Oracle slapped over advertising claims

A market research firm has questioned the validity of certain claims by Oracle

Market research firm Stratascope has accused Oracle of misrepresenting its data in a marketing campaign. 

Oracle issued a statement last week claiming: "Research shows Oracle retail customers are 49.7 per cent more profitable and 61.5 per cent more capital efficient than peers." The vendor based its findings on data provided by Stratascope.

"We have no knowledge of the validity of the criteria and methodology [Oracle] used, particularly because several of its claims are based on a set of data that we do not possess," said Stratascope chief executive Bruce Brien.

He demanded that Oracle issue a correction. A spokesman for Oracle declined to comment.

Stratascope is a research firm that focuses on financial and operational benchmarks. It allows software vendors to gain insight into vertical markets and specific customers by identifying areas where a company is trailing behind its peers.

The Oracle claim is another move in its war of words with German rival SAP. 

Both companies are Stratascope customers, although SAP commissions research from the firm whereas Oracle only subscribes to its data and conducts its own studies, Stratascope president Juergen Kuebler told vnunet.com. 

SAP commissioned Stratascope late last year to research the profitability of publicly traded companies. Based on the study, the vendor claimed that companies running SAP software are "32 per cent more profitable" and have "28 per cent more return on capital" than firms that do not use its products.

But Kuebler warned that its data did not prove a link between the increased profitability and the use of SAP's software. "You cannot assume with 100 per cent certainty that all the benefits derived come from software," he said.

The percentages are also less impressive in reality than the picture SAP wants to paint. If non-SAP customers achieve a six per cent profit margin, a 32 per cent increase would indicate a 7.92 per cent profit margin for organisations running SAP.