Teleconference

Oracle Versus SAP In Enterprise

Applications: Let The Battle Of
Architectures Begin!
John R. Rymer, Paul Hamerman, R “Ray”
Wang
Forrester Research

May 5, 2006. Call in at 12:55 p.m. Eastern Time

Theme

Oracle and SAP are pursuing

different strategies to create
their next-generation apps,
giving real choice to those
who can choose.

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Agenda

• Context: The SOA/DBA generation of applications

• Oracle’s strategy for Fusion Applications
• SAP’s strategy for mySAP based on BPP
• Comparative strengths and weaknesses
• What it means
• Recommendations

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Next-generation architecture strategies — the
road to SOA
2000s: Digital business platforms
Driver: Business process efficiency

1990s: Internet platforms

Driver: Global reach and access

1980s: Client/server platforms

Driver: Front-office efficiency

1970s: Personal computer platforms

Driver: Employee efficiency

1960s: Mainframes and minicomputers

Driver: Back-office efficiency

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November 2005, Forrester Big Idea “Digital Business Architecture: Foundation For Business
Flexibility”

New application requirements are driving platform change

Forrester’s Digital Business Architecture

RFID

BPM

IW SOA

PERVASIVE INTERACTIONS BUSINESS SERVICES

UNIFIED COMMUNICATIONS ORGANIC IT

© 2005, Forrester Research, Inc. Reproduction Prohibited

There are good business and technical reasons
to move your packaged apps to SOA

Business drivers Technology drivers

• Adapt system to processes, • Reduce custom coding
not vice versa through configuration
• Improve usability • Adopt open standards to
reduce integration costs
• Deliver relevant analytics
• Enable end user self-
• Connect to external data sufficiency
and services
• Provide more flexibility to
• Leverage best practices and use best-of-breed and
industry knowledge composite apps

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Both Oracle and SAP are responding with
new generations of their enterprise
applications
• Oracle Fusion Applications
» Superset upgrade target for EBS, Peoplesoft, JD
Edwards, vertical apps in some form
» First modules due in 2008; solid by 2010
• SAP mySAP Suite 2007 release
» First mySAP suite based on new Business Process
Platform
» First modules due this year (2007); solid by 2009

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Oracle’s application strategy: Rapid creation
of a new suite from best-of-breed expertise
• Project Fusion announced in January 2005
• Fusion Applications announced in January 2006
• Transition to Fusion Middleware starts with upcoming
releases of current applications
• Fusion Applications are not a total rewrite.

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March 2006, Tech Choices “Oracle Versus SAP In Enterprise Applications: Let The Battle Of
Architectures Begin!”
Quick Guide To Oracle’s “Fusions”

© 2006, Forrester Research, Inc. Reproduction Prohibited

SAP’s application strategy: Planned
movement to a new architecture
• ESA, SAP’s SOA architecture, announced May 5, 2004
• First ESA version of mySAP scheduled for 2007.
• SAP is the farthest along in moving to SOA.
• Strong vision guides the strategy, but specifics are
unclear.
• First ESA version of MySAP is not a total rewrite.

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March 2006, Tech Choices “Oracle Versus SAP In Enterprise Applications: Let The Battle Of
Architectures Begin!”
Quick Guide To SAP’s Business Process Platform

© 2006, Forrester Research, Inc. Reproduction Prohibited

Oracle and SAP agree on six points

• SOA and composite apps are vital.

• Rewriting of existing code is necessary
• Standards are important (although in different
measures).
• A core repository will allow change and
customization.
• Modeling is more important than coding.
• Analytics must be built in and integrated with
transactions.

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March 2006, Tech Choices “Oracle Versus SAP In Enterprise Applications: Let The Battle Of
Architectures Begin!”

Differences between Oracle And SAP plans to approach the market

© 2006, Forrester Research, Inc. Reproduction Prohibited

March 2006, Tech Choices “Oracle Versus SAP In Enterprise Applications: Let The Battle Of
Architectures Begin!”
Differences between Oracle And SAP next-generation application
architectures

© 2006, Forrester Research, Inc. Reproduction Prohibited

March 2006, Tech Choices “Oracle Versus SAP In Enterprise Applications: Let The Battle Of
Architectures Begin!”
Comparison Of Proprietary Optimizations In Oracle Fusion
Applications And mySAP 2007

© 2006, Forrester Research, Inc. Reproduction Prohibited

Oracle embraces standards more deeply than SAP

Oracle SAP
• Based on J2EE • Based on J2EE and ABAP
• BPEL is native BPM format • BPEL for authoring only
• Adds WS-Security, -Policy, • Supports Web Services
-Reliability to Web Services Basic
Basic
• Slow to market with new
• JMX for management Java standards
• JSR-168 for portlets
• Fast to market with new
Java standards

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March 2006, Tech Choices “Oracle Versus SAP In Enterprise Applications: Let The Battle Of
Architectures Begin!”
Differences between Oracle And SAP partnership and
pricing/packaging strategies

© 2006, Forrester Research, Inc. Reproduction Prohibited

What it means: Time to revisit enterprise apps
requirements and recalibrate strategies
• Both Oracle and SAP are asking prematurely for
deep commitments to their next generations.
• SAP is ahead of Oracle in:
» Next-generation applications release schedule
» Creating the right partner ecosystem
» Market share and revenue growth
• Oracle is ahead of SAP in:
» Middleware breadth and maturity
» Total number of partners

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Customer challenges with the SOA direction

• Expensive and disruptive upgrades

• Lock-in to middleware platforms, fewer apps vendor
choices
• Unproven benefits
• Vendors are overpromising and underdelivering
» Marketing hype moving farther from reality

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Recommendations for mixed shops and new
customers
• Break down the architectures using your
requirements as the filter.
• Identify your alternative paths and vendors.
• Develop skills in BPEL, data hubs, portals, service
development, integrated analytics, and BAM.
• Bring in Fusion Middleware and/or NetWeaver.
• Consolidate/optimize current application
installations.

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Recommendations for committed customers

• Oracle
» Get on Fusion Middleware as quickly as possible.
» Upgrade applications to latest Fusion Middleware
certified release.
• SAP
» Get on NetWeaver as quickly as possible.
» Complete your ROI cycles for Releases 4.6 and 4.7
before moving to mySAP 2007.

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Thank you

John R. Rymer Paul Hamerman

+1 650/581-3857 +1 840/379-0518
jrymer@forrester.com phamerman@forrester.com

R “Ray” Wang
+1 650/581-3808
rwang@forrester.com

www.forrester.com

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Entire contents © 2006 Forrester Research, Inc. All rights reserved.