EXECUTIVES in the SAP camp dismiss Oracle’s move as hollow and smacking of desperation.
Ian Black, managing director SAP NZ, is unconcerned about Oracle’s attempt to woo his customers.
“I don’t think our customers are that silly to be misled by the offer. Companies will be interested to hear what their options are because they want to evaluate their choices, but if they get Off SAP what will they do?” he says.
Black expects customers will investigate the offer but doesn’t see it has having great appeal to companies in this market until Oracle’s product is more tangible.
The company says the melding together of Oracle, Peoplesoft and JD Edwards won’t be complete until 2007.
According to financial analysts at JP Morgan, SAP applications outsell Oracle’s by four to one, based on a 12-month licence basis and doubts the Off SAP programme will have little or any impact on customers.
Black says that of SAP’s 26,000 global customers, less than 20% haven’t migrated from R/3 to either mySAP ERP or mySAP Business Suite and disputes Oracle’s figures.
“We aren’t pressuring people to move until there is a reason to do so. I don’t know where they got that 6% figure from, but then Oracle has been quoting a few statistics that could be misleading.”
SAP introduced its Safe Passage programme three months ago which, according to Black, is getting a lot of interest from non-SAP customers.
He says a key difference is that SAP provides support and maintenance to manage customers transition from Oracle holistically.
Black says it isn’t true that SAP technical upgrades are expensive.
“The reason people aren’t upgrading isn’t because it’s expensive but because their current software is working just fine.”