Oracle Powers 69% of World's Top Electronic Commerce Web Sites
Collaborative Research Survey Reveals Back End Integration and Data Warehousing Capabilities Top Issues for Leading Sites
October 7, 1998 08:00 AM
LOS ALTOS, Calif., Oct. 7 /PRNewswire/ -- 69% of the world's top Web sites are using Oracle technology, and a staggering 70% of the remaining non-Oracle sites plan to evaluate Oracle products within the next six months. After Oracle's 69% share of powering the top sites, 12% used ad hoc back ends, 9% used Microsoft SQL, 6% used Informix, 3% DB2 and 3% Lotus.
These are just two of the findings revealed in an independent survey sponsored by Oracle Corp. and conducted by Los Altos, Calif.-based Collaborative Research (www.collaborativeresearch.com). The report, conducted in February 1998, surveyed 33 best-of-breed electronic commerce Web sites, acknowledged by analysts, peers, and consumers as being best in their class. Collaborative Marketing conducted in-depth interviews with the companies' management to measure the current situation and future direction of electronic commerce, including how they developed their sites, how they maintained them and how they planned to develop them in the future.
Other key findings of the report are that 85% of these top sites cited back end integration as their greatest development challenge to date, most commonly the integration of databases to generate dynamic HTML pages. 70% of the sites already do this, while the integration of ERP/ERM or EDI systems revealed to be the second most common integration issue. 91% of electronic commerce sites currently do or plan to integrate ERP/ERM or EDI systems, allowing real time inventory and billing checks by customers and more efficient order fulfillment.
Collaborative Research used two central criteria for the inclusion of Web sites in the study: Volume, including hits, traffic, transaction volume and dollars transacted; and leadership in the industry, as in recognized by the trade press and peer electronic commerce Web sites. Surveyed Web sites include: 1-800-FLOWERS, 3Com, Adaptec, Amazon.com, American Express, CD Now, Cisco, Computer Super Store, Disney Online, Egghead.com, Excite, Fast Parts, FedEx, First Auction, Fruit of the Loom, GE TPN Mart, Gulfstream, Home Arts, Ingram Micro, Intuit (Quicken.com), JC Penny, Lands End, Microwarehouse, Music Blvd, Office Depot, PC Mall, Peapod, REI, Starwave, Ticketmaster, Virtual Vineyards, Wells Fargo Online, and Yahoo!.
The greatest future challenge, according to 61% of the sites, will be the integration of data warehousing solutions into electronic commerce sites and their integration into interactive marketing programs that reach from "brick and mortar" stores to Web sites. Through the advanced aggregation of information and customer statistics that data warehousing allows, database-driven pricing engines can provide specific customers with discounts and promotions, based on their purchasing habits.
How much did best-of-breed companies spend on their sites? 15% spent under $500,000, 33% spent $500,000 to $2.5m and 52% spent over $2.5m, reflecting the substantial investments clearly being made in their sites. Of those development costs, the lion's share went towards the integration of electronic commerce functionalities into legacy back end systems. On average, the systems integration costs comprised 2/3 of the site's total development costs.
"Back end integration is the most critical site development problem, particularly as the focus of electronic commerce shifts from front end flash to back end functionality," comments Scott Collison, a senior research analyst at Collaborative Research. "Talk to best-of-breed electronic commerce site management teams and the conversation turns to the importance of databases and database-driven applications that run their sites."
"Instead of simply attracting new customers and providing additional buying channels, sites of the future will exploit the integration of back office systems with the advanced personalization features provided by data warehousing solutions," comments Steve Levine, senior director of Oracle's electronic commerce product marketing. "The battle for the storefront has largely been won. The goal now is to put more service behind these front ends and in this respect Oracle is perfectly positioned to drive electronic commerce in the future. Clearly the strength of the underlying database is key, together with our ERP capabilities and our specialist electronic commerce consulting expertise."
Collaborative Research is the market research division of Collaborative Marketing, the Los Altos, Calif.-based Internet marketing company. Collaborative Research focuses on key emerging Internet technologies and markets, and produces multi-client analysis, publishes in-depth reports, and sponsors industry conferences. Collaborative Marketing offers market research and strategic consulting services on rapidly growing, emerging Internet markets. For more information call 650-949-4882 x113 or visit www.collaborativeresearch.com.
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SOURCE Oracle Corp.
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