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July 25, 2008 10:18 AM PDT

Oracle is grabbing a lead spot in identity management

In the 1990s and early 2000s, Oracle dabbled in the identity space with database access controls and a network directory. But it really wasn't considered a player in this space.

This changed in 2005 when Oracle acquired its way into identity management with the purchase of Oblix and Thor Technologies. Even with these acquisitions, many industry watchers never thought that Oracle could buy its way into the market and weave disparate products into an integrated suite.

Once again, common wisdom was completely wrong. While others struggle or abandon this space, Oracle has vaulted to a leadership position. In fact, my sources tell me they see Oracle in every large deal these days. The fact is that Oracle saw the identity management space as strategic and invested accordingly to become a market leader because:

• Identity management is a business--not an IT--initiative. Back in the 1990s, identity management was all about technology tools to manage user provisioning and security. Now it's about mapping employees and outsiders to business processes, managing user roles, and meeting regulatory compliance mandates. When identity management evolved from a set of IT tools to a business application, deal sizes skyrocketed.

• Identity management is middleware. Oracle wants to own identity middleware just like it wants to own application integration middleware. Identity is the glue between users, applications, and distributed systems.

• Identity management projects can be huge. Identity management is like ERP in that it means years of process definition, role creation, custom development, and systems integration. This is right up Oracle's alley.

Oracle isn't alone in this space. IBM still kills it on product and services. Identity is one of CA's healthiest businesses. Novell has great technology, and Microsoft is a sleeping giant. These guys won't lie down, but Oracle went from nowhere to become a market leader in three years. That won't change in the future.

Jon Oltsik is a senior analyst at the Enterprise Strategy Group.

Jon Oltsik is a senior analyst at the Enterprise Strategy Group.
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Add a Comment (Log in or register) 5 comments
by rexworld July 25, 2008 10:54 AM PDT
I'm a little surprised about this, because when I worked with OID (Oracle Internet Directory) a couple years ago it was a nightmare. OID was the SSO (single sign-on) solution for Oracle Portal, we had to use it. Getting it to play nice with our corporate Active Directory solution was a pain in the neck.
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by hutchike July 25, 2008 12:15 PM PDT
I thought Sun Microsystems was the identity management king? http://www.sun.com/identity
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by jnferree July 29, 2008 11:02 AM PDT
Let's not forget about RSA, Ping and BioMPI
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by identitywatchdog August 2, 2008 1:53 AM PDT
An integrated suite?!

This maybe watch the marketing kings over at Oracle are saying but take some time to sit down with their Identity suite and you'll quickly realise that it is still comprised of individual products that do not play well together. Also realise that more than a couple of the recent Oracle acquisitions, in particular Thor and Bridgestream where evaluated by other big Identity players and turned down, why? They're not best of breed, that's why, Oracle picked up second rate products. The old Thor and Bridgestream products are a nightmare to work with and customers who bought into that message are suffering in their deployments I know for sure.

Oracle are the Goliath of the Identity world, they look big and impressive on the outside but their spending spree has seen some second rate products bundled together with a bunch of KoolAid...
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