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Volume 32, Issue 2

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Thursday, 04 April 2019 16:10

Oracle’s Customers Can Benefit If Its Application Maintenance Stream Starts To Dry Up

Oracle customers should renegotiate their commercial relationships with this important vendor, using adoption of Oracle’s SaaS products as an incentive and cancellation of maintenance as a credible threat. Oracle’s SaaS strategy seeks to pull customers forward, but it has also undermined the value of its maintenance offering for its legacy on-premises products. Both factors increase customers’ negotiation leverage.

Oracle is determined to increase adoption of its SaaS products. In its last earnings call, Larry Ellison stated that ERP Cloud is one of two strategic imperatives for Oracle (Oracle’s autonomous database is the other). ERP Cloud comprises various finance, procurement, and governance products and is one of five pillars in its SaaS portfolio (the others are CX, HCN, SCM, and manufacturing). There are several good reasons why you should take a serious look at Oracle’s SaaS portfolio: