Global It Industry – Oracle

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  • Global It Industry – Oracle

    1. 1. Global IT Industry Business Systems Platforms Presented By: Team Caffeine Maja H. Ahmetovic Gaurab Misra Saahil Goel Gina Ali Rahul Kapoor Alex Kelley
    2. 2. <ul><li>ERP is a $25B industry </li></ul><ul><li>Major players – Oracle and SAP </li></ul><ul><li>Oracle started in 1977 – first commercial SQL RDBMS </li></ul><ul><li>In 2006, Oracle had 47% share in worldwide RDBMS market (Gartner 2006) </li></ul>
    3. 3. <ul><li>Main competitor in ERP market - SAP </li></ul><ul><li>Net Income as of May 2007 - $4,274M </li></ul><ul><li>EPS as of June 2007 - $1.01 </li></ul><ul><li>Main strategy for growth – via acquisitions </li></ul>
    4. 4. <ul><li>Offers SOA/Web-services – increasing demand </li></ul><ul><li>Growth by acquisitions </li></ul><ul><ul><li>Siebel: CRM </li></ul></ul><ul><ul><li>PeopleSoft: HR </li></ul></ul><ul><ul><li>Retek: Retail – also broke IBM’s partnership </li></ul></ul><ul><ul><li>Oblix: Identity Management </li></ul></ul><ul><ul><li>Time Ten: Data Management </li></ul></ul><ul><ul><li>ProfitLogic: Retail Inventory Management </li></ul></ul><ul><li>Largest database manufacturer in the world </li></ul>
    5. 5. <ul><li>Move towards collaborative/social computing </li></ul><ul><ul><li>Wiki </li></ul></ul><ul><ul><li>OpenWorld Conference </li></ul></ul><ul><li>Can leverage competitive advantage in the database market </li></ul><ul><li>By retaining big brands such as Siebel and PeopleSoft – they can boost their database sales even more </li></ul><ul><li>Project Fusion – merging of all acquired technologies and marketing under the Oracle banner </li></ul>
    6. 6. <ul><li>Ellison – co-founder of Oracle will retire soon </li></ul><ul><li>Aggressive acquisition strategy – leads to less in-house innovation </li></ul><ul><ul><li>All players will eventually be absorbed </li></ul></ul><ul><li>Gradual move towards SOA and SaaS – still needs to support old systems and traditional software – increase maintenance costs </li></ul>
    7. 7. <ul><li>Allowed customers to continue using their rival’s database – shows integrity and security. Also will build customer loyalty and competition would be healthy </li></ul><ul><li>Positioning itself to become a one-stop shop for all business software needs </li></ul><ul><li>Eliminates competition by acquiring them </li></ul><ul><li>IBM lost it’s partners because of Oracle’s acquisitions </li></ul>
    8. 8. <ul><li>Broad customer base – opportunities for cross-selling – ERP to database customers and vice-versa </li></ul><ul><li>By packaging software into bundles offered together like the Fusion Middleware portfolio Oracle clears a path to SOA systems </li></ul><ul><li>With vast amounts of capital Oracle is positioning itself to have only one competitor, SAP </li></ul>
    9. 9. <ul><li>Partnership of the competition: </li></ul><ul><ul><li>SAP-IBM-Microsoft </li></ul></ul><ul><ul><ul><li>Joined products (MS Office applications linked to SAP products) </li></ul></ul></ul><ul><ul><ul><li>Implementation (IBM a partner for SAP implementation, also providing middleware and complementary database software) </li></ul></ul></ul><ul><li>Changing software industry eco-system </li></ul><ul><ul><ul><li>Threat from overseas software development companies – India, China and Ireland </li></ul></ul></ul><ul><ul><ul><li>May launch their own ERP system as Products </li></ul></ul></ul>
    10. 10. <ul><li>Uncertain, declining, levels of IT spending </li></ul><ul><ul><li>Spending lags due to the time difference between the implementation of a new technology and the full exploitation of its features by the organization that is using it </li></ul></ul><ul><li>Preference towards specific point solutions (SOA, Web Services) </li></ul><ul><ul><li>Slower sale of the traditional enterprise application packages </li></ul></ul><ul><ul><li>Will Oracle keep up with the change? </li></ul></ul><ul><li>Preference of companies to custom-developed solutions </li></ul>
    11. 11. <ul><li>Software as a service (SaaS) – Oracle On-Demand </li></ul><ul><li>Target mid-sized companies also </li></ul><ul><li>Be part of the open-source movement or they may be left out (with players like Google and recently IBM) </li></ul><ul><ul><li>Ad based revenue </li></ul></ul><ul><ul><li>Collaborative software development </li></ul></ul><ul><li>Focus on recurring revenue </li></ul><ul><ul><li>Maintenance: more acquisitions </li></ul></ul><ul><ul><li>SaaS: incrementally higher revenue by increasing usage by customers </li></ul></ul>
    12. 12. <ul><li>Re-organize their ERP systems to follow even more modular design </li></ul><ul><ul><li>Fill the need for customers who need highly customized solutions (custom-developed) </li></ul></ul><ul><ul><li>Even smaller modules can be sold to small companies </li></ul></ul><ul><ul><li>Open-source development is easier on smaller modules </li></ul></ul><ul><ul><li>Makes it easier to test-market innovative strategies </li></ul></ul><ul><ul><li>Will allow the company to implement SOA – for which there is tremendous growth </li></ul></ul>
    13. 13. <ul><li>Questions? </li></ul>
    14. 14. 360Commerce Agile AppForge AutoVue Bharosa Crystal Ball Demantra G-Log Hyperion iFlex JD Edwards EnterpriseOne JD Edwards World LODESTAR MetaSolv Oblix OctetString PeopleSoft Portal Software ProfitLogic Retek Siebel Sigma Dynamics Sleepycat Berkeley DB Stellent SPL WorldGroup Sunopsis Tangosol Telephony @Work TimesTen in Memory DB Thor Technologies

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