Oracle Loses Again

  • Written By: M. Reed
  • Published On: January 2000



Event Summary

"SAP AG has chosen SQL Server 7.0 as its strategic database for the Windows platform. The companies also will cooperate to make the Windows 2000 OS available as a platform choice for customers wishing to implement mySAP.com solutions. Microsoft also announced that it is the first mySAP.com customer to use Windows 2000 for its product implementation of SAP inter-enterprise software solutions. mySAP.com is an open collaborative business environment of personalized solutions on demand that lets organizations of all sizes fully engage employees, customers, and partners to capitalize on the Internet economy.

This announcement extends an October 1999 agreement between SAP AG and Microsoft Europe under which the companies are working to expand acceptance of Windows 2000 and SQL Server 7.0 as a cost-effective, scalable platform for implementations of mySAP.com for end-to-end Internet collaboration. Both companies are investing in technical pre-sales and sales support personnel, skills transfer, and cross training of respective sales forces and consulting organizations.

"The internal adoption by SAP of SQL Server 7.0 is a significant testimonial to the increasing confidence SAP has placed in our database and will help improve all aspects of our joint solutions," says Paul Maritz, Microsoft Developer Group vice president."

Market Impact

On the heels of the defection by SAP to IBM for their strategic database platform, this announcement is bound to hurt Oracle in the marketplace (See TEC News Analysis article: "Oracle gets SAP'ed by IBM" December 8th, 1999)

Although Oracle 8i will continue to be a strategic choice for database platforms, their competition in the ERP market space continues to hurt them. Other ERP and CRM vendors increasingly perceive Oracle as a competitor and not a partner, and this trend is expected to continue. We believe that Oracle will try to reverse the trend, but their strong push into applications software (especially ERP and CRM) will prevent them from succeeding. According to one source, more than 50 percent of new SAP U.S. installations on Windows NT have been on SQL Server.

User Recommendations

Customers evaluating SAP should be very careful evaluating what back-end database is used for the system. The current price war between Oracle and Microsoft may have a bearing on decisions regarding databases. Oracle's current difficulties should provide customers with strong leverage to improve prices in software licensing, maintenance, and support. IBM's DB2 Universal Database and Microsoft's SQL Server 7.0 should also be considered.

 
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