So before I get more questions on Oracle possibly buying Accenture and getting back on the road this - week... better to have a blog post out there on the topic...
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First things first - quick thoughts in the video: (if the video doesn’t show up, check here)
No time to watch - here is the one slide update:
(if the slide doesn’t show up, check here)
What’s your POV?
And if you want to read more of my findings on Oracle technology - I suggest:
Find more coverage on the Constellation Research website here and checkout my magazine on Flipboard and my YouTube channel here.
(if the slide doesn’t show up, check here)
Definitively, because
- The Future is Services - We know services are the future - vs. CAPEX style perpetual licenses. Combos of software and human services (aka BPO, more modern BPaaS) have a future, not doubt.
- Accenture can bring cloud load - The idea would be that Accenture can 'persuade' most of its customers to move to Oracle products, and provide the services. Stands and falls with 'client leakage'. But Oracle needs load for its cloud to be competitive.
- The 21st century "IBM" needs services - Ellison wants Oracle to become the IBM of the 21st century - what the IBM of the 20th century had was services. So Accenture is the missing piece.
Never ever, because
- Product vs Services DNA - These are like fire and water - they need each other but never live well together.
- Accenture dilutes Oracle's margin - It's all about P/E ratio, less E means a smaller P... not good for Oracle shareholders, who may not be happy.
- Services under pressure - There is a lot of talk about digital disruption - but a function that has been thoroughly disrupted by software - is system integrator services. Gone are the 1000+ FTE projects, a dozen consultants is a large project these days. So why would Oracle acquire a player in a systematically struggling industry - and one that Oracle disrupts itself with its cloud products?
MyPOV
I would be very surprised if this merger would happen. It’s unlikely that Oracle / Larry Ellison will make the mistake from the 90ies twice – when the integrated product and services Oracle offering feel short in the market when competing with the SAP (product only) and SI combo (back then the Big 7 in case you remember). Basically, the Big 7 influenced customers to implement… where there would be revenue stream for them.
On the flip side one could argue that the market is no longer the same as in the 90ies. Customer want all in one shot, and want it as fast as possible, maybe even need their solution as fast as possible to keep operating. But what has not changed is the stock market: Predictable revenues with predictable margins – and that is so much more attractive with (cloud) software than with cloud related services.
Recent blog posts on Oracle:
Future of Work / HCM / SaaS research:
Also worth a look for the full picture
- Progress Report - Oracle HCM Analyst Summit 2017 - Oracle HCM stronger and stronger - read here
- Event Report - Oracle OpenWorld - the HCM perspective - Almost no news, but wait... - read here.
- First Take - Early Oracle OpenWorld 2016 Keynotes - read here
- Event Preview - Oracle OpenWorld 2016 - What to expect, what to watch for ... will IaaS start Clicking? - read here
- Market Move - Oracle acquires NetSuite - Oddly consolidation means more options for customers - read here
- News Analysis - Oracle Unveils Suite of Breakthrough Services.. or short: Oracle Cloud Machine - read here
- Progress Report - Oracle Cloud - More ready than ever, now needs adoption - read here
- Event Report - Oracle Openworld 2015 - Top 3 Takeaways, Top 3 Positives & Concerns - read here
- News Analysis - Quick Take on all 22 press releases of Oracle OpenWorld Day #1 - #3 - read here
- First Take - Oracle OpenWorld - Day 1 Keynote - Top 3 Takeaways - read here
- Event Preview - Oracle Openworld - watch here
Future of Work / HCM / SaaS research:
- Event Report - Oracle HCM World - Innovation around the Core - read here
- Event Report - Oracle HCM World - Full Steam ahead, a Learning surprise and potential growth challenges - read here
- First Take - Oracle HCM World Day #1 Keynote - off to a good start - read here
- Progress Report - Oracle HCM gathers momentum - now it needs to build on that - read here
- Oracle pushes modern HR - there is more than technology - read here. (Takeaways from the recent HCMWorld conference).
- Why Applications Unlimited is good a good strategy for Oracle customers and Oracle - read here.
Also worth a look for the full picture
- Event Report - Oracle PaaS Event - 6 PaaS Services become available, many more announced - read here
- Progress Report - Oracle Cloud makes progress - but key work remains in the cellar - read here
- News Analysis - Oracle discovers the power of the two socket server - or: A pivot that wasn't one - TCO still rules - read here
- Market Move - Oracle buys Datalogix - moves more into DaaS - read here
- Event Report - Oracle Openworld - Oracle's vision and remaining work become clear - they are both big - read here
- Constellation Research Video Takeaways of Oracle Openworld 2014 - watch here
- Is it all coming together for Oracle in 2014? Read here.
- From the fences - Oracle AR Meeting takeaways - read here (this was the last analyst meeting in spring 2013)
- Takeaways from Oracle CloudWorld LA - read here (this was one of the first cloud world events overall, in January 2013)
And if you want to read more of my findings on Oracle technology - I suggest:
- Progress Report - Good cloud progress at Oracle and a two step program - read here.
- Oracle integrates products to create its Foundation for Cloud Applications - read here.
- Java grows up to the enterprise - read here.
- 1st take - Oracle in memory option for its database - very organic - read here.
- Oracle 12c makes the database elastic - read here.
- How the cloud can make the unlikeliest bedfellows - read here.
- Act I - Oracle and Microsoft partner for the cloud - read here.
- Act II - The cloud changes everything - Oracle and Salesforce.com - read here.
- Act III - The cloud changes everything - Oracle and Netsuite with a touch of Deloitte - read here.
Find more coverage on the Constellation Research website here and checkout my magazine on Flipboard and my YouTube channel here.