The hottest Oligarchic Competition promotes SAP's

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Oligarchic Competition promotes sap to change its thinking and prepare to compete with Oracle

sap in 2005 once again came to the crossroads, which is also another transformation that SAP has to face after six years

in July, 2005, SAP announced its enterprise service architecture ESA with NetWeaver as the core in the name of the Technological Innovation Conference in China. As a business middleware platform, the research and development of NetWeaver began in 2003, which also surprised people who were impressed by the "stubborn and closed image of SAP" after hearing the news. The openness of NetWeaver's integration of different systems makes people have to believe that SAP has begun to change its software thinking

over the years, SAP's software rules have been known as the golden rule in the enterprise application software industry. However, since 2004, this golden rule has begun to show signs of loosening. Changes in the software industry are quietly emerging. The popularity of business globalization, integration, open source, outsourcing services and middleware has made SAP begin to feel the danger of rule subversion. People's demand for software response speed and personalized functions began to exceed the requirements for software stability and reliability, and the unbearable emotion for SAP's long product release cycle has also spread at the user level

at the same time, Oracle is still continuing its frequent large-scale acquisitions. No one knows how far it will go in the acquisition. The era of "Oligarchic Competition" in the enterprise application software market has come. What's more, Oracle has clearly pointed the spearhead at sap. In SAP's expression, the tension of the city is at a glance

sap must make changes, but it is unclear whether this change will repeat the mistakes of 1999. The Internet technology in 1999 had a huge impact on the global software industry, and sap was not immune from it. At that time, SAP's transformation to Internet was considered to be the largest adjustment in its more than 20 years of history since the release of r/3. In this transformation, sap, together with the company logo, was replaced by an icon with the Internet logo, and the subsequent replacement also confirmed the unsuccessful transformation of sap to the Internet to a certain extent

this time, SAP seems more calm and masters the rhythm of change in its own hands

sap's change route

in the history of sap, the great success of r/3 is a historic breakthrough. Kong Hanning, the current chairman and CEO of sap, said that this was due to SAP's early acquisition of some well-known customers in key markets such as the United States

it was Hasso Plattner, one of the founders of sap and the spiritual leader of sap, who introduced sap into the U.S. market. As early as the late 1980s, prattner found that the American business community was in the midst of extreme loss from losing to the Japanese. When they came to Japan like a pilgrimage and tried to find out the reasons for Toyota's great success, they came to the conclusion that "business process reengineering"

the American business community has quickly set off a frenzy of business process reengineering, and prattner has also quickly captured this message. Sap is going to launch software that can integrate and process business processes. At the same time, mainframe began to decline at this time, turning to client/server architecture. In 1993, SAP r/3 system was fully introduced to the market. The concept of client/server, the graphical interface of unified display, the compatibility of relational database and the software idea of taking business process as the center made r/3 popular as soon as it was launched

this success also directly brought sap to the position of global software giant, and also set off a climax of ERP software. Until 1996, when Internet appeared in front of the public as a revolutionary, people began to feel that ERP was aging and clumsy in information management. Because of its high sensor accuracy (some reaching 1.1 million), it could also test the friction coefficient. It would also cooperate with Hexion and Fraunhofer Engineering Center in this project. The rise of e-commerce software gradually threatened the market position of ERP. SAP also experienced the most difficult period in its history in the next two years, and there was the embarrassment of not having a list in a quarter

American software companies are going to transform to Internet, and prattner, who was then chairman and CEO of sap, also performed an unprecedented major operation on SAP. In this process, SAP began to encounter Oracle in the enterprise application software market. In the Internet wave, Oracle became the leader of Internet based application software with the success of its e-commerce suite, which SAP did not expect

the encounter with Oracle this time also made SAP understand the sudden attack ability of American software companies under new opportunities. For a long time thereafter, neither Plattner nor SAP admitted that they lost to Oracle in e-commerce software technology at that time, which was attributed to the pure market operation of Oracle. It is also at this time that sap and Oracle have entered a hostile state

in 2001, SAP began to return to ERP business with r/3 as the main body. Since then, users who have experienced the Internet wave have gradually expressed dissatisfaction with SAP's complex system implementation and business process reengineering process. In 2003, SAP began to consider the research and development of NetWeaver. According to Simon Dale, vice president of SAP Asia Pacific, the launch of NetWeaver is only a sign of the transition of SAP's products to the next generation architecture - a service-oriented architecture

but the fact is not so simple. Behind this, Oracle's step-by-step pressure may be a more urgent practical pressure

