Research Summary: Which Has The Better Apps Strategy: Oracle Or SAP? Oracle’s Bold Next-Generation Play Versus SAP’s Less Disruptive Path

Published on November 22, 2008 by R "Ray" Wang

Forward and Commentary

With my esteemed colleagues John R. Rymer and Paul D. Hamerman, we recently updated our Oracle Versus SAP In Enterprise Applications: Let The Battle Of Architectures Begin! report published in May 31st, 2006.  This new update was released October 31, 2008 and highlights a shift in direction and vendor vision for both Oracle and SAP’s future.  This report was the result of 12+ months of active research.  We placed significant emphasis on primary research, discussions with system integrators, conversations with leading customers, and on-the-record and off-the-record discussions with current and former Oracle and SAP employees.

Executive Summary

A key decision criterion for enterprise applications is how compelling and clear the vendor’s vision for the future is. Oracle’s vision for the future of its apps business is now clearer and more compelling than that of archrival SAP. But Oracle’s biggest test is yet to come: it must deliver the Oracle Fusion Applications system with its associated promises of better flexibility and lower cost of ownership and do it within the next two years to keep the upper hand in apps innovation. SAP offers a gradual and potentially less disruptive path for enterprise customers, evolving its current release piece by piece; it has also taken its innovative SAP Business ByDesign product off the table as its next-generation suite. Each vendor now offers more (and more complex) paths for customers to consider, but it is unlikely that mass defections will take place in either direction. Despite the size and influence of Oracle and SAP, customers should challenge the vendors to prove the value of their migration and upgrade strategies, including assessing whether either vendor offers better front-office or vertical solutions than best-of-breed suppliers or emerging cloud-based solutions.

Report Links

Click here for the link to the Forrester report: Which Has The Better Apps Strategy: Oracle Or SAP? Oracle’s Bold Next-Generation Play Versus SAP’s Less Disruptive Path. For media courtesy requests, please send me an email to rwang@forrester.com

Your POV.

Would love your feedback on the report.  You can post here or send me a private email to rwang0@gmail.com.

Copyright © 2008 R Wang. All rights reserved.

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