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The Bigest Bluff In Erp History

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This articles discusses the potential gamble that Oracle has
taken with their acquisitions and Fusion.


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642 Words; formatted to 65 Characters per Line
Distribution Date and Time: 2007-09-18 16:00:00

Written By:     Onuora Amobi
Copyright:      2007
Contact Email:  mailto:[EMAIL PROTECTED]


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The Bigest Bluff In Erp History
Copyright (c) 2007 Onuora Amobi
Nnigma Inc.
http://www.Windows-Vista-Update.com



All or nothing

Larry Ellison has called the biggest bluff in enterprise software
history.

He has bet that his Oracle corporation can create a landmark
enterprise application suite that will knock the socks off all
the critics and analysts and add more value to organizations than
any other ERP suite in history.

Oracle has acquired over 20 companies in the past 5 years and has
been busily integrating those companies and applications into one
suite.

There are challenges with this approach.


 * Obviously with every acquisition the company makes, it has had
to integrate or layoff employees from the acquisition victim. On
the other hand, it seems to have done this with a certain
clinical efficiency that seems to have worked.

 * This has never been done before. The scope and breadth of this
development effort is unparalleled in the history of enterprise
systems. Oracle SVP of application development John Wookey has
the unenviable task of pulling together massive applications,
developers and their development platforms and trying to create
one cohesive yet intuitive platform. If he pulls this off, he
will go down in software development history as a software
demigod.

 * Their main competitor SAP has not been exactly snoozing. They
have taken advantage of the vacuum in the large ERP market and
signed up customers at a rapid pace. While they have stumbled a
little bit with their ALLEGED inappropriate downloads etc, they
are still very formidable.

 * The certainty of a stable economy: The United States has had a
 relatively good run economically for almost 6 years now.
Unemployment has remained low and so has inflation. The U.S. has 
also moved agressively to discuss and face head on the
potentially looming mortgage crisis. If any of these factors
change and the other shoe drops while Oracle is launching their
fusion product, it could make the sale of their multi-million
dollar software challenging.

 * The sheer risk of it all: Oracle has bet the farm on this
approach and acquired a lot of companies to boot. If the finished
product is underwhelming and cannot justify the necessary value
proposition and ROI, the consequences would be disastrous. First
of all, the consensus would be impossible to keep a secret. Word
would spread on the street and customers would stay away. SAP
would become an even more attractive alternative. Oracle's share
price would also take a beating.


Bottom line, it's a lot of risk..

There are some mitigating factors here...

1) It's friggin Larry Ellison. Not only is he business saavy,
bold and daring but he UNDERSTANDS software. he is (allegedly) a
hard taskmaster and knows what he needs to get from his people.

2) His people: Based on their bios, it seems that Larry hired
some of the best and brightest in the industry. From Charles
Phillips to John wookey to Charles Philips etc, the team seems to
be in top form and up to the task.

3) The ERP industry has been overdue for a change and some
excitement. There were 3 or 4 major players in the large
enterprise apps space for a while. Now there are 2. Since Oracle
has been off in development, it's been just SAP rolling out new
additions to functionality. Oracle has been in maintenance mode
with their apps, just keeping their enterprise software going and
making sure they dont screw anything up.

The time is ripe for new and fascinating software functionality.

Time will tell if Larry's bold strategy was worth it. One thing
is sure, he has bet everything on this.

It will be the most interesting experiment in software
acquisitions and probably will be instructive to other companies
looking to follow in Larry's footsteps.

If it succeeds, companies will look to more agressively grow by
acquisitions and if it fails, that will make the strategy a lot
more unattractive.

Either way, it should be fun to watch...




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Onuora Amobi is the CEO of Nnigma Inc. and editor of both
http://www.peoplesoft-planet.com and http://www.Windows-Vista-Update.com 
He writes a monthly article for the website that can be found at
http://www.windows-vista-update.com/Windows-Vista-Update-Editorial-Big-Mouth.html.Windows-Vista-Update.com
 
is the premier Microsoft windows Vista information portal. 
On this site, you can find news, information, tips, new 
features and updates about Windows Vista.



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