Larry Lashes Out at SAP - But Keeps Cloud Ambitions Close to His Chest

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The announcement of Oracle results always offers CEO Larry Ellison an opportunity to take popshots at CRM software competitors, and this week was no exception. Though he was considerably more cagey about Oracle’s Cloud ambitions – perhaps not surprising given his disdain for the ‘c-word’.

The announcement of Oracle (read more http://www.mycustomer.com/category/tags/oracle) results always offers CEO Larry Ellison an opportunity to take popshots at CRM software competitors discussed here http://www.mycustomer.com/topic/technology, and this week was no exception. Though he was considerably more cagey about Oracle’s Cloud ambitions – perhaps not surprising given his disdain for the ‘c-word’.

With Oracle's latest set of quarterly results showing applications new license revenues up 21% year on year to hit $477 million, the company are in a particularly bullish mood. And that made for some major swipes at SAP, which Ellison dismissed as out of touch and out of time, read more here http://www.mycustomer.com/topic/technology/oracles-ellison-oracle-v-sap-modernity-v-25-year-old-technology/105946

"SAP is not a diversified company in terms of their application suite. They don’t have a lot of what you are calling edge applications. They don’t have a lot of industry specific applications. Their technology is fraying around the edges. Some of it is our good execution I think and some of it is problems at SAP."

He added: "We are taking advantage of their weakness. And we think we are going to get stronger while they get weaker."

Ellison also poured scorn on SAP's Business ByDesign Cloud apps strategy – while all the time managing to avoid using the dreaded 'c-word' for now. He argues that the low end target audience for Business ByDesign is not a way forward for an enterprise player like SAP. "You can’t make a lot of money selling ERP to companies with less than 100 people. We think that is a strategy that goes nowhere," he says. "Our strategy is not to find all new customers. But to sell more to existing customers.”

Core to that idea of selling more to the existing installed base will be long awaited delivery of the next generation Fusion applications. But will Fusion be positioned as a set of Cloud Computing applications?

Ellison worded his views carefully – but couldn’t resist fitting in another dig at SAP. "One of the important things about our Fusion applications is they are designed not simply to run on-premise which of course they do, but they are also on-demand or if you prefer Cloud-ready," he said. "So we will be delivering those applications both by selling the software directly, the old way of doing it which is still the most popular way. We will be selling the Fusion applications integrated with our hardware, our servers and our storage and our networks and we will be selling it on the Cloud. (It's) all modern service oriented 21st century stuff competing against SAP."

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Neil Davey