Bangkok--Dec 14--Aziam Burson-Marsteller
SAP Users Challenged by Total Cost of Ownership, Upgrade Complexity & Need for Improved Agility
Oracle is accelerating the OFFSAP (Oracle Fusion For SAP) initiative in Asia Pacific, starting with an outreach program to organizations that use old versions of SAP and that have not upgraded to mySAP ERP applications This program has contributed to an in-depth market assessment of the Oracle, PeopleSoft, JD Edwards and SAP installed bases that Oracle Asia Pacific has undertaken to understand the factors driving IT adoption in the region over the next 12 months. Highlights from the outreach:
- More than 100 users contacted have requested a meeting with Oracle
- More than 150 users contacted have requested for additional information and follow-up from Oracle
- More than 50% of organizations contacted are on 4.6c or earlier
- Less than 10% of organizations contacted have upgraded to the latest version of SAP (mySAP)
- Key areas of concern cited by contacted customers were: high ownership costs, complexity of upgrades, availability of on-going support and lack of business agility
The War On Complexity
Findings from the outreach affirm the growing interest among SAP users in standards-based applications. They are considering alternatives to the costly and complex process of maintaining, upgrading or re-implementing their legacy systems, and to improve the overall quality of business information through effective integration and adaptive business applications.
According to a leading analyst firm, only 6% of SAP’s customers have upgraded to mySAP ERP applications compared with 94% of Oracle customers that are running the latest version of Oracle E-Business Suite.
Similarly, independent research found that the cost of running Oracle’s E-Business Suite is 48% lower than running SAP, which utilises proprietary technologies such as ABAP, and ongoing software maintenance for SAP is 71% more expensive than Oracle.
“We’ve heard directly from SAP users and their response to our outreach has been positive,” said Craig Jones, Vice President, Applications, Oracle Asia Pacific. “We are now applying the ‘full weight’ of Oracle to address their concerns centred around the increasing costs and risks, coupled with the complexity of integrating, maintaining and upgrading their legacy systems.”
Globally, customers continue to migrate to or select Oracle to take advantage of Oracle’s open, flexible, standards-based applications, which enable a migration path to next generation service-oriented architecture.
Oracle Accelerates OFFSAP Campaign in Asia Pacific
As part of the global OFFSAP program, which was announced in August 2005, Oracle Asia Pacific is accelerating the roll-out of this initiative and has mapped Asia Pacific customers to its go-to-market model. Many of the SAP customers are also users of Oracle, PeopleSoft and JD Edwards.
To address the needs of SAP customers that are currently constrained by the high costs associated with upgrading their existing systems, the OFFSAP program offers:
- Up to 100% license credit on sunk cost in SAP licenses
- A two-day complimentary SAP-to-Oracle Applications Migration Workshop
- A two-year deferred payment with no payments or interest for six months
Reinforcing ‘Intimacy’ With Expanding Installed Base
Oracle continues to step up its interaction with its expanding applications customer base in Asia Pacific — which has more than doubled to more than 4,000 over the past 12 months following the PeopleSoft and Retek acquisitions.
“Oracle customers have evolved with us for nearly three decades across multiple generations of technology,” said Jones. “As a result, 94% of our Oracle E-Business Suite customers are running on the latest applications release and gaining significant business value today. We continue to invest and roll-out significant programs — such as the industry’s only Lifetime Support Policy — and clear product roadmaps as parts of our on-going push for industry leadership. This means customers not only have the best products to run their business, they enjoy unrivalled product support, and rights to future releases at no additional cost.”
Independent industry organizations and analyst firms reinforce Oracle’s positive impact
Findings and recognition from independent industry organizations and analyst firms continue to reinforce the strides that Oracle is making by focusing on innovation, customer success, and excellence in execution. Some of the recent citations include:
Forrester Wave: Enterprise Applications Software Licensing: Complexity (Q4 '05) - Oracle is recognized as a leader in Applications Software Licensing by creating the right balance between capturing the complexity of business requirements and the flexibility in software lifecycle ownership policies.
Forrester Wave: Enterprise Service Bus, Q4 2005 (November 15, 2005) - Oracle is recognised as a leader for integration. Oracle received the highest scores for Comprehensive Enterprise Service Bus (ESB) Suites market presence and current offering that provides superior support for building a service-oriented architecture.
Service & Support Professionals Association (SSPA) Awards, a leading industry organization for IT support professionals - Oracle received three SSPA 2005 Software Technical Assistance Recognition (STAR) Awards - including the prestigious Life Time Achievement Award - for delivering first-class support services and a superior ownership experience for its customers.
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