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Oracle rebuttal to Forrester report

Oracle rebuttal to Forrester report

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Oracle tears into negative Forrester report.
Oracle tears into negative Forrester report.

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Published by: david.p.hamilton1785 on Feb 16, 2013
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07/10/2013

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Page 1 of 3
Oracle Observations on Forrester Research Note Titled “Oracle’s Dilemma: ApplicationsUnlimited Versus Oracle Fusion Applications”
1
 
Oracle welcomes the opportunity to make the following four factual observations related to thisresearch note authored by Forrester on Oracle’s application strategy:
 
1. This is a speculative note based on misconceptions and wrong hypotheses. Readers will noticethe repetitive use of “we believe,” “our theory,” “we think,” and “we don’t know for sure.”2. Forrester is misrepresenting Oracle’s business application strategy, implying that customershave a choice to make between Oracle Applications Unlimited and Oracle Fusion Applications.This is a wrong hypothesis from the start that conditions the rest of the note.Facts: Oracle has a co-existence strategy between Oracle Fusion Applications and OracleApplications Unlimited, where Oracle Applications Unlimited customers can adopt modules of Oracle Fusion Applications incrementally and at their own pace to co-exist with their existingdeployments. Never have we forced existing customers to move/migrate out of Oracle Applications Unlimited to adopt Oracle Fusion Applications. See for instance this white paper:http://www.oracle.com/us/products/applications/fusion/fusion-apps-new-standard-bus-wp-505097.pdf  Customers may not know what to do in the context of their specific implementation as eachdeployment is more or less specific, but Oracle’s strategy is very clear. We do not have adilemma.3. Forrester does not acknowledge the investments that Oracle has made in ApplicationsUnlimited stating that existing customers are “missing out on innovation.” In contrast, IDCreported after Oracle OpenWorld 2012 that “
The Oracle product teams conducted many sessionsat Oracle OpenWorld that focused on plans for future releases (e.g., Oracle E-Business Suite12.2, PeopleSoft 9.2) and long lists of enhancements. Road maps were detailed for the overall  product families and later expanded for specific areas such as financials, HCM, projects, and more. Plus, the enhancements are not just the minimum required to meet legislative regulationsbut are features (including mobile and social) requested by customers and that continue to drivethe product capabilities forward. This speaks well of the coexistence strategy that Oracle promotes for its applications as many customers use a variety of products (e.g., Oracle E- Business Suite Financials, PeopleSoft HCM, and Oracle Fusion Talent Management) to run their businesses and are not ready to move off these products.”
2
 Fact: Oracle has been investing in bringing innovation to Oracle Applications Unlimited, for instance with the iPad certification in PeopleSoft or with the new mobile capabilities andenhanced user interface in Siebel.
 
4. As a basis for this speculative research note (or as Forrester puts it to “test our theory”),Forrester did a survey of “
139 clients who self-identified as users of Oracle applications.
According to Forrester, this survey shows that “
of the clients we surveyed, 65% had no plans toimplement Oracle Fusion Applications, and another 24% did not know if they would 
.”
 
This survey was done eight months ago in June 2012, so it doesn’t necessarily representcurrent market conditions.

1
Forrester, Oracle Dilemma: Applications Unlimited Versus Oracle Fusion Applications – William Band, Andrew Bartels, Paul D.Hamerman, and China Martens – February 11, 2013
2
IDC, Oracle OpenWorld 2012: Oracle Applications Update – Christine Dover, Michael Fauscette, Vanessa Thompson, MaryWardley, Robert P. Mahowald, Amy Konary – November 2012
 
Page 2 of 3
 
Forrester didn’t specify the number of unique companies being surveyed – only the totalnumber of respondents.
 
45% of the respondents are using Oracle Hyperion. Hyperion doesn’t really have anything todo with the context.
 
The survey was limited to the US (60% of respondents) and to Europe (40% of respondents).There is no representation from Asia Pacific, Japan, Latin America, Eastern Europe, Africa or Middle East.
 
The survey was heavily targeted to manufacturing companies (27%); and government,education, and healthcare (17%), so not representative of the entire industry spectrum.Moreover as IDC highlighted it in a research note published in November 2012, “
thecoexistence strategy is important as Oracle Fusion Applications do not yet have all of thecapabilities of some of the more established Oracle applications, particularly inmanufacturing. This is not a knock on Oracle Fusion Applications as they are a relativelynew suite of products that are focused more on non-manufacturing industry verticals and need time to mature
.”
3
 
 
We also question the ability for an Oracle Applications user in Manufacturing (for instance)to address questions such as “
Why doesn’t your firm plan to use Oracle Fusion Applications?
” with options to respond such as “O
racle’s applications strategy is unclear 
”,
not mature enough
”, or “
high licensing costs
”. How would a manufacturing worker know?And actually 26% responded “Other”, suggesting that some respondents didn’t really knowhow to respond.
 
And of course, there is no need to elaborate more but many questions were phrased in anegative way – see for instance
What do you dislike most about your firm’s most important Oracle applications?
” or “
Why doesn’t your firm plan to use Oracle Fusion Applications
?”.Fact: In December 2012, Oracle publicly stated that “Oracle Fusion Applications is doing verywell”
4
and publicly reported over 400 customers for Oracle Fusion Applications – that is anymodule of Oracle Fusion Applications excluding RightNow, Taleo, or any other recentacquisitions. “This is more than when Salesforce started.”
5
 
Resources
The following resources are available to provide a fact-based perspective on our applicationsstrategy and business:
 
Constellation Research, Market Maker 1:1, Steve Miranda, Oracle Fusion ApplicationsUpdate - The Inside Storyhttp://www.constellationrg.com/blog/2012/12/market-maker-11-steve-miranda-oracle-fusion-applications-update-inside-story 
 
IDC, Oracle OpenWorld 2012: Oracle Applications Updatehttp://www.oracle.com/us/corporate/analystreports/idc-apps-openworld-2012-1877446.pdf  
 
 Nucleus Research, Technology Value Matrix Second Half 2012http://www.oracle.com/us/corporate/analystreports/enterprise-application/nucleus-crm-value-

3
Source: IDC, Oracle OpenWorld 2012: Oracle Applications Update – Christine Dover, Michael Fauscette, Vanessa Thompson,Mary Wardley, Robert P. Mahowald, Amy Konary – November 2012 - http://www.oracle.com/us/corporate/analystreports/idc-apps-openworld-2012-1877446.pdf 
4
Source: Constellation Research, Market Maker 1:1: Steve Miranda, Oracle Fusion Applications Update – the Inside Story – December 31, 2012 - http://www.constellationrg.com/blog/2012/12/market-maker-11-steve-miranda-oracle-fusion-applications-update-inside-story
5
Source: Constellation Research, Market Maker 1:1: Steve Miranda, Oracle Fusion Applications Update – the Inside Story – December 31, 2012 - http://www.constellationrg.com/blog/2012/12/market-maker-11-steve-miranda-oracle-fusion-applications-update-inside-story

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