Oracle and's love-fest: The ripple effects

The companies' partnership has implications for Database 12c, rival vendors like Workday and both Oracle and 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 "a legacy system in world record time," he wrote.

Concern for customers?

Oracle and'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.

" 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 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 always ran Oracle's database, Wang added.

But one customer of both 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 CRM and Oracle for financials. "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 with its on-premises Oracle system but "we want to do more," he said.

Therefore, a standard integration between 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."

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