Technology

Will Oracle Cloud Infrastructure Dethrone SAP as world’s #1 ERP Vendor? 

Cloud services have become an almost inseparable part of companies’ organizational scheme; whether financially, operationally or spatially – the cloud has forever revolutionized IT systems. If in 2018 the cloud computing market size was worth $272 billion, in 2023 it is expected to experience a 18% growth – making it a $623.3 billion industry. As technology develops at a breakneck pace, so do companies providing data management and storage solutions. SAP is currently without a doubt, the world’s leading supplier of On Premises ERP applications. It appears that in 2020 alone, the company will have had a 10% growth in its net worth. 

However, according to a bold analysis by Cloud Evangelist and IT Strategist Ghulam Mustafa, Oracle’s Cloud ERP market share “is about 95% and Oracle booming cloud business is starting to peel away huge SAP customers”. It appears that SAP’s intention was to move its customers to a Cloud platform by 2025, yet Oracle is currently attempting to turn SAP’s fixed transition in its favor. SAP, as Mustafa asserts, “does some hosting, but they don’t have a true cloud system” – something that Oracle can in fact offer its clients. 

Ghulam Mustafa is an accomplished cloud evangelist, focused on assisting customers in digital transformation and cloud adoption for SaaS/PaaS/IaaS. He is currently serving as the Director Customer Success at Oracle Malaysia. He has twenty years of experience driving the development and execution of national, regional, and global high growth Public/Private Sector IT strategies, implementation projects, product enhancements, competitive intelligence, and deal support.

Though SAP ERP’s main focus is to offer a plan designed to integrate functional business processes (sales, distribution, finances, etc.), Oracle is rather a database management system. Oracle’s functionality lies in its ability to manage data in enterprises. While both companies are currently offering ERP solutions, several studies have shown the two major vendors differ from one another. According to a recent comparison between the two, it appears that Oracle, has several disadvantages that might become crucial in its dethroning SAP’s ERP solutions. 

First and foremost, Oracle’s system scores slightly better when it comes to financial management capabilities; offering companies a more reliable accounting system. However, when it comes to budgeting, Oracle’s system is the unequivocal winner. Oracle’s ERP solution offers a designated tool that handles any business’ budgeting needs. Last but not least (which might also be an important component to Oracle’s rising success) is the issue of pricing. It seems that Oracle has significantly advanced pricing tools, that might make all the difference upon choosing an ERP system. Though the companies’ have a fundamentally different system, when it comes to ERP solutions, Oracle is currently on the upper hand. 

In a different overview of the two systems, Oracle is listed to have a number of features that SAP seems to lack such as; financial planning and analysis, risk management, revenue recognition, project planning and execution, enterprise performance management, and many more. Another point to Oracle’s favor, is that while SAP supports just English, Oracle’s ERP system supports 13 languages, which naturally means it has the potential to appeal and be used by companies all over the world. 

But what does the future hold for Oracle? With its shares up 17% since the beginning of 2019, and a 1.7% revenue growth in the first quarter of the 2020 fiscal year alone; things are looking up for the Cloud Infrastructure company. As it expands its reach and has recently chosen to emphasize its growth on Cloud applications, Oracle never ceases to surprise and exceed all expectations. This data along with Mustafa’s thorough understanding and expertise of the system, bring him to safely say that “Oracle is seeing some of SAP’s larger – not the very largest customers, but some of the their medium-large companies – to choose Oracle”. With these groundbreaking observations, it is possible to assume that when it comes to ERP, Oracle will soon be the indisputable #1 vendor. 

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