Actually I believe mid market is a strength for Oracle Apps. Oracle
cannot compete with SAP on functionality, but it is cheaper and can
offer a one-stop solution for companies. I know Oracle used to offer
free database to companies who purchase its applications. That offers
substantial saving to mid-size companies. SAP, BAAN, PSFT cannot say
the same thing. When it comes to support and consulting, ORCL is also
cheaper, yes, even cheaper than PSFT. If the database and application
come from the same vendor, the customer will have no trouble identifying who to contact if something goes wrong. These are all
huge advantages for mid-size companies for whom cost is maybe more
important than functionality. Personally I very much doubt application
growth will slow so dramatically to 5-20% in the second half of 1998.
Y2K may have helped Oracle's growth, but make no mistake about it, Oracle is not just a Y2K company. Companies still need database and
applications well beyond year 2000. Oracle's vertical market will also
pay off big time. There are still major industries where paper is the
way of storing information, health care being one of them. There will
be new useage for database, like storing movie, music. We are not at
the end of the information age and it certainly does not end by Y2K.
Larry said the growth for the remaining of FY98 will be strong. Lane
said in a couple of years ORCL's application business will exceed its
database business. I for one will not argue with that. |
