Oracle will drive CY14 revenue growth through business value messaging that defends its install baseDocument Transcript
T E C H N O L O G Y B U S I N E S S R ES E AR C H , I N C .
TBR EVENT PERSPECTIVE
Oracle will drive CY14 revenue growth
through business value messaging
that defends its install base
Oracle Corp.: Oracle OpenWorld 2013
San Francisco; Sept. 22–26, 2013
Elizabeth Hedstrom Henlin (email@example.com), Analyst
Oracle remains a market leader on the depth of its portfolio, the effective nature with which the company
integrates acquisitions, and the extent to which the company can monetize assets within a broad and diverse
install base. These assets enable Oracle to defend its install base and expand wallet-share revenue opportunities
by advancing its business value story, which appeals to IT and business buyers. Oracle will use its portfolio’s
proximity to customers’ business data as fuel for its marketing message of “simplifying IT” for better business
performance. This can keep competitors including IBM and SAP and disruptive threats such as MongoDB and
Workday away from Oracle’s install base. TBR believes cloud and on-premises applications will enable Oracle to
use its business value narrative to drive share-of-wallet revenue growth in 1H14, setting the stage for satisfied
customers to evaluate full Oracle Database 12c updates or deployments that occur in 2H14.
From Sept. 22 to 26, 2013, Oracle hosted more than 60,000 customers, partners and influencers in San Francisco at
Oracle OpenWorld 2013. Oracle’s vision for the future centers on the Oracle 12c database and the suite of
engineered systems, cloud technologies and business applications that surround and extend the capabilities of the
database technologies. With Oracle’s mission statement having centered on for some time “hardware and
software engineered to work together,” TBR notes the joint conference keynote of John Fowler, executive vice
president for Systems, and Thomas Kurian, executive vice president for Product Development, as a sign executives
are working across lines of business to tighten and synchronize the messaging presented to customers.
Across Oracle OpenWorld 2013 as well as at the Financial Analyst Summit held during the conference, Oracle
presented a consistently structured message to its customers and influencers alike, centering on business
problems faced by customers before presenting the Oracle product or suite best positioned to solve those
concerns. The predominant emphasis on closing most keynotes and all presentations to the financial analyst
community with customer success stories illustrates the successful messaging journey Oracle has taken under the
auspices of Chief Communications Officer Bob Evans. TBR believes Oracle’s messaging shift from selling products
to providing solutions is aimed at elevating Oracle portfolio awareness and establishing an understanding between
its direct sales force, and IT and C-Suite customers of how Oracle products can address pain points and provide a
road map for enhancing business value.
Impact and Opportunities
Oracle is elevating its messaging from a product-led sales strategy to a solution-led business value narrative aimed
at IT and C-Suite users. TBR believes Oracle’s shift from product- to solutions-driven business extends beyond
marketing, as products including Enterprise Manager are able to administer Oracle applications, cloud and
databases. By migrating its messaging and portfolio integration to solution sales, Oracle is aligning its resources to
expand wallet share in its install base and defend from vendors that can insert applications into Oracle database
installs. We believe Oracle’s evolving marketing strategy will increase partner engagement into CY14.
Understanding and articulating where Oracle technologies fit into newer (e.g., Microsoft, NetSuite,
Salesforce.com) and established (e.g., Accenture, Dell, HP) partnerships will serve as critical for Oracle to support
joint customers and enhance customer solutions.
TBR believes the central message of Oracle OpenWorld 2013 was the company’s rising investment in Oracle
Database 12c. Database 12c’s multitenancy and pending in-memory functionality position the new database as the
next step in Oracle’s “business value” strategy. We see Oracle Database 12c as a database approachable for lineof-business and IT users, with simplified processes for consolidation, provisioning and management (relative to
Oracle Database 11g). As highlighted by Senior Vice President Andy Mendelsohn at Oracle OpenWorld, the ability
to “manage many [databases] as one” creates operational efficiencies for customers alongside performance
improvements. TBR notes the “manage many as one” messaging and the accompanying demonstration at Oracle
OpenWorld clearly encapsulated the value for business and IT users in a single position.
We believe Oracle customers will find this a clear value proposition offering compelling realizations of the value of
Database 12c and the transformative business potential of the Oracle product portfolio. With in-memory
capabilities planned for release in CY14, Oracle Database 12c will remain a top focus for Oracle direct sales across
the next three to four quarters. Oracle will focus on highlighting the value of upgrading to Oracle Database 12c in
its install base to accelerate refreshes and defend its customer base from competitors. Most notably, SAP has the
opportunity to drive competitive engagements with Oracle database customers, as the in-memory capabilities for
Oracle Database 12c remain forthcoming while SAP HANA can deliver in-memory functionality. TBR sees the ability
of Oracle to sustain its business value narrative as critical to accelerating Oracle Database 12c sales, as customers
considering a full database refresh also have the opportunity to consider database replacements. As Oracle keeps
customers focused on business value as well as IT performance, the firm has the opportunity to position itself as a
trusted advisor and thought leader — using proven portfolio expertise as the competitive defense needed to
sustain its database market leadership over the long term.
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