Executive Summary (This is a document excerpt)

If Oracle's four-headed application strategy — new releases in the next two years for each of its four application product lines — calmed customer concerns about their dead-end PeopleSoft investments, it did little to address Oracle's long-term application future. Oracle's No. 2 application status is only relevant in the broader market if Oracle can establish clear differentiation — and market growth — versus applications giant SAP. Oracle's Java-based Project Fusion could help win share in the still underserved services industries if the company can use its new architecture to deliver more compelling vertical extensions; however, Fusion appears to do little for the rapidly growing midmarket.

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