Posts Tagged ‘Oracle E-Business Suite’

Event Report: Day 1 At Oracle Open World 2013: The Quest For Innovation #oow13

Past Oracle Open Worlds Have Disappointed Customers and Partners

Let’s be frank.  The past five years at Oracle Open World have disappointed even the faithful.   The over emphasis on hardware marketing and revisionist history on cloud adoption bored audiences.  The $1M paid advertorial keynotes had people walking out on the presenters 15 minutes into the speech.  Larry Ellison’s insistence on re-educating the crowd on his points subsumed the announcements on Fusion apps.   Even the cab drivers found the audience tired, the show even more tiring.

Oracle went from hot innovative must attend event to has been while most industry watchers, analysts, and media identified shows such as Box’s BoxWorks, Salesforce.com’s DreamForce, and Exact Target’s Connections as the innovation conferences in the enterprise.  These events such as Constellation’s Connected Enterprise, capture not only the spirit of innovation but also provide customers a vision to work towards.  Hence, most believe Open World could use much needed rejuvenation and a shot of innovation juju (see Figure 1.)

Figure 1. Oracle Open World Lights Up San Francisco From September 22nd to September 27th

“Next Slide Please”: Oracle Enters A Period Of Reinvention At #OOW13

Walking through the event on Saturday (Day 0) and today (Day 1), one will notice a slight change in the spirit of the event. While half the base is die hard Oracle Red Stack customers (i.e. those who grew up from database to middleware to apps), the good news is the other half of the Oracle customers who came in through acquisition (i.e. or some say by accident) are present in larger numbers.  These customers by acquisition sought best of breed, took more risks, and fought in some cases not to be on the Oracle Red Stack.

For Oracle to win the innovation battle, the company must win over the mind share of the Oracle customers by acquisition.  In fact, these customers represent the early adopters representing market leaders and fast followers while the core Oracle Red Stack is more cautious adopters and laggards (see Figure 2).  Market leaders and fast followers have key components required for successful building blocks of corporate IT and often have line of business leaders that push the envelope.  Oracle must tap into that spirit in order to move its base forward towards innovation.

Figure 2. Organizational DNA Determines Pace And Appetite For Disruptive Tech Adoption

Open World 2013 Attempts To Change The Tenor Of Oracle’s Outward Conversation

In the spirit of innovation, attendees can expect six distinct mega themes to emerge from this uber event catering to 60,000 physical attendees and potentially 100,000 online.

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Market Maker 1:1: Steve Miranda, Oracle Fusion Applications Update – The Inside Story

The Inside Story On Oracle Fusion Apps At The End of 2012


Constellation sat down with Steve Miranda, Oracle’s Executive Vice President of Oracle Applications Product Development to discuss the state of Oracle Fusion Apps in a no-holds barred honest conversation about what’s working, what’s not, and what to look forward to in 2013.

R “Ray” Wang (RW): Steve Miranda is Executive Vice President of Oracle Applications Product Development. He is responsible for leading all aspects of product strategy, product development, and product delivery for Oracle’s applications and related cloud services. This includes Oracle Fusion Applications and Oracle’s newest products for customer service and support, commerce, and talent management.

Mr. Miranda joined Oracle in 1992 and has held a variety of leadership positions within the development organization. In 2007 he was asked to lead the engineering of Oracle’s next-generation suite of software applications, Oracle Fusion Applications. Under Mr. Miranda’s leadership, Oracle has continually delivered on its promise to help its applications customers innovate and remain competitive while leveraging their existing IT investments and increasing the value of those investments with new Oracle products and services.

Prior to Oracle, Mr. Miranda worked at GE Aerospace. He holds degrees in mathematics and computational sciences from Stanford University.

 

CATCHING UP ON ORACLE FUSION APPLICATIONS TRACTION

(RW): As 2012 is coming to an end it is a good time to reflect on how Oracle Fusion Applications has been doing this year. It would seem that Oracle’s been quite quiet about Oracle Fusion Applications throughout the year. Is the product selling? What’s the state of the Oracle Fusion Applications product lines?

Steve Miranda(SM): Oracle Fusion Applications is doing very well. We’re actively selling the product. In fact, we already have over 400 customers on Oracle Fusion Applications. We’re doing better than Salesforce.com when they started. Keep in mind, we have a rich customer base looking for innovation.

