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Oracle's Dilemma: Applications Unlimited Versus Oracle Fusion Applications

Oracle Customers Face A Choice: Stay With Apps They Have And Miss Out On Innovation Or Make The Painful Switch To Fusion

February 11, 2013

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Why Read This Report

Oracle faces a strategic dilemma, and how it responds to this dilemma will present the CIOs at its clients with some tough choices. Oracle Fusion Applications — Oracle's new generation of enterprise applications, as well as the focus of much Oracle innovation and development — have had low levels of adoption by existing Oracle customers, in part, because Oracle's Applications Unlimited policy has provided them with little incentive to migrate. Oracle's organic revenue growth has slowed over the past year or so as its existing products age, and it has needed acquisitions of leading software-as-a-service (SaaS) vendors like RightNow Technologies and Taleo to bolster its app revenues. Oracle has not wavered in its commitment to continue to support existing applications customers indefinitely; however, the company is clearly now more aggressive in promoting Oracle Fusion Applications and cloud deployment models (including private cloud and SaaS) to its customers. This report examines the Applications Unlimited versus Oracle Fusion Applications quandary Oracle faces, framed by the results of a Forrester survey of Oracle customers and Oracle's recent financial results.

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Table of Contents

  • Something's Happening With Oracle Apps, What It Is Ain't Exactly Clear
  • Applications Unlimited Slows Customer Move To Fusion Applications
  • RECOMMENDATIONS

  • Oracle Clients: Watch For More Pressure To Move To Fusion Applications
  • WHAT IT MEANS

  • It's Make-Or-Break Time For Oracle's Applications Business
  • Supplemental Material
  • Related Research Documents

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