duel with Oracle

as early as September 2004, before the completion of the acquisition of PeopleSoft, Oracle announced that it would become a large and comprehensive software company. The change in the definition of this company is regarded as the biggest change in Oracle over the years. This also means that Oracle's business scope will cover three levels: underlying database, intermediate application platform and application software, which are almost all areas of software in enterprise applications at present

in terms of technology, Oracle Global CEO Larry Ellison has set three development directions for Oracle: Linux, enterprise software, and lattice computing. After the acquisition of PeopleSoft, the intermediate business platform of PeopleSoft with strong integration capabilities makes it possible for Oracle to walk on three legs

at the beginning of 2005, oracle was one step ahead of SAP's NetWeaver release, and announced the "software synthesis Engineering" route mainly for PeopleSoft and j.d.e products. If everything goes well, Oracle will practice a good skill in intermediate integration ability, which is where SAP's weakness lies

after the large-scale application of SAP's ERP system, people increasingly find that there are too many incompatibilities between SAP system and other systems. In the process of enterprise information construction, the incompatibility between systems is equivalent to artificially rebuilding an information island. In the view of many users, "SAP system is equivalent to denying other systems", which is unrealistic in cost accounting and practical application

calls for SAP flexibility and openness have emerged in an endless stream, and Oracle also takes this as a major breakthrough. In fact, Oracle also has enough realistic conditions to complete this role. As a software manufacturer starting from database, Oracle's experience in underlying integration seems to be easier to go to the integration of intermediate business platforms. At the same time, compared with SAP's 30-year precipitation in enterprise application software, Oracle is more flexible. "To form a new software model is to constantly negate and revise the previous software ideas." A person from Oracle China believes that this is a little difficult for SAP

but many years of business experience in the enterprise application market is also SAP's comparative advantage over Oracle, "and this is precious," said a person from SAP China Research Institute

after September 2004, Oracle's operation mode was described as a crisscross matrix. In this model, industry consulting has become a main vertical line running through it. Technical products represented by databases and application products represented by application software are inserted horizontally. Among them, industry consulting ability has become the key to the success of this model, which is exactly Oracle's weakness

SAP's software system has become a model of the combination of business practice and it technology. The industry knowledge accumulated by SAP in the enterprise application software market in the past 30 years is difficult for Oracle to keep up in the short term

in Kong Hanning's view, Oracle's software is still in the data centric stage in enterprise applications, which is not at the same level as SAP's process centric model. However, it is undeniable that Oracle is using the acquisition of industry monograph software companies to make up for this defect, and industry monograph software companies have enough strength to compete with sap in a single industry, both in industry consulting ability and product technology

based on Plattner's understanding of Ellison in rowing, he knew that Ellison was not playing games this time. If Oracle is allowed to go further and further in synthetic engineering, it will be disastrous for SAP. It is extremely urgent to choose the route from the application level to the intermediate business platform and even the underlying database field. In fact, according to Werner Brandt, chief financial officer of sap, SAP plans to shift the key to revenue growth from its core ERP transaction to the analytical synthesis application software generated by partners and ISVs on its NetWeaver platform, which can explain everything

at present, the war of words between sap and oracle on short-term business conditions is more like mutual smoke bombs. The key to the future confrontation lies in the implementation of their routes and the choice of transformation modes

for SAP, it has better popularity than oracle. Behind it, there is a huge SAP system and allies. This group of friendly forces also plays an important role

sap alliance

at the Technological Innovation Conference in July 2005, Christoph reisbeck, senior director of Sun Microsystems' global SAP alliance, highly praised NetWeaver and expressed strong confidence in the prospect of the cooperative cement chemical analysis method gb/t 176 ⑴ 996 between sun and SAP. So far, sun is still one of Oracle's few major partners with close relationships around the world. It shows SAP's good intentions to bring the evaluation information of sun's unintentional additives and the compliance of the total migration volume (only molded products) to the scene

sun Microsystems is one of the original partners of SAP NetWeaver. Sun has been with SAP since NetWeaver entered the R & D stage

as the earliest partner of NetWeaver and the first customer, HP's support for NetWeaver is more specific at the business level. Liuwanchang, the director of the business strategy planning department of China HP Co., Ltd., told that HP has a special team to complete the consulting support for the implementation of SAP system. In NetWeaver, SAP makes use of the expertise of HP system and solutions. In this process, HP appears as a technical supporter

in fact, NetWeaver's technical partners also include Intel. As one of the cooperation achievements, the reality is that more than 70% of the new installation instances of SAP are on Intel's platform

different from SAP's development process on ERP system, NetWeaver's R & D is more like the result of multilateral struggle of multiple manufacturers, which is also one of the information that SAP hopes to transmit to the outside world, which is also open and flexible

before that, the relationship between sap and partners was more in consulting business

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