03 February 2005 | David Arminas
Purchasers are set to enjoy greater value for their IT buys as Oracle and SAP battle for market share, according an industry analyst.
Nigel Montgomery, European research director at business analysts AMR Research, told SM: "We are unlikely to see a price war, but SAP and Oracle will offer more for the money spent on software."
He added that acquisitions by both companies show they want to corner the business application market.
Oracle cleared regulatory hurdles in December to take over PeopleSoft and JD Edwards, which was acquired by PeopleSoft in 2003.
SAP announced this month that it will take over TomorrowNow, a software maintenance company that supports about 100 firms using SAP, PeopleSoft and JD Edwards products.
"If you are in the early throes of implementing PeopleSoft or JD Edwards software, you will probably get a favourable approach by Oracle to switch," he said.
"SAP, by buying TomorrowNow with its PeopleSoft knowledge, feels it can wean you off PeopleSoft products without too much disruption to your business processes and move you over to their SAP solutions."
One senior IT procurement director currently using Oracle software does not "expect lower prices, just better value for money" as a result of the battle.
Also this month, John Wookey, senior vice-president of applications development at Oracle, announced plans for new versions and upgrades of Oracle, PeopleSoft and JD Edwards products.
The "product roadmap" for Project Fusion, which is due for a full launch in 2008, sets out a schedule for launches of new versions and enhancements of products from Oracle, PeopleSoft and JD Edwards.
"The path to the new successor product, Project Fusion, will be evolutionary," Wookey said.
Oracle will also extend support for JD Edwards EnterpriseOne XE and 8.0 to February 2007 and support XE and PeopleSoft Enterprise to "at least 2013".