Close
  • Latest News
  • Big Data and Analytics
  • Cloud
  • Networking
  • Cybersecurity
  • Applications
  • IT Management
  • Storage
  • Sponsored
  • Mobile
  • Small Business
  • Development
  • Database
  • Servers
  • Android
  • Apple
  • Innovation
  • Blogs
  • PC Hardware
  • Reviews
  • Search Engines
  • Virtualization
Read Down
Sign in
Close
Welcome!Log into your account
Forgot your password?
Read Down
Password recovery
Recover your password
Close
Search
Logo
Logo
  • Latest News
  • Big Data and Analytics
  • Cloud
  • Networking
  • Cybersecurity
  • Applications
  • IT Management
  • Storage
  • Sponsored
  • Mobile
  • Small Business
  • Development
  • Database
  • Servers
  • Android
  • Apple
  • Innovation
  • Blogs
  • PC Hardware
  • Reviews
  • Search Engines
  • Virtualization
More
    Home Applications
    • Applications
    • Database
    • Networking

    Ellison: Oracle Poised to Outgrow SAP in ERP Market

    By
    John Pallatto
    -
    March 20, 2007
    Share
    Facebook
    Twitter
    Linkedin

      Oracle CEO Larry Ellison claimed that his company is a “strong No. 2” to SAP in the ERP applications business and has the product strategy in place to outgrow its archrival.

      Ellison made his comments on March 20 as Oracle reported third-quarter financial results for fiscal 2007 that showed the company generated revenue of $4.4 billion, up 27 percent, and net income of $1.03 billion, up 35 percent from the same quarter last year.

      Software revenue was up 25 percent to $3.5 billion, with new applications license revenue up 57 percent, according to Chief Financial Officer Safra Catz. New database and middleware license revenue was up 17 percent while services revenue increased 36 percent to $916 million.

      /zimages/5/28571.gifClick here to read about the release of Oracles governance, risk and compliance suite.

      “We exceeded guidance on every metric with strong revenue growth across all product lines and in all geographies. Weve now completed 11 quarters of our five-year [Earnings Per Share] growth plan of 20 percent per year, and we are delivering earnings growth comfortably ahead of that target.” Catz said.

      Ellison said he believed that Oracle was well positioned to continue growing its ERP (enterprise resource planning) business faster than SAP can.

      “SAP may be the worlds No. 1 ERP company. But ERP is a slow-growing, relatively mature business,” Ellison said. SAP is concentrating on selling ERP software to smaller and midsize companies and is marketing separate product lines, including R3, MySAP and the new A1S product suite for the SMB (small and midsize business) market, Ellison noted.

      In contrast, Oracles strategy with its Fusion product line, which combines software from its multiple corporate acquisitions over the past four years, is “to have one ERP system, one suite, that will be available on demand, that will be available for small and midsize companies all the way to the largest companies,” Ellison said.

      Ellison also claimed that Oracle is “No. 1” and increasing its market share in the CRM (customer relationship management) market segment. “CRM is extremely important because it is a less mature marketplace. It is growing much faster than ERP and were gaining share,” he said.

      /zimages/5/28571.gifMicrosoft is taking on SAP, Oracle and Salesforce.com with its Dynamics brand. Click here to read more.

      Oracle is also expanding the sales of “industry-specific” application suites that it will sell to a wide range of its customers, from the largest down to midsize companies with revenue of about $100 million, he said. Ellison contended that this strategy will have a greater chance for success than SAPs strategy because it is selling one ERP and CRM system to the same customer set it is already calling on.

      Ellison also said Oracle “is off to a very solid start” in its Linux support business by signing Dell, Hewlett-Packard and CDW to resell its Oracle Enterprise Linux package.

      “We have signed a number of support contracts, some for over $500,000,” Ellison said. Furthermore, Oracle has “replaced Red Hat at Yahoo and numerous other customer sites” as the Linux support supplier. “Were not going to build the Linux business overnight. But we will build it,” he said.