RW: When you say “Oracle Fusion Applications is selling well”, is that the whole suite or components of Oracle Fusion Applications?

SM: We are actively selling the product. More than 400 customers are on Oracle Fusion Applications, that’s any part of Oracle Fusion Applications, not including RightNow, Taleo, Oracle Business Analytics, or Oracle Fusion Middleware. Two thirds of the customers have chosen to deploy in a SaaS model. Then the second largest deployment model but far below are on-premise and the rest are hosted in our managed services.

RW: Does “managed services” means they own their own license, right?

SM: That’s correct. What’s powerful about these deployments patterns is that customers are accessing innovation faster than before. We are at over 100 live customers and are averaging one go-live a day right now.

RW: I understand that Oracle deployed Oracle Fusion Applications internally? How was that experience in “drinking your own champagne”?

SM: Ray, that’s correct. We did drink our own champagne and we are now using Oracle Fusion CRM internally instead of Siebel.. We have a global single instance for the business. When we deployed, we started out with 2 instances to show case a co-existence approach and an end-to-end Oracle Fusion Applications approach. As of June 1, 2012, Oracle Fusion CRM was up around the world. All the territories, forecasting, quotas, sales force automation, and contacts are in Oracle Fusion CRM globally.

RW: Is it one instance now?

SM: Yes. We also went live w/ Oracle Fusion Financials Accounting Hub on the back end. We replaced Hyperion and Oracle E-Business Suite GL and also went live June 1, 2012. We’ve already done several month-end closes and we also have Oracle Fusion Talent Performance Management up live. Employees and managers are now doing goal setting and appraisals.

RW: To be honest with you Steve, we aren’t seeing Oracle much in head to head competitive new deals. We don’t see big press releases about new wins. Where are the customers? Who’s buying what and why?

SM: Well, first of all, many of our existing customers are coming to us about Oracle Fusion Applications. Second of all, and you may not believe this, we’re not focused on publicity, but rather we want to ensure customer success.. Each go-live is very important to us. In our first set of go-lives, we have 10,000 customers who want to talk to the first 10 go lives. We also don’t want to overwhelm our initial customers.

Let me give you some details and examples so you understand the breadth and depth of what the Fusion Apps base looks like and so there’s no confusion. Here’s a selected slice:

More…

News Analysis: Oracle Launches Fusion Middleware 11g

Oracle Fusion Middleware 11g launch starts countdown to 100 days of innovation until Oracle Open World

In short, Oracle is putting forth a suite of middleware solutions that not only enable developers and software publishers to build their future solutions, but also deliver the middleware tools that will serve as the foundation for its go forward Oracle Fusion Applications.  There are a number of product updates in this Oracle Fusion Middleware 11g launch.  They include the Oracle Application Grid, Oracle SOA and Process Management, Oracle JDeveloper and Oracle ADF 11g, Oracle Applied WebCenter, Oracle Identity and Access Management, and Fusion Middleware Enterprise Manager (Note: the version of Oracle Enterprise Manager to manage Oracle Fusion Middleware 11g is 10g R3, this is the version currently available. – added 7/6/2009) What’s positive about this release is the number of customers who have already tested and proven that these solutions can work. In each one of the components, there are a list of customers who already use these solutions in their production environments.  Here are some high level product details:

