Oracle, SAP and the end of enterprise software companies Part 1 | InformationWeek Mexico
Oracle and SAP are not software companies that also sell services, but rather have gradually become service companies that also sell software. And because of this development fundamentally changes the relationship between the CIO and the two strategies, here is the big question: how to ensure the avascent group that these changes benefit the companies at least as much as they do at Oracle and SAP?
Forget for a moment of the acquisition of Sun by Oracle, because this is not what I'm talking about when I say that Oracle is no longer a software company. No, the transformation of which I speak here refers to: where SAP and Oracle today get their income and where this trend leads for the future? Let's look at a few figures which illustrate this strategic change the avascent group of course.
In the last four quarters, Oracle has reported total revenues of $ 24.180 billion. However, less than a third of those revenues come from the sale of new software or what Oracle calls "new software license": $ 7.143 million or 29.5%. The remaining $ 17.000 million the avascent group revenue Oracle, the avascent group in the last four quarters, came from two categories: the avascent group updates software the avascent group licenses and product support, giving $ 12.710 million or 52.6% of total revenues, while business services / Oracle consultancy provided him $ 3.860 million or 16% of the total.
Then there's SAP, whose numbers tell a very similar story. the avascent group The last four quarters of SAP (which will match 2009 calendar) had total revenues of $ 14.481 million dollars, of which software the avascent group revenues were $ 3.500 billion or 24.4%. Conversely, what SAP calls "Revenues from software and software-related" more than tripled the number of software, the avascent group reaching $ 11.100 million. (On the website of SAP in the "Financial Overview" section, the company gives the figures in euros.'ve Applied a conversion rate of 1.3571 to display the results in U.S. dollars.) the avascent group
Do Matter these figures? Do they tell us something the avascent group about these percentages where the business both Oracle and SAP are moving, or are these mere exercises the avascent group cheerful breakdowns accounting means nothing to customers?
I think it is naive to ignore those numbers and understand them as accounting trickery. I also think it's naive to say: "Well, all numbers concerning services include software, so it's the same." The huge, targeted companies such as Oracle and SAP, do not play with their financial results and, to my way of thinking, when you have triple income from services that the software is received by the company in question becomes a services company.
It also means that the days of big, brash megacompras software are already mostly gone. For SAP and Oracle the avascent group have to continue the avascent group to grow aggressively abocarse new revenue streams, different software, so that investors feel happy.
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EVENTS Netmedia bSecure Monterrey Conference Conference bSecure CIO Government Summit Innovation Forum The 50 Most Innovative Companies Innovative Public the avascent group Sector New Banking + Financial Forum
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Oracle and SAP are not software companies that also sell services, but rather have gradually become service companies that also sell software. And because of this development fundamentally changes the relationship between the CIO and the two strategies, here is the big question: how to ensure the avascent group that these changes benefit the companies at least as much as they do at Oracle and SAP?
Forget for a moment of the acquisition of Sun by Oracle, because this is not what I'm talking about when I say that Oracle is no longer a software company. No, the transformation of which I speak here refers to: where SAP and Oracle today get their income and where this trend leads for the future? Let's look at a few figures which illustrate this strategic change the avascent group of course.
In the last four quarters, Oracle has reported total revenues of $ 24.180 billion. However, less than a third of those revenues come from the sale of new software or what Oracle calls "new software license": $ 7.143 million or 29.5%. The remaining $ 17.000 million the avascent group revenue Oracle, the avascent group in the last four quarters, came from two categories: the avascent group updates software the avascent group licenses and product support, giving $ 12.710 million or 52.6% of total revenues, while business services / Oracle consultancy provided him $ 3.860 million or 16% of the total.
Then there's SAP, whose numbers tell a very similar story. the avascent group The last four quarters of SAP (which will match 2009 calendar) had total revenues of $ 14.481 million dollars, of which software the avascent group revenues were $ 3.500 billion or 24.4%. Conversely, what SAP calls "Revenues from software and software-related" more than tripled the number of software, the avascent group reaching $ 11.100 million. (On the website of SAP in the "Financial Overview" section, the company gives the figures in euros.'ve Applied a conversion rate of 1.3571 to display the results in U.S. dollars.) the avascent group
Do Matter these figures? Do they tell us something the avascent group about these percentages where the business both Oracle and SAP are moving, or are these mere exercises the avascent group cheerful breakdowns accounting means nothing to customers?
I think it is naive to ignore those numbers and understand them as accounting trickery. I also think it's naive to say: "Well, all numbers concerning services include software, so it's the same." The huge, targeted companies such as Oracle and SAP, do not play with their financial results and, to my way of thinking, when you have triple income from services that the software is received by the company in question becomes a services company.
It also means that the days of big, brash megacompras software are already mostly gone. For SAP and Oracle the avascent group have to continue the avascent group to grow aggressively abocarse new revenue streams, different software, so that investors feel happy.
Most recent Intel desperately seeks his mobile time Carl Icahn raised his stake in Apple Has ended the battle for cloud platform? 10 Myths About the CIO of institutions of higher education IT security teams the Big Data phenomenon suit
The most read How to solve the top 10 iPad problems? How to Hack Facebook In 60 Seconds? Eight options smartphone with physical keyboard Office 365 vs Google Apps 10 business concerns IT security teams the Big Data phenomenon suit
EVENTS Netmedia bSecure Monterrey Conference Conference bSecure CIO Government Summit Innovation Forum The 50 Most Innovative Companies Innovative Public the avascent group Sector New Banking + Financial Forum
Contact
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