Wednesday, February 13, 2013

Oracle Legacy Apps Holding Fusion Back?

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  Wednesday, February 13, 2013
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Doug Henschen
Doug Henschen
 
Oracle Legacy Apps Holding Fusion Back, Forrester Says

What do Oracle Fusion Applications and Prince Charles have in common? They're both direct heirs to the throne, but it doesn't seem like either one will ever get a chance to wear the crown. At least that's an analogy you might draw reading "Oracle's Dilemma: Applications Unlimited Versus Oracle Fusion Applications," a report released on Monday by Forrester Research.

Applications Unlimited is a policy Oracle adopted way back in 2006 as a promise to keep supporting and updating applications including Oracle e-Business Suite, PeopleSoft, JD Edwards and Siebel CRM. That was seven years ago, and Oracle has done a good enough job of keeping its various legacy apps up to date that a majority (64%) of customers want to keep them going, according to Forrester survey.

But with too many Oracle customers now standing pat, not enough are embracing Fusion Applications as the future. As a result, "Oracle's application revenue growth has underperformed both the overall software market and SAP, resulting from slowing growth in existing apps and too little revenue from its Oracle Fusion Applications," Forrester wrote.

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JOIN THE CONVERSATION Posted By Cindi Howson:
"In general, 22% per year for support is not unreasonable and is still below the industry average. While Oracle and SAP may charge 22% of net, Microsoft and IBM charge 24% to 25%. In the side by side analysis BI Scorecard does for BI platform vendors, some are higher and are based on list. BUT the big problem here is that SAP support ranks in the bottom tier according to our survey results, so it's hard to justify an increase without also providing a good level of support."
In reply to: SAP Plugs Profit Hole With Support Price Hike
View Entire Response | Post Your Own Reply

 
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VIDEOS
Intel Touts Tablets, Smartphones At CES 2013
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