Oracle and Salesforce.com's love-fest: The ripple effects

The companies' partnership has implications for Database 12c, rival vendors like Workday and both Oracle and Salesforce.com customers

By , IDG News Service |  Software

"Now that SFDC and Oracle are no longer enemies, we aren't convinced that WDAY should still consider CRM a friend," Cowen and Company analyst Peter Goldmacher said in a research note. "It shouldn't come as much of a surprise if Oracle and SFDC elevate the partnership beyond formalized product integration in the coming quarters. Workday needs to control its own destiny."

To that end, "we think Workday has to reconsider creating its own CRM product," along with LinkedIn, Goldmacher added. A next-generation CRM application from those companies could make Salesforce.com "a legacy system in world record time," he wrote.

Concern for customers?

Oracle and Salesforce.com's plan to integrate their software applications will be good for customers, since packaged and supported integrations will be lower-cost than expensive custom development projects, according to Ellison.

"Salesforce.com is a big company now," Ellison said on the call. "Customers expect us to work together professionally toward the benefit of those customers."

But for whatever good comes of that, other damage has been done, according to analyst Ray Wang , CEO of Constellation Research. "Most customers we have spoken to feel betrayed by Marc," Wang said. "They bought into the Salesforce.com religion of the past. This was a mantra of in your face, no software, no legacy IT and trailblazing the future."

The expansive deal announced this week "took that coolness away," even though Salesforce.com always ran Oracle's database, Wang added.

But one customer of both Salesforce.com and Oracle expressed positivity toward the companies' new relationship.

"It's a super-big win for us," said Dave Hansen, CEO of security vendor SafeNet, which uses Salesforce.com CRM and Oracle for financials. Salesforce.com "is by far the leader" in CRM and is probably never going to move deeply into financials, where Oracle is especially strong, Hansen added.

SafeNet has been working to integrate Salesforce.com with its on-premises Oracle system but "we want to do more," he said.

Therefore, a standard integration between Salesforce.com CRM and Oracle financials "would be a really powerful thing," Hansen added. "That's where I think this [partnership] is going to be really good."

NetSuite By Design?

Join us:
Facebook

Twitter

Pinterest

Tumblr

LinkedIn

Google+

Answers - Powered by ITworld

ITworld Answers helps you solve problems and share expertise. Ask a question or take a crack at answering the new questions below.

Ask a Question
randomness