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Brief Note on Oracle ERP Strategy.

Benefit From Gray Arrow Kaytek IT - Oracle ERP Strategy Insights

Down Arrow Update on Oracle Strategy (3rd January 2009).

ORACLE faces some interesting challenges not only in the ERP space but also in the RDBMS space which is it's mainstay currently in terms of revenues and market share.

First, ERP Offerings are moving to the Cloud under a SAAS - Software As A Service Model.

Though ORACLE has On Demand Hosted ERP Service Offerings, it has been reported that it's top management is not very clear on the profitability of the same in the near future.

Just as SAP has pulled back it's Business By Design On demand Hosted ERP Service Offerings in some markets for fear of cannibalizing it's existing License Revenues, ORACLE is reportedly not very keen on getting into the SAAS space for the same reasons.

In it's traditional strength area - RDBMS, it faces many challenges specially from Cloud Computing Players. SUN MICROSYSTEM's acquisition of mySQL poses an interesting challenge to ORACLE in the cloud computing space in the near future. It makes eminent sense for SUN to offer mySQL Hosted Services similar to Microsoft's SQL Data Services, Amazon's SimpleDB & Simple Storage Service & offerings from Google App Engine's Big Table & Zoho's SQL in the Cloud services.

Oracle needs to respond to the same.

Down Arrow Oracle ERP Strategy

One of the globally renowned ERP forums, Kaytek Consulting Director participated in an electronic email discussion on Oracle's ERP Strategy. (5th August 2005).

Have a look at the Software Internal Layers Visual.

ORACLE works at the Storage - Database Layer of Applications in the Enterprise.

As an RDBMS (Relational Database Management System), it is the Global market leader.

Naturally, it's strategy is to leverage it's strength and usage of it's RDBMS in Enterprises in providing an ERP solution.

It's E-Business Suite has been built around the Oracle Database.

Oracle is also offered with Compiere Open Source ERP as it's Back-End Database. A safe bet to ward off the Open Source Database Software (e.g. mySQL, etc) Threat.

In an ERP application, functionality is built around the organization's requirements in different business areas.

This functionality in the User Interface and the Middle Business Application area has to be built on a strong storage and database layer.

One could now compare and contrast SAP and ORACLE's strategic Enterprise approaches in an easy manner.

ORACLE as an RDBMS Player at the Ground Floor DataBase Layer is trying to build Top Floor ERP application capabilities around it's core Database offering.

Email us for more information.

It is moving from Bottom to The Top within an Enterprise's Application Stack.

Oracle Chief referred to the i-flex takeover as moving Beyond ERP .

SAP's Enterprise Solution is strong in providing the entire organizational functionality as regards Managing An Organization's M-Assets.

The Square Separator Men (& Women) Square Separator Methods Square Separator Money Square Separator Markets Square Separator Materials Square Separator Mortar-Brick Square Separator Machines Square Separator Messages & Square Separator Miscellaneous

SAP is Database Independent.

It uses ORACLE (amongst other RDBMS) at the Database Layer besides working equally well with other databases like Microsoft SQL Server, IBM DB2, etc.

As one can see, both are targetting large enterprises for complete scope of functionality but from opposite directions.

Down Arrow SAP is moving from Top Downwards. Via Netweaver (Middleware) integration.

Up Arrow Oracle from Bottom Upwards.
Opposite Directions.

But the same goal.


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Updated on 1st April 2013
Created on 5th August 2005

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