Founded in 1977 as Software Development Laboratories, Oracle quickly rose to prominence in the ERP market, ranking as the world’s largest database management company with over $100 million in sales only ten years after its establishment. With offerings across software solutions and services alike, it is clear to see how Oracle rapidly grew its market share in the ERP space. In this installment of the vendor overview series, The ERP Advisor will provide an outright synopsis of Oracle.
Oracle has been providing innovative software solutions since its founding in 1977 as Relational Development Laboratories. As a multinational computer technology corporation, Oracle has developed a stronghold in software markets across the globe, making them a household ERP name.
Oracle currently employs over 143,000 people who provide services to over 70 million users, including the Formula 1 champion team, Red Bull Racing. With an extensive product line and network of partner support, it is no wonder so many companies around the world turn to Oracle to automate their business processes.
Oracle’s four main business segments are cloud, license, hardware, and services; however, Oracle is best known for its software products and services. While Oracle has a number of product offerings that the company itself has developed, it has also acquired many solutions over the years to complete its full suite of solutions, such as its small-medium sized ERP acquisition of NetSuite in 2016.
At a general level, Oracle offers database software and technology, cloud-engineered systems, and enterprise software solutions, including Enterprise Resource Planning, Human Capital Management, Customer Relationship Management, Enterprise Performance Management, Transportation Management, Healthcare, Retail and Supply Chain Management software solutions.
Oracle’s most prominent solution is Oracle Cloud Infrastructure (OCI), a network of cloud services that runs a range of enterprise applications. OCI offers a range of functionality, from analytics and BI to compliance and governance features. OCI is one of the first public cloud solutions built specifically for ease of use across applications. The engineering of this system makes for greater reliability, ease of migration and integration, along with advanced flexibility compared to other offerings due to its extension across platforms, especially with Oracle OCI’s partnership with Microsoft Azure.
Oracle Cloud Fusion ERP is Oracle’s ERP offering, allowing for the utilization of artificial intelligence and analytics to increase the efficiency of business operations. Fusion provides financial management, procurement, project management, risk management and compliance, and enterprise performance management. In addition, Oracle Cloud Fusion provides specialized solutions for supply chain manufacturing, customer experience, and human capital management.
While Oracle has made a major transition to the cloud in recent years, it still provides its staple products in hardware and software. These offerings include Java, Oracle Database, MySQL, Linux, on-premises applications, and Exadata. In addition, Oracle’s legacy product offerings are still prominent in the market, boasting a large number of committed users across the board.
Oracle has one of the most extensive legacy customer bases in all of ERP, with four entrenched legacy applications still in operation throughout the world.
Oracle continues to support its Oracle E-Business Suite ERP which includes options across order management, logistics, procurement, manufacturing, financials, asset lifecycle management, and more. In total, it still supports around 100 products and provides resources for product training and information. An advantage of utilizing Oracle E-Business Suite is that customers can make the move to the cloud on their own time, as Oracle continues to enhance its compatibility with Oracle Cloud.
PeopleSoft, acquired by Oracle in 2005, is also an example of legacy applications still being offered and supported by Oracle. PeopleSoft still provides a range of offerings, including human resource management, financial management, supply chain management, customer relationship management, and enterprise performance management. Since Oracle acquired PeopleSoft, it began offering a variety of cloud-based products, such as human capital management, campus solutions, procurement and supplier management, and financial management which expanded Peoplesoft’s traditional on-premises products.
Oracle’s JD Edwards EnterpriseOne (formerly known as JD Edwards OneWorld) is a fully integrated ERP software suite offered on-premises, in a private cloud, in the public cloud, or as a hybrid cloud model targeted at mid-sized businesses. This solution takes advantage of Oracle’s mobile platform. Additionally, given the endurance of the IBM iSeries / AS/400 environments, it’s not unusual to come across JD Edwards World which is still supported today.
Another legacy product is Oracle Hyperion Planning, founded in 1981 and acquired by Oracle in 2007. Hyperion centralizes a business’s planning, budgeting, and forecasting, integrating financial and operational planning processes. Many still utilize this application and continue to implement it as Oracle makes it easier for customers to run it on the cloud, as well as through third-party data centers. Oracle’s newer version of Hyperion is named Oracle Enterprise Performance Management (EPM) which includes Hyperion Planning and many other financial reporting and consolidation tools
The last application in the lineup of prevalent Oracle offerings is Oracle Human Capital Management (HCM), an application designed to connect every human resource process across an enterprise. Originally named Taleo, Oracle has aligned the product with its overall push to the cloud; Oracle HCM is offered as an Oracle Fusion Cloud solution, increasing scalability and ease of use to customers.
Oracle has committed a significant amount of time and resources to develop one of the strongest partnership networks amongst all ERP vendors to deliver high value to its customers. Oracle’s network includes Global Systems Integrator Partners, Developers, Cloud Solution Builders, Independent Software Vendors (ISVs), Cloud Services Partners, Cloud Resellers, License & Hardware Partners, and specialized location partners.
Global Systems Integrator (SI) Partners, also categorized as Global Cloud Partners, deliver specialized solutions during the implementation process, providing expert consultation and software integration. Many have been in business for decades and have developed industry and even micro-vertical expertise. When selecting an Oracle SI, clients should select the partner with the best-fit match to their own needs.
Developers, Cloud Solution Builders, and Independent Software Vendors (ISVs) develop specialized, third-party software solutions that advance the functionality of Oracle’s platform. Customers can extend their platform’s functionality with these specialized solutions.
Resellers, such as Cloud Resellers and License & Hardware Partners, specialize in selling solutions already provided by Oracle in order to recommend these products to users looking to expand their functionality.
Oracle offers location partners, allowing users to find specialized partners within their region. This is significant to users because business is conducted differently across the globe, so solutions should also be specialized to meet the needs of the market.
Oracle’s Cloud Infrastructure has recently developed a partnership with Microsoft Azure to offer their customers a multi-cloud architecture choice. This solution is offered through the secure connection of OCI and Microsoft Azure “over low-latency Oracle Interconnect for Microsoft Azure” while easing access to Oracle databases through Oracle Database Service for Microsoft Azure (Oracle.com, 2022).
Oracle’s maturity in the ERP space, coupled with its innovative solutions and an established partnership network, set Oracle apart from the competition. All factors considered, it is clear why Oracle continues its rapid expansion, acquiring new customers every day.
Oracle’s commitment to innovation is evident, even in their recent acquisition of NetSuite and partnership with Microsoft Azure. Companies with complex operations including diverse geographical distribution, technical accounting needs, high transaction processing requirements, complex ecosystems with integrations to robust best-of-breed applications, and all-in-one capabilities will gravitate to a solution like Oracle Cloud Fusion ERP, leveraging other products like Oracle HCM and Oracle EPM to round out their software ecosystem.
Oracle Cloud Infrastructure is a primary example of software innovation from Oracle, winning them a significant number of deals in the market. OCI specializes in assisting organizations to transition their enterprise applications to the cloud. The program offers cloud resources, tutorials, and enablement tools, empowering users to fully take advantage of their system.
With OCI, Oracle is unique because no other vendor has as many of their own technologies built into their own ERP stack, which gives Oracle ERPs an extreme advantage, especially when it comes to scalability and cyber security protection.
Oracle is one of only a handful of ERP vendors capable of servicing the largest organizations on the planet from early-stage enterprises to nonprofits. Oracle’s sheer size, name recognition, and revenues, a result of their product innovation, security, feature functionality, and ability to handle the robust needs of multi-national operations, have cemented their vaulted position in the ERP market for the foreseeable future.