In the highly competitive global software market there have been two major players slugging it out for the top spot: Oracle and SAP. Now as we move into a new decade, competition between the two has never been fiercer.
In the blue corner: The heavyweight software empire, Oracle
Headed up by CEO Larry Ellison, Oracle is one of the world's largest software houses. Since 2004 Oracle has acquired over 30 other companies as part of its global acquisition strategy, even swallowing up the controversial hardware company Sun Microsystems Inc. which closed during January of this year.
In the red corner: The middleweight innovator, SAP
A German company founded in 1972, this global provider of business software is led by co-CEOs Jim Hagemann Snabe and Bill McDermott. A company built around a dedication to in-house research and development, SAP has recently focused its efforts into Software on Demand and SaaS (Software as a Service) with a particular emphasis on targeting SMEs across the globe.
The battle for software supremacy
Oracle and SAP have spent the past decade battling it out to become the leading developer and provider of business software. Both companies have invested in innovation and development to produce the very best in ERP software. Oracle's trump card - Oracle Fusion Applications - is still under development, but many IT insiders feel that its eventual roll-out will guarantee Oracle a place at the top. On the other hand, SAP's innovative development strategies and its established NetWeaver application and integration platform has restored the faith of many an IT professional in the company's long term success.
In recent months Oracle has unveiled more of Fusion Applications and aimed it directly at SAPs current and future customers. However SAP haven't taken this move lying down, in addition to the future supply of software on demand, SAP is executing a plan to service-enable entire application suites around NetWeaver, taking its efficiency that one step further.
SAP also has another trick up its sleeve - dominating the ERP training and certification market. As leading providers of ERP training and certification, SAP has ensured that its software is accessible to anyone and everyone. Unfortunately Oracle are yet to see the strategy behind this accessible-to-all training, only offering ERP certification to a select customer base.
It's all about the "he said", "no, he said"...
As so often demonstrated in many a playground across the globe, competitive rivalry has now escalated into name-calling, mockery and even lawsuits! During 2007 Oracle filed a lawsuit against SAP, claiming violations of the Federal Computer Fraud and Abuse Act amongst many others!. Since then it's been a case of "he said", "no he said" from both established global businesses.
During a recent conference call to discuss Oracle's 3rd fiscal quarter, Larry Ellison mocked SAP's current SME strategy - "They have lost their way...if they don't want to be No 1, we sure do". In March it was reported that Bill McDermott "sneered" at Oracle's long term acquisition strategy stating that, in his opinion, buying up lots of businesses is not the best way to grow a software company. What's surprising about this is that in a recent press conference SAP's co-CEOs explained that after the success of their Business Suite acquisition they going to adopt a selective acquisition strategy. A move which no doubt prompted Ellison's mockery, but...
...who will have the last laugh?
After reporting a drop in profits during 2009, over the past year SAP has seen it's stock rise by only 33% in comparison to Oracle's increase of 47%. Despite the bitter rivalry between the two companies, it is becoming increasingly obvious that their biggest threats for the ERP top spot are no longer each other. Recent years have seen aggressive and innovative SaaS companies, such as Sybase, break their way into the market. With the emergence of younger, fresher companies on the battle field, this long-fought war is far from over!
Headed up by CEO Larry Ellison, Oracle is one of the world's largest software houses. Since 2004 Oracle has acquired over 30 other companies as part of its global acquisition strategy, even swallowing up the controversial hardware company Sun Microsystems Inc. which closed during January of this year.
In the red corner: The middleweight innovator, SAP
A German company founded in 1972, this global provider of business software is led by co-CEOs Jim Hagemann Snabe and Bill McDermott. A company built around a dedication to in-house research and development, SAP has recently focused its efforts into Software on Demand and SaaS (Software as a Service) with a particular emphasis on targeting SMEs across the globe.
The battle for software supremacy
Oracle and SAP have spent the past decade battling it out to become the leading developer and provider of business software. Both companies have invested in innovation and development to produce the very best in ERP software. Oracle's trump card - Oracle Fusion Applications - is still under development, but many IT insiders feel that its eventual roll-out will guarantee Oracle a place at the top. On the other hand, SAP's innovative development strategies and its established NetWeaver application and integration platform has restored the faith of many an IT professional in the company's long term success.
In recent months Oracle has unveiled more of Fusion Applications and aimed it directly at SAPs current and future customers. However SAP haven't taken this move lying down, in addition to the future supply of software on demand, SAP is executing a plan to service-enable entire application suites around NetWeaver, taking its efficiency that one step further.
SAP also has another trick up its sleeve - dominating the ERP training and certification market. As leading providers of ERP training and certification, SAP has ensured that its software is accessible to anyone and everyone. Unfortunately Oracle are yet to see the strategy behind this accessible-to-all training, only offering ERP certification to a select customer base.
It's all about the "he said", "no, he said"...
As so often demonstrated in many a playground across the globe, competitive rivalry has now escalated into name-calling, mockery and even lawsuits! During 2007 Oracle filed a lawsuit against SAP, claiming violations of the Federal Computer Fraud and Abuse Act amongst many others!. Since then it's been a case of "he said", "no he said" from both established global businesses.
During a recent conference call to discuss Oracle's 3rd fiscal quarter, Larry Ellison mocked SAP's current SME strategy - "They have lost their way...if they don't want to be No 1, we sure do". In March it was reported that Bill McDermott "sneered" at Oracle's long term acquisition strategy stating that, in his opinion, buying up lots of businesses is not the best way to grow a software company. What's surprising about this is that in a recent press conference SAP's co-CEOs explained that after the success of their Business Suite acquisition they going to adopt a selective acquisition strategy. A move which no doubt prompted Ellison's mockery, but...
...who will have the last laugh?
After reporting a drop in profits during 2009, over the past year SAP has seen it's stock rise by only 33% in comparison to Oracle's increase of 47%. Despite the bitter rivalry between the two companies, it is becoming increasingly obvious that their biggest threats for the ERP top spot are no longer each other. Recent years have seen aggressive and innovative SaaS companies, such as Sybase, break their way into the market. With the emergence of younger, fresher companies on the battle field, this long-fought war is far from over!
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