Oracle customers reveal main concerns about deal:
• Potential loss of vendor leverage and increased dependency on Oracle
• Questions on strategic intent for platform and software products
• Changes to the culture of Oracle and Sun
Edinburgh, 28th January 2010 - In response to the completion of Oracle’s buyout of Sun Microsystems, which has attracted criticisms for its impact on market competitiveness, Rocela, one of the largest independent Oracle consultancies working with more than 50 Oracle global clients, today urged end users to view the merger as an opportunity and not a threat.
“Don’t let emotions get in the way of the situation and take the deal on its face value” is Martin Mutch, CEO of Rocela’s opinion. He believes that IT directors and CIOs should view this as a chance to build a relationship with Oracle that suits their terms, enabling them to take advantage of the years of expertise the two companies have built up separately. With the closer integration of systems and hardware and focused R&D spend, Oracle, combined with Sun, should be seen as friend, not foe, says Mutch.
He continues: “Oracle is aware of the concerns raised by its customers, but despite having already undertaken more than 60 acquisitions, this is like none other. It takes Oracle out of its comfort zone and having publicly committed to make the acquisition profitable, will have to make changes to ensure the transition goes as well for users. But this will not happen overnight by any stretch, and in the meantime, Oracle and Sun users must take steps to make the most of the situation.”
To achieve this, smart organisations should move to create a strong strategic relationship with Oracle. Rocela has published three top tips to best achieving this goal:
1. Get architecture teams to work as closely to Oracle as possible. In doing so, they can get a much better understanding of the product strategy and use this to their advantage
2. Take the time to understand the Oracle culture, and pay close attention to the shift that will take place thanks to the acquisition
3. Take a critical and detailed view of your current usage and requirements of the software. This will give a good basis for when the time for renegotiations comes. This information is best gathered via software asset management (SAM)
By acting in this way, CIOs can be prepared to respond positively when Oracle presents its new roadmaps. Oracle needs to make the acquisition profitable – Oracle’s customers can turn the acquisition to positively create business value also.