Tuesday, March 27, 2007
The Human Capitalist » Oracle: The Smartest Guys in the Room
The Human Capitalist » Oracle: The Smartest Guys in the Room: "Why I think the Fusion approach has been brilliant…
Although Oracle announced an impressive growth number in new application license sales during this past quarter, I believe they have also frozen a huge chunk of new application spend especially with existing PeopleSoft customers and prevented mass migration to SAP, Workday, Ultimate, etc. Most PeopleSoft customers I have spoken with over the past 12 months have maintained a holding pattern with their spend. Most are waiting for Fusion, while supplementing their ERP-centric application strategy with SaaS vendors such as Taleo and SuccessFactors and a few brave souls have made upgrade to 8.9, 9.0 and beyond.
With Apps Unlimited, they have ensured the customer base that they will have unlimited support for their applications. What a great way to ensure the continued dollars going into the maintenance bucket where huge profits reside.
The lack of clarity around Fusion have set the expectations so low, Oracle only has upside to prove value in the new applications. I believe many wallets will reopen in 2008 and Oracle will have a window of opportunity to reclaim and even grow wallet retention. If they fail though, it could leave the door wide open to the new incumbents and even SAP"
Although Oracle announced an impressive growth number in new application license sales during this past quarter, I believe they have also frozen a huge chunk of new application spend especially with existing PeopleSoft customers and prevented mass migration to SAP, Workday, Ultimate, etc. Most PeopleSoft customers I have spoken with over the past 12 months have maintained a holding pattern with their spend. Most are waiting for Fusion, while supplementing their ERP-centric application strategy with SaaS vendors such as Taleo and SuccessFactors and a few brave souls have made upgrade to 8.9, 9.0 and beyond.
With Apps Unlimited, they have ensured the customer base that they will have unlimited support for their applications. What a great way to ensure the continued dollars going into the maintenance bucket where huge profits reside.
The lack of clarity around Fusion have set the expectations so low, Oracle only has upside to prove value in the new applications. I believe many wallets will reopen in 2008 and Oracle will have a window of opportunity to reclaim and even grow wallet retention. If they fail though, it could leave the door wide open to the new incumbents and even SAP"
