Users should get ready now for next-generation Oracle and SAP upgrades
By Staff -- Manufacturing Business Technology, 6/1/2006 12:00:00 AM
Even though the next generation of enterprise applications from SAP and Oracle will not be ready until 2007 and 2008, respectively, potential users should start preparing for the upgrade now, say analysts at Forrester Research, Cambridge, Mass.
Both systems will incorporate service-oriented architecture (SOA) and business-process management capability, and the changes will be at the architecture layer, forcing customers to make some hard choices, says Forrester VP John R. Rymer.
The starkest differences between Oracle's Fusion Applications and SAP's mySAP 2007 are at the point where the two companies have optimized their systems—Oracle at the database, and SAP on its middleware.
The result? Fusion users will be locked into the Oracle database, but can use Fusion or any other J2EE middleware. MySAP 2007 users will need NetWeaver middleware, but can use any of the most popular databases, including Oracle's.
The different optimization points complicate the choice of system.
"Optimization is where they lock you in," says Rymer. "It constrains your choices. [The Oracle database] is a fine product, but there are a lot of customers using DB2. On the SAP side, the proprietary technology is at the user interface. If my choice of interface is [IBM] WebSphere or [Microsoft] SharePoint, I'm stuck."
The choice will be simpler for companies that have committed to one system or the other. "Companies that are pretty much Oracle shops can grow their way toward SOA and probably won't leave," says Rymer. "SAP users will turn to SAP because their manufacturing systems are probably dependent on it. But if you have a mixed environment—running SAP financials and J.D. Edwards for manufacturing—which are you going to use?"
Rymer suggests that companies looking for packaged applications should consider SAP first; those with more customization needs and a variety of applications requiring integration should look to Oracle.
Ray Wang, a senior analyst at Forrester, says customers should begin their research now. "They need to get going, get into user groups," he says. "They have to understand what the implications are for their technology and buying plans."
SAP declined to comment on the Forrester report. Meanwhile, Oracle says it has plans in place to ease the transition for its customers.
"Responding to customer feedback, we created the Superior Ownership Experience—a program based on best practices for upgrades and migrations," says Jesper Andersen, Oracle senior VP, application strategy, "This will give customers valuable support to ease the path to Fusion."
Even so, users also should be prepared for a tough upgrade journey. "One concern we have is that both companies are underplaying how difficult this is going to be for customers," concludes Andersen.
