In the world of technology, two years can seem like an eternity. With the speed that DVD replaced VHS, Blackberries replaced PDAs, and MP3s replaced CDs, it’s not surprising that in two year’s time, Forrester Research has flip-flopped its opinion of the two ERP juggernauts’ software lineups.
ERP systems themselves are almost ancient in technology years, which actually have more in common with dog years. Less than 20 years ago, ERP systems burst onto the scene promising to automate your back offices. And, for the most part, they succeeded. According to The Accounts Payable Network benchmark data, a majority of organizations operate ERP systems.
Now that most organizations are running an ERP, the focus has moved to which provider can offer the most compelling applications that enhance the system’s functionality? Both of the ERP elephants in the room – SAP and Oracle – have put their full development and marketing push behind new applications.
Back in 2006, Forrester believed SAP’s future was brighter than Oracle’s. Coming off its acquisition of rival PeopleSoft, Oracle made some pretty big promises about its upcoming Fusion Middleware applications that Forrester wasn’t ready to believe. At the same time, SAP began pushing their Netweaver development platform. Forrester was convinced SAP would hold onto its leading position in the marketplace.
Two years later, Forrester is now calling the race for Oracle. Now that Fusion has become less ambiguous and more ambitious, the researchers believe it has a future. On the other hand, SAP has adopted a new strategy of streamlining ERP packages. The goal is to eliminate business interruptions when installing a new system. Although Forrester believes both companies’ strategies can pay off, they are giving Oracle the edge.
One of the chief reasons organizations delay or choose not to implement a new ERP system is business disruption. With ERP consultants recommending that organizations devote a full year to planning before implementation, the idea that an ERP system can be pre-configured to meet their industry’s needs right out of the box may be pretty compelling and could give SAP the edge.
On the other hand, Oracle’s Fusion Applications are the result of years of acquisitions. In addition to PeopleSoft, Oracle has also purchased JD Edwards, Siebel, and several smaller companies in recent years. The Fusion Applications suite will be a blending of the finer points of each of those systems. This ambitious product suite has been postponed more than once and is currently expected to release in 2010.
It’s another 13 months between today and 2010. Anything could happen in that time. Oracle Fusion could see another delay or SAP’s new strategy could turn out to be the right move at the right time. The point is that no one, not even analysts, is a fortune teller. In this economy, one day’s reality is tomorrow’s ancient history.
For more on the future of the big two ERP companies, check out the following links:
Patrick Harbin is Editor of The Accounts Payable Channel and Assistant Editor of The Accounts Payable Network