      He also claimed that Oracle has overtaken rival BEA Systems in the middleware market. Oracles middleware business, he said grew 82 percent in the fiscal third quarter, while BEA reported that its middleware business grew 8 percent in its more recently reported quarter. Over the past 12 months Oracles middleware business grew an average of 60 percent compared with 12 percent growth for BEA.

      “It took us a long time—over five years—to catch and pass BEA, but we did it,” Ellison said.

      /zimages/5/28571.gifCheck out eWEEK.coms for the latest news, reviews and analysis about productivity and business solutions.

      John Pallatto
      John Pallatto has been editor in chief of QuinStreet Inc.'s eWEEK.com since October 2012. He has more than 40 years of experience as a professional journalist working at a daily newspaper and computer technology trade journals. He was an eWEEK managing editor from 2009 to 2012. From 2003 to 2007 he covered Enterprise Application Software for eWEEK. From June 2007 to 2008 he was eWEEK’s West Coast news editor. Pallatto was a member of the staff that launched PC Week in March 1984. From 1992 to 1996 he was PC Week’s West Coast Bureau chief. From 1996 to 1998 he was a senior editor with Ziff-Davis Internet Computing Magazine. From 2000 to 2002 Pallatto was West Coast bureau chief with Internet World Magazine. His professional journalism career started at the Hartford Courant daily newspaper where he worked from 1974 to 1983.

      MOST POPULAR ARTICLES

      Android

      Samsung Galaxy XCover Pro: Durability for Tough...

      Chris Preimesberger - December 5, 2020 0
      Have you ever dropped your phone, winced and felt the pain as it hit the sidewalk? Either the screen splintered like a windshield being...
      Read more
      Cloud

      Why Data Security Will Face Even Harsher...

      Chris Preimesberger - December 1, 2020 0
      Who would know more about details of the hacking process than an actual former career hacker? And who wants to understand all they can...
      Read more
      Cybersecurity

      Visa’s Michael Jabbara on Cybersecurity and Digital...

      James Maguire - May 17, 2022 0
      I spoke with Michael Jabbara, VP and Global Head of Fraud Services at Visa, about the cybersecurity technology used to ensure the safe transfer...
      Read more
      Cybersecurity

      How Veritas Is Shining a Light Into...

      eWEEK EDITORS - September 25, 2020 0
      Protecting data has always been one of the most important tasks in all of IT, yet as more companies become data companies at the...
      Read more
      Cloud

      Yotascale CEO Asim Razzaq on Controlling Multicloud...

      James Maguire - May 5, 2022 0
      Asim Razzaq, CEO of Yotascale, provides guidance on understanding—and containing—the complex cost structure of multicloud computing. Among the topics we covered:  As you survey the...
      Read more
      Logo

      eWeek has the latest technology news and analysis, buying guides, and product reviews for IT professionals and technology buyers. The site’s focus is on innovative solutions and covering in-depth technical content. eWeek stays on the cutting edge of technology news and IT trends through interviews and expert analysis. Gain insight from top innovators and thought leaders in the fields of IT, business, enterprise software, startups, and more.

      Facebook
      Linkedin
      RSS
      Twitter
      Youtube

      Advertisers

      Advertise with TechnologyAdvice on eWeek and our other IT-focused platforms.

      Advertise with Us

      Menu

      • About eWeek
      • Subscribe to our Newsletter
      • Latest News

      Our Brands

      • Privacy Policy
      • Terms
      • About
      • Contact
      • Advertise
      • Sitemap
      • California – Do Not Sell My Information

      Property of TechnologyAdvice.
      © 2021 TechnologyAdvice. All Rights Reserved

      Advertiser Disclosure: Some of the products that appear on this site are from companies from which TechnologyAdvice receives compensation. This compensation may impact how and where products appear on this site including, for example, the order in which they appear. TechnologyAdvice does not include all companies or all types of products available in the marketplace.

      ×