Global CIO: Oracle Hammered By SAP For Stifling Customer ChoiceGlobal CIO: Oracle Hammered By SAP For Stifling Customer Choice

Oracle says the all-Oracle stack cures IT complexity and cost, but SAP says that strategy leads to dead-end lock-in and dramatically less innovation.

Bob Evans, Contributor

May 19, 2010

4 Min Read
information logo in a gray background | information

"What matters most to us is the customer relationship," he said, "and understanding our customers' strategy and helping them figure out how we can enable that strategy to be executable. That will include innovation from SAP as well as our partners.

"No one single company has all the R&D, and all the innovation, and all the right business knowledge and strategy to make it all come together for customers," he said. "No one company has that—none."

Earlier, SAP CTO Vishal Sikka also emphasized the primacy of the customer relationship, and how an extensive global ecosystem of the world's top IT companies—including Oracle, by the way, which had a prominent booth at Sapphire—enhances that relationship and generates unique customer value.

Noting that SAP has 100 customers who've been with the company for more than 30 years, Sikka said that for his company, "the customer relationship endures because of choice—customers always prefer choice."

"For customers, it is not a landscape of one—it never is—never, ever—and the best solutions comes from the entire ecosystem, a continuously evolving, living landscape: landscapes of choice and continuity, continuing to evolve without disruption, continuously offering the best."

Sounds like unassailable logic, doesn't it? But I could also make the case that on the basis of pure logic, Phillips makes an equally compelling point about the rather obvious idea that the way to reduce IT cost and complexity is to take the steps that will, well, reduce IT cost and complexity.

"We're taking this new approach about managing because the reason you're spending so much on maintenance is because you have such a complex infrastructure to begin with and all the diversity is part of that cost," Phillips said.

"And trying to maintain all the different flavors and configurations and integrations and customizations—you've created something so complex and customized that it's unique to you—you've become a technology company because what you've created is so unique.

"But you don't want to be unique, not when it comes to your technology architecture—where you want to be unique is in your strategy and the way you configure our technology to support your strategy and not the actual technology underneath it—that's the only way you're gonna lower your cost," he said.

"So we've been preaching standardization, and now we have enough throw-weight with the stack to drive standardization. And the second thing we tell people is, we know you like having 15 suppliers for everything—but there's a cost to that. One way you can lower that maintenance cost is take the products you already own and consolidate—replace what you're using. It makes no sense, for instance, to have a license from three different companies for the same function, and you're paying your support on that. So if you're an Oracle shop—and if you're talking to us, you probably are—let's replace all that stuff. You already own the licenses—let's consolidate." (On Oracle, of course.)

Well, CIOs, if you like to have sharp and clear-cut choices, then it can't get much better than this. Both SAP and Oracle are promising you ways out of the expensive and dangerous infrastructure swamps in which you're stuck, but their roadmaps for those escapes couldn't possibly be more different.

Ready to choose? Let me know at the address below.

RECOMMENDED READING: Global CIO: Oracle's Phillips Says Standardizing On Oracle Is IT Cure Global CIO: How SAP Is Leading The Mobile-Enterprise Revolution Global CIO: Oracle's Larry Ellison Declares War On IBM And SAP Global CIO: SAP's Top 10 Priorities To Become Undisputed #1 Global CIO: Oracle President Phillips Says 22% Annual Fees Great For CIOs Global CIO: How Will Larry Ellison Counter SAP's Mobile Offensive? Global CIO: 10 Things SAP's Co-CEOs Should Focus On Global CIO: Larry Ellison's Nightmare: 10 Ways SAP Can Beat Oracle Global CIO: IBM Sees Surge In Customers' Transformation Projects Global CIO: Larry Ellison's New Acquisition Underscores Vertical Strategy Global CIO: Apple's iPad, Electric Cars, And Runaway CEOs Global CIO: Google CEO Eric Schmidt's Top 10 Reasons Why Mobile Is #1 GlobalCIO Bob Evans is senior VP and director of information's Global CIO unit.

To find out more about Bob Evans, please visit his page.

For more Global CIO perspectives, check out Global CIO,
or write to Bob at [email protected].

Read more about:

20102010

About the Author

Bob Evans

Contributor

Bob Evans is senior VP, communications, for Oracle Corp. He is a former information editor.

Never Miss a Beat: Get a snapshot of the issues affecting the IT industry straight to your inbox.

You May Also Like


More Insights