SAP vs. Oracle.

SAP vs. Oracle.

ERP - Enterprise Resource Planning system are basically implemented in over 20 different industries and the total revenue generated by all the ERP companies put together is over $60 billion dollars on the global market. Close to 60% of the pie is shared by the two softwarecompanies SAP and ORACLE. Though they compete on the same market they have completely different strategies.

In Current business Information technology plays an important part. Enterprise Resource Planning system also known as ERP systems were specifically modeled to help companies run their business better. This particular system has several modules which are used by different interconnected departments within the corporation. ERP can be considered as a software version of the Company itself. This is basicallyERP is very important and is priced so high. The company spends from $1 million to $100 million on ERP systems depending on the size of the project. Companies make the decision of staying loyal to one vendor(implementing all the modules from the same vendor) or multiple vendors(implementing each module from different vendors). The latter approach is called Best of Breed System.

Oracle is the second largest player in ERP market, it started in 1977 in United States of America. Oracle on the other hand is well known for its Database systems than ERP systems. Oracle has a customer base of more than 5000 in over 140 countries. Oracle is well known for its strong software support among the competitors, but the company lacks partners and consultants for technical expertise in ERP products.

Thus the major player in ERP market is SAP (Systems, Application, and Products in Data processing), Germany which started in 1972. SAP has as many customers as Oracle in 100 countries. The company has been so successful since it has been investing 80% or their revenue with their alliance partners and 20% of its profit on research. SAP is also known for the number of technical consultants it has. There are also a large number of third party developers who supply add-in programs that can work together with SAP’s products, which makes it more flexible for the customers to implement.

Oracle has been successful in developing products what are easily integrable with other vendor products, enabling them to build a best of breed system. Supply, Demand and Finance are the three main ERP packages for Oracle. The downside of the SAP’s ERP systems is that the SAP products have been priced high for the SMEs to use them. In order to capture the SME(small and middle enterprises), SAP has come up with SAP Business ByDesign.

According to many experts they prefer going for SAP products when they have limited in resources and restrained in time the best solution. Oracle is preferred when the company is distinguished values which would create a competitive edge. However, both provide incredible ERP systems which help many companies to operate more efficiently and effectively these days. Its up to the senior manager to balance all theconstraints for the company’s future.