  • Oracle Application Grid puts forth a foundation built on the Oracle WebLogic Suite (i.e. Oracle WebLogic Server 11g ) that adds GridLink for RAC, enterprise grid messaging, real operations automation, real operations insight, active cache, and enterprise manager. high availability – added 7/6/2009
    POV: Oracle pulls together their integrated platform for application development in a high performance computing SOA world.  This will prove to be the Oracle internal foundation for hosting and other OnDemand capabilities.
  • Oracle SOA and Process management infrastructure brings together technologies such as Oracle JDeveloper, Oracle BPA Suite, Oracle BPM Suite, Oracle BAM, Oracle BPEL Process Manager, Oracle CEP, Oracle Service Bus, Oracle Enterprise Repository, Oracle Services Registry, and Oracle Web Services Manager.
    POV
    : These common infrastructure components provide a way to mediate, orchestrate, manage business events and processes that support external integration, process governance, customizations, and change.  These will prove critical in hybrid deployments that bring the Web 2.0 world to Enterprise 2.0
  • Oracle JDeveloper and Oracle ADF 11g -the new team center and application development framework provides desktop integration to Microsoft Office and Java apps; new ADF Faces such as hierarchy viewers and carousels, SCA/SDO integration, and mobile development.
    POV
    : Hopefully, Oracle customers can benefit from a richer set of dev tools that can be used in custom development and for Fusion Apps.  This could provide the foundation for extending Oracle Fusion Applications or building apps on JDeveloper in a PaaS platform.
  • Oracle Applied WebCenter- solutions pulls together their Oracle WebCenter becomes the backbone collaboration infrastructure and Oracle Fusion Middleware architecture for collaboration in content management, business process management, and analytics.
    POV
    : Oracle customers get treated to a unified environment to deliver a consistent user experience for a Web 2.0 and more social enterprise experience.  The new release of Applied WebCenter may provide customers a unified UI strategy they have been looking for.
  • Oracle Identity and Access Management 11g includes enhanced features in areas such as identity management, provisioning and role management, web access management, Federation, entitlements management, fraud prevention, applications centric, and identity platform.
    POV
    : Oracle focuses on addressing reliable security, regulatory compliance, and help desk efficiencies for identity and access management.  Customers seek this level of single accountability and role based access as they keep adding SaaS and other deployment options.  With best of breed coming back in the form of SaaS, enterprises must move beyond single sign on (SSO).
  • Oracle Fusion Middleware Enterprise Manager builds management and monitoring across the stack including apps, middleware, database, and Virtualized Host/ OS / Network
    POV:  Oracle showcases a more unified attempt at managing the entire Oracle stack and environment.  Will it replace your HP, BMC Remedy or IBM Tivoli tools? No. Not completely, but it’s a good start.

The bottom line – Oracle raises the stakes in the stack wars with IBM and showcases its middleware foundation for Fusion Apps

Announcements today by Charles Phillips and Thomas Kurian provide insight into the compendium of Oracle product investments in Middleware. Oracle Fusion Middleware provides the critical “glue” to tie Oracle’s acquisitions back into a cohesive IT strategy for not only its customers but also Oracle’s “Red Stack”.  The stack wars with IBM, Microsoft, and Oracle focus on gaining the greatest percentage of the IT budget.  Oracle’s investments today and pending acquisition of Sun will change the landscape from a perceived apps rivalry with SAP to more a stack competition with Microsoft and a battle for the IBM “Blue Stack”.  In fact, as Oracle continues to acquire and invest in the service based industries IBM dominates today, expect Oracle to make the case for a “Red Stack” and create “Purple” stacks in the years to come.  The eventual prize – converting IBM “Blue Stack” clients to the “Red Stack”.  Don’t expect IBM to stand still so let’s see what the next move is in the continuing Stack Wars!

Your POV

What do you think about Oracle Fusion Middleware 11g?  Vaporware or real competition in the stack wars?  Will you be more compelled to bet on Oracle as part of your apps strategy?  Please post or send on to rwang0 at gmail dot com and we’ll keep your anonymity.

Copyright © 2009 R Wang. All rights reserved.

News Analysis: Oracle Waives Fees On Extended Support Offerings

Oracle President Charles Phillips pleasantly surprised Oracle Applications User Group (OAUG) Collaborate 09 attendees this morning during his keynote with the decision to waive Extended Support fees for a number of product lines through 2010 and 2011. As customers and prospects face one of the worst global economic crises, proactive relief on support and maintenance fees could not come at a better time.  Summary details of the program can be found in Figure 1.

Figure 1. Oracle’s Revised Support Policies

Oracle's New Support Offerings

(Source: Oracle Corporation)

Proactive change in support offering creates a win-win

Oracle’s move to address the support issue may stem from a variety of reasons but the main focus centers around improving the vendor-client relationship for a few reasons:

  • Responding to the global economic crisis.  Oracle has taken the initiative in listening to customers, partners, and industry watchers about customer reactions to the escalating costs of software maintenance.  Oracle’s Applications Unlimited and Lifetime Support Programs have been successful in retaining acquired customers and have shown customers that acquisitions need not be slash and burn with minimal reinvestment.
  • Providing more time for customers to adopt Fusion Apps. With the slow down, Oracle may be anticipating slower upgrade rates.  While no clear date and product road map has been communicated to customers, removing the price pressure on extended support fees provides customers with some breathing room on upgrade timing.
  • Mitigating attention on high profit margins and its M&A strategy. After touting record profit margins near 50% and continuing its M&A strategy with the announcement to acquire Sun, customers have become concerned about the impact of less choice in the market.   This move may appease regulators and industry watchers and show that Oracle has some self regulating policies.

