Friday, March 19, 2010

SAP and Oracle.

We all know that SAP and ORACLE are two Top market leader in ERP. They are competitor at highest level. Here i will disclose some close relation between SAP and ORACLE. what SAP say about ORACLE and the REALITY..

1. Market leadership

SAP will say: “SAP has a 62% market share of its global peer group (peer group includes Oracle, Microsoft, and i2). In that same peer group, Oracle has 25% market share according to SAP” *

SAP doesn’t have 30,000 customers, but installations. See this Gartner report for details
SAP’s total revenue may have grown substantially, but its application license hasn’t. SAP adds in NetWeaver licenses and database licenses in its apps licenses, so the actual growth of their applications business is not known.

While Oracle’s apps margin in smaller than that of SAP, Oracle doesn’t disclose its apps margin, so SAP cannot know what the exact margin is.

2. Focus on Enterprise Applications

SAP will say: “Applications is in our DNA; SAP has a solid track record of enabling customers to become best-run businesses”


3. Industry and Business Process Capabilities

SAP will say: “SAP delivers deep industry specific capabilities based on learning from leaders in every industry”

Reality:SAP is proficient at talking the talk, and very often in that aspect only. Most of SAP’s industry customers actually don’t use SAP’s industry solutions, but horizontal solutions. For example, for Financial Services, only 22% of SAP banking customers actually use an SAP Financial Services solution. The other 78% uses horizontal solutions like Purchasing and HCM

Oracle has Business Flow Navigators that aid during the implementation of EBS, and parameterize the application to support specific industry behavior. Accelerators speed up the implementation with predefined sets of rules and preloaded data.

SAP is so busy building NetWeaver together with its Enterprise Services Architecture (ESA) and its Business Process Platform (BPP), that it doesn’t have the resources to keep up its vertical solutions with the release cycle of its horizontal MySAP ERP. SAP’s industry solutions for BPP product are planned for beyond 2009.

4. Superior Technology Architecture:

SAP will say: “SAP’s superior architecture provides flexibility and choice for customers and delivers higher value”

Reality: SAP doesn’t have a business rules engine. So how can SAP be process centric, and Oracle not?

SAP will say: Oracle consists of many acquired solutions, so there is not a single data model

True in principle, but the same is true for SAP
The difference is: with Oracle, customers have a choice. They can run on a single data model if they want to (with EBS, PSFT, or JDE), or they can select the best-of-breed solutions that they want, get the best functionality, combine it with a suite (EBS, PSFT, or JDE) and deploy AIA, such that it works as an integrated suite.

5. Lower Total Cost of Ownership

SAP will say: “CIO’s care more about Total IT Costs than just TCO; SAP reduces Total IT Costs and frees up dollars for business process innovation”


Next to Come ....
  • Evolutionary Approach to Innovation
  • Customer Risks with Oracle’s Fusion
  • Partner Ecosystem
  • Proven Migration from Oracle to SAP
  • Trust, Predictability, Accountability

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