Thursday, January 28, 2010

The Current State of Affairs for Oracle Accelerate

Oracle Accelerate started as a way to deliver on-premise enterprise resource planning (ERP) solutions to midsized organizations with limited budgets but with unlimited aspirations to compete, grow, and be agile. These companies, which Oracle refers to as “gazelles,” were seen as a good fit for an industry-specific package of low-cost applications and services provided by partners, combined with Oracle Business Accelerators (OBAs) for rapid implementation. Since the launch of Oracle Accelerate in early 2007, Oracle has added more than 7,000 midsized applications customers for a total of over 25,000.

Yet, both Oracle and SAP are still regarded as providers for the largest businesses only. In fact, overall, across all of its burgeoning products, Oracle has over 190,000 midsized customers, which are the companies that still have (or had, at the time of the sale) less than $500 million (USD) in revenues. Along similar lines are misperceptions related to SAP (and these are likely a source of frustration for the vendor) due to the often-neglected fact that 65 percent of SAP customers are SMEs too (although, last time I checked, SAP counts the companies with revenues of less than $800 million (USD) as SMEs, which is more “liberal” and “inclusive” than Oracle).

In any case, while 2007 was the launch year for Oracle Accelerate (with the first seven Accelerate solutions unveiled in February 2007 and a solutions factory opened in June 2007), 2008 was the year of building more of everything (i.e., solutions, partners, and customers), whereas 2009 was slated to be the year of achieving critical mass.

To that end, in late September 2009 Oracle announced new capabilities for its Oracle Accelerate program for midsized companies, including new Accelerate solutions and OBAs, new financing options, and more deployment methods. New capabilities of the program are as follows:

* New Oracle Accelerate solutions including business intelligence (BI)/enterprise performance management (EPM), and customer relationship management (CRM) on-demand.
* A new Hewlett-Packard (HP) and Oracle Consulting Accelerate Solution for Industrial Manufacturing.
* Extension of OBA tool sets to include Demantra for advanced demand planning, Agile for product lifecycle management (PLM) solutions, Siebel for CRM, and Oracle Transportation Management (OTM).
* OBAs for Oracle E-Business Suite (EBS) are now available on Sun Microsystems’ 64-bit systems running the Solaris 10 operating system (OS) for eight industries in 20 countries bringing the total to over 280 OBAs available in 35 countries.
* Several deployment options, including hosting by Oracle On Demand, hosting by a third party, and on-premise hosting all with customizable service packages to meet the needs of each customer.

In summary, currently there are more than 300 Oracle Accelerate solutions (including Business Accelerators developed by partners and certified by Oracle) provided by more than 180 partners in over 75 vertical industry sub-segments in nearly 40 countries. Oracle admits that its Accelerate ecosystem had strong but measured growth in 2009, and that 2010 should be marked as the year of “Three R’s: ROI, Readiness, and References.”

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