The bottom line – user groups should now determine the minimum R&D percentage of investment from revenues

Oracle continues to gain economies of scale with each acquisition.  The good news – Oracle has the capacity to reinvest $2.6B per year into R&D and the real dollar amount has increased from 1.9B in 2006.  While this is a large figure, the bigger and more important issue – what percentage of the maintenance revenues have been reinvested?  Here’s where we find a slight drop from 12.6% to about 11.6% in 2008.  Consequently, like SAP’s users and user groups, OAUG and the other Oracle users and user groups should begin to track the ratio of R&D dollars that tie back to the amount of maintenance revenue.   In fact, they may want to take a look at the SUGEN KPI’s and see if they are applicable to Oracle’s environment.  R&D spend from maintenance and the need for Third Party Support options will be the key ownership issues for the next 5 to 10 years.  In any case, the need for preserving and strengthening independent user groups will be one effective check and balance in the consolidating world of enterprise software.

Your POV

Do you feel Oracle made the right move?  What have your experiences been like with Applications Unlimited and Lifetime Support?  Send me a private email to rwang0 at gmail dot com.  Posts are preferred!   Thanks and looking forward to your POV!

Copyright © 2009 R Wang. All rights reserved.

Research Summary: The Forrester WaveTM: Order Management Hubs, Q4 2008 – Sterling Commerce, Oracle, SAP, and Epicor Emerge As Leading Solutions That Support The Delivery Of A Perfect Order

FORWARD AND COMMENTARY

In the second update to the industry’s only business process-focused assessment of its kind, we evaluated eight leading order management hubs in a 152-criteria evaluation. The Forrester Wave provided head to head comparison of which order management hub solution would best support the 20 steps in a perfect order.  Importantly, the end to end business process included four major sub processes: Opportunity to Order Capture, Order Capture to Order Fulfillment, Order Fulfillment to order Completion, and Order Completion to Cash.

These demo-based product evaluations were conducted from April 2008 to August 2008 and interviewed eight vendor and 40 user companies including: Amdocs, Epicor Software, Infor, Manhattan Associates, Microsoft, Oracle (E-Business Suite and Siebel), SAP, and Sterling Commerce.  Unlike other analyst evaluations, the Forrester Wave contains no “magic” and provides end users with both transparency of the scoring process and flexibility to personalize weightings to best meet an end user’s scenario.  The tool is accessible via an XL spreadsheet.

RESEARCH HIGHLIGHTS

Introduction

Perfect orders drive a direct correlation to positive stakeholder satisfaction scores. Despite the benefits, success in consistently delivering a perfect order eludes many enterprises because existing systems lack the process and functional flexibility to deftly move orders across the end-to-end order management cycle. With pressure on enterprises to seek new ways to create market differentiation, order management hubs rise to prominence because:

  • Process-centric views trump yesterday’s functional fiefdoms.
  • Standardized best practices provide little value in today’s constant world of change.

Research Findings

We found that Sterling Commerce and Oracle E-Business Suite led the pack among the Leaders who delivered technologies that support the perfect order. Meanwhile, Oracle Siebel, SAP, and Epicor Software earned their Leader designation because of their strong support for end-to-end order management processes and forward-looking product strategies. Microsoft, Amdocs, and Manhattan Associates placed in the Strong Performer category for their specialization in targeted markets. The solutions evaluated represent eight of the top 10 to be considered in shortlist discussions for order management hubs customers seeking to achieve a perfect order: (See Figure 1.)

Figure 1: The Forrester WaveTM: Order Management Hubs, Q4 ’08

Main Graphic for OMH Wave Q4, 2008

Source: Forrester Research, Inc.

Report Links

Click on the link for the in-depth details and scores related to the 152 criteria used in this Forrester report: The Forrester WaveTM: Order Management Hubs, Q4 2008.  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.