing, and compliance. This decoupled model reduces ERP customization, speeds up transformation, and gives finance real-time data. This matters to ERP teams because it reduces risk during ERP migrations, it automates complex billing and revenue recognition, and it supports faster product launches and pricing changes. If your revenue model has evolved, Ojha concludes, your ERP strategy needs to evolve too. Lift-and-shift alone just won’t get you there.
