Oracle has launched a defector programme to tempt SAP customers to switch to
Oracle E-Business Suite, while SAP has hit back announcing that it has poached a
major corporate Oracle user.
Oracle's programme, called Oracle Fusion for SAP (OFF SAP), promises
defectors a licence credit of up to 100 per cent. The company has also started
offering free consultancy services to educate prospective customers about the
migration process, and has unveiled a financing plan.
Advertisement
The scheme primarily targets SAP R/3 customers already considering upgrading
to the latest SAP version. Because users have to re-licence and re-implement
software when they move to the new version, the upgrade opens the door for a
competing offering, the database giant claimed.
SAP R/3 is the previous generation of the vendor's enterprise software. SAP
has said that it will keep supporting the software until 2012. According to
Oracle, only six per cent of SAP's customers have upgraded to the current mySAP
ERP version.
Oracle president Charles Phillips boasted that his company has 94 per cent of
its customers running on the current version of the Oracle E-Business Suite,
crediting this to free upgrades.
"[SAP users] now have a low cost alternative to stop paying for upgrades and
get OFF SAP," he said.
An Oracle spokeswoman told vnunet.com
that the programme is available to SAP users worldwide.
In a announcement on the same day, SAP revealed that it has sold its mySAP
software to luggage manufacturer Samsonite, a former Oracle customer.
Samsonite switched vendors under SAP's Safe Passage programme unveiled at the
beginning of this year. The programme offers a 75 per cent credit for PeopleSoft
and JD Edwards licences for switching. The incentives are limited to customers
in North America.
SAP launched its defector programme shortly after
Oracle finalised the acquisition of PeopleSoft in
January, hoping to capitalise on user uncertainty over support and future
roadmaps.
The enterprise software vendor claimed that Samsonite has joined "a growing
list of companies" that have used the defector programme, but refused to provide
any further details.
Industry analysts generally do not expect that the programmes will make much
difference. The cost of switching enterprise suite vendors is considered too
high to be offset by simple licence credits. Users can, however, use the
programmes as a way to negotiate discounts.
Oracle and SAP are the two largest providers of enterprise application
software in the world. Since Oracle's acquisition of Peoplesoft, the pair have
been engaged in an acrimonious battle for market share.
Keep up to date with the latest products, services and technologies from the world's leading IT companies; IThound.com brings you over 6,000 white papers, case studies and analyst reports.
Do you agree?
Have your say on this article