Trends Report

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 11th, 2013
With contributors:
John Rymer , Christopher Mines , Joanna Clark , Jamie Warner

Summary

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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With
John Rymer
Christopher Mines
Joanna Clark
and Jamie Warner