Global IT Industry Business Systems Platforms Presented By: Team Caffeine Maja H. Ahmetovic Gaurab Misra Saahil Goel Gina Ali Rahul Kapoor Alex Kelley

ERP is a $25B industry Major players – Oracle and SAP Oracle started in 1977 – first commercial SQL RDBMS In 2006, Oracle had 47% share in worldwide RDBMS market (Gartner 2006)

ERP is a $25B industry

Major players – Oracle and SAP

Oracle started in 1977 – first commercial SQL RDBMS

In 2006, Oracle had 47% share in worldwide RDBMS market (Gartner 2006)

Main competitor in ERP market - SAP Net Income as of May 2007 - $4,274M EPS as of June 2007 - $1.01 Main strategy for growth – via acquisitions

Main competitor in ERP market - SAP

Net Income as of May 2007 - $4,274M

EPS as of June 2007 - $1.01

Main strategy for growth – via acquisitions

Offers SOA/Web-services – increasing demand Growth by acquisitions Siebel: CRM PeopleSoft: HR Retek: Retail – also broke IBM’s partnership Oblix: Identity Management Time Ten: Data Management ProfitLogic: Retail Inventory Management Largest database manufacturer in the world

Offers SOA/Web-services – increasing demand

Growth by acquisitions

Siebel: CRM

PeopleSoft: HR

Retek: Retail – also broke IBM’s partnership

Oblix: Identity Management

Time Ten: Data Management

ProfitLogic: Retail Inventory Management

Largest database manufacturer in the world

Move towards collaborative/social computing Wiki OpenWorld Conference Can leverage competitive advantage in the database market By retaining big brands such as Siebel and PeopleSoft – they can boost their database sales even more Project Fusion – merging of all acquired technologies and marketing under the Oracle banner

Move towards collaborative/social computing

Wiki

OpenWorld Conference

Can leverage competitive advantage in the database market

By retaining big brands such as Siebel and PeopleSoft – they can boost their database sales even more

Project Fusion – merging of all acquired technologies and marketing under the Oracle banner

Ellison – co-founder of Oracle will retire soon Aggressive acquisition strategy – leads to less in-house innovation All players will eventually be absorbed Gradual move towards SOA and SaaS – still needs to support old systems and traditional software – increase maintenance costs

Ellison – co-founder of Oracle will retire soon

Aggressive acquisition strategy – leads to less in-house innovation

All players will eventually be absorbed

Gradual move towards SOA and SaaS – still needs to support old systems and traditional software – increase maintenance costs

Allowed customers to continue using their rival’s database – shows integrity and security. Also will build customer loyalty and competition would be healthy Positioning itself to become a one-stop shop for all business software needs Eliminates competition by acquiring them IBM lost it’s partners because of Oracle’s acquisitions

Allowed customers to continue using their rival’s database – shows integrity and security. Also will build customer loyalty and competition would be healthy

Positioning itself to become a one-stop shop for all business software needs

Eliminates competition by acquiring them

IBM lost it’s partners because of Oracle’s acquisitions

Broad customer base – opportunities for cross-selling – ERP to database customers and vice-versa By packaging software into bundles offered together like the Fusion Middleware portfolio Oracle clears a path to SOA systems With vast amounts of capital Oracle is positioning itself to have only one competitor, SAP

Broad customer base – opportunities for cross-selling – ERP to database customers and vice-versa

By packaging software into bundles offered together like the Fusion Middleware portfolio Oracle clears a path to SOA systems

With vast amounts of capital Oracle is positioning itself to have only one competitor, SAP

Partnership of the competition: SAP-IBM-Microsoft Joined products (MS Office applications linked to SAP products) Implementation (IBM a partner for SAP implementation, also providing middleware and complementary database software) Changing software industry eco-system Threat from overseas software development companies – India, China and Ireland May launch their own ERP system as Products

Partnership of the competition:

SAP-IBM-Microsoft

Joined products (MS Office applications linked to SAP products)

Implementation (IBM a partner for SAP implementation, also providing middleware and complementary database software)

Changing software industry eco-system

Threat from overseas software development companies – India, China and Ireland

May launch their own ERP system as Products

Uncertain, declining, levels of IT spending 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 Preference towards specific point solutions (SOA, Web Services) Slower sale of the traditional enterprise application packages Will Oracle keep up with the change? Preference of companies to custom-developed solutions

Uncertain, declining, levels of IT spending

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

Preference towards specific point solutions (SOA, Web Services)

Slower sale of the traditional enterprise application packages

Will Oracle keep up with the change?

Preference of companies to custom-developed solutions

Software as a service (SaaS) – Oracle On-Demand Target mid-sized companies also Be part of the open-source movement or they may be left out (with players like Google and recently IBM) Ad based revenue Collaborative software development Focus on recurring revenue Maintenance: more acquisitions SaaS: incrementally higher revenue by increasing usage by customers

Software as a service (SaaS) – Oracle On-Demand

Target mid-sized companies also

Be part of the open-source movement or they may be left out (with players like Google and recently IBM)

Ad based revenue

Collaborative software development

Focus on recurring revenue

Maintenance: more acquisitions

SaaS: incrementally higher revenue by increasing usage by customers

Re-organize their ERP systems to follow even more modular design Fill the need for customers who need highly customized solutions (custom-developed) Even smaller modules can be sold to small companies Open-source development is easier on smaller modules Makes it easier to test-market innovative strategies Will allow the company to implement SOA – for which there is tremendous growth

Re-organize their ERP systems to follow even more modular design

Fill the need for customers who need highly customized solutions (custom-developed)

Even smaller modules can be sold to small companies

Open-source development is easier on smaller modules

Makes it easier to test-market innovative strategies

Will allow the company to implement SOA – for which there is tremendous growth

Questions?

Questions?

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