Global IT IndustryBusiness Systems Platforms

Global IT IndustryBusiness Systems Platforms

Presented By:Team Caffeine

Maja H. AhmetovicGaurab Misra

Saahil GoelGina Ali

Rahul KapoorAlex 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)

• 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

• 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

• 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

• 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

• 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

• 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