Oracle has cut the price of its e-business software suite as it tries to drum up business, but analysts warn that deployment and ongoing costs are more important than upfront bargains.
The database giant has made the reductions by reducing the minimum number of licences that firms need to buy, and removing the $250,000 (£160,000) entry price, effective immediately.
The Oracle 11i E-business Suite includes elements such as procurement, order management and customer relationship management modules.
But firms are unlikely to be impressed by the price cuts, according to Mike Davis, senior research analyst at Butler Group.
"The E-business Suite is a long-term investment. Deployment and ongoing costs mean that cutting upfront costs are not a substantial part of the total cost of ownership," he said.
With buyers currently able to negotiate big discounts on any software purchases, removing price barriers and licensing limits is likely to stimulate interest in Oracle without necessarily convincing firms to buy, explained Davis.
"Oracle's e-business applications are perceived as being complex to implement and needing highly skilled staff," he said.
The analyst added that by promoting its Master Certificate qualifications as enabling holders to command higher salaries, Oracle is in danger of reinforcing those perceptions.
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