Oracle and Other Competitors
Do you still consider Oracle, PeopleSoft as your only competitors, or do you see infrastructure providers as becoming more your competitors? I can give you the definition in my way on the market. First of all in the enterprise application software market, if you consider SAP, and our top five branded competitors, we have a 59 percent share of that market.The world has decisively said, no to best of breed. Stay away from us. We cant handle the interfaces, we cant the integration, we cant handle the consulting costs, we cant handle the fact that you dont have a fully integrated solution. When another one is available, why would I ever choose you for goodness sake? You cant blame them. So thats that space. But if you broaden the definition, well, of all the applications companies that are out therebecause theres hundreds, if not thousands of themwhat is your share? We have an 18 percent share of that market, of the whole universe. The next closest [competitor] would be in the single digits. As for the BEA and some of the EAI companies, I consider them not to be competitors. I do consider them potentially getting into more of a marginal role in some of our customer establishments because of NetWeaver. Because if you can have the application stack, as well as the integration stack all come from one solution provider, why do business with a whole bunch of other companies? Whereas those companies grew up, especially some of the EAI companies, very fast, based on best-of-breed technologies stitching this stuff together. As companies now switch to a more integrative perspective, I think they are going to be looking for the integration layer along with the application layer in one simple solution. I know SAP has said it is supporting Oracles view of the marketand not necessarily Oracle. Have you done anything specific with the Department of Justice? Are you going to be part of the trial? In terms of the DoJ, any matters related to the DoJ, well refer to Bill Wohl. The Oracle matter, just to be clear on that, the 59 percent definition I gave to you is the DoJ definition basically of the marketplaceSAP and just a few other players. The 18 percent is the broader universe of application providers. We werent saying we support Oracle, we were saying we support the broader definition of the market. Because as you said, there are going to be new entrants and big brands in certain segments of the market. And there are going to be evolving players over time. So, just to limit it to the top two doesnt seem to make a lot of sense in terms of how you define the market. Check out eWEEK.coms Database Center at http://database.eweek.com for the latest database news, views and analysis. Be sure to add our eWEEK.com database news feed to your RSS newsreader or My Yahoo page:
So, in that market, Oracle, PeopleSoft, JDE, Siebel, i2you have your likely suspects. If you broaden the conversation, and by the way, whats interesting in that market is Siebel, who did very well two, three years agotheyre collapsing at the seams. Their market share is down in double digits year-over-year.