Larry's war: Oracle vs. SAP

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its business beyond database software, where competition and open-source programs are increasing threats.

For another, business applications are a much bigger commitment for an IT buyer than are databases and other underlying technology. Business applications can have an immediate impact on workers and their productivity and are hard to replace once they're in. For that reason, the selection of an applications package can take months or years and often involves the top officers of a company. This gives suppliers considerable influence for years.

"If you really want to capture the hearts and minds of the IT food chain, you have to start talking about applications, not (behind-the-scenes) technology," said Joshua Greenbaum, analyst at Enterprise Applications Consulting.

But as an applications supplier, it helps to be big. SAP, the largest of the suppliers, with $9.7 billion in revenue last year, is forecasting 10 percent to 12 percent growth in software license sales this year. The rest of the market is growing revenue at about 6 percent annually.

That's why Oracle is so bent on bulking up. The company's last great attempt in that regard was with a much ballyhooed redesign of its programs called 11i. But the initial release of the product was buggy, and by the time Oracle worked out the kinks, a global recession put a damper on information technology spending that has yet to fully subside.

Now another redesign is in the works, and this one's even more ambitious. Under the code name Project Fusion, Oracle is combining its own software with programs from PeopleSoft, Retek and a company PeopleSoft had acquired called J.D. Edwards.

It's aiming to release a new product from that effort in 2008 and hopes to blow the competition away with it. In the meantime, SAP and Microsoft, a newer entrant in the market, are working on next-generation versions of competing products that are due out around the same time.

SAP executives are quick to dismiss Oracle's strategy, saying it's likely to get bogged down.

"You don't get more powerful by eating more," SAP Executive Board Member Shai Agassi said. "You get more bloated."

An Oracle representative defended the company's position, saying the acquisitions have strengthened its work force, product set and research capabilities.

And even SAP plans to pick up the pace on acquisitions. Executives say they're looking for small companies with interesting technology SAP doesn't already have, minimizing the chances for indigestion.

Oracle hasn't ruled out more acquisitions either. After all, two of its

[satur123]

I am a big fan of SAP products, so i thend to find then more atractive ( merely a sentimental choice), but i hace to say tha oracle is an amazing company and I have huge respect for their background, The diference in my case is that i have had the chance to work for longger with SAP products, never the lest I found some unoficial voting to pick a favorite jaja if your interested here is the link.

http://www.ibexmatch.com/buscarpost.php?SAP-vs-Oracle&cdpost=117