NPRao
27th February 2010, 01:36
ERP support: How far will Oracle go to protect its golden egg?
Oracle has been suing third-party support providers, which could set a bad precedent for consumers and would-be competitors alike
http://www.infoworld.com/d/applications/erp-support-how-far-will-oracle-go-protect-its-golden-egg-856?page=0,0
Interesting note on page 5:
Oracle is not alone in its lucrative maintenance and support service: SAP, Lawson, Infor, Epicor -- right on down the list of enterprise software vendors. Those vendors can earn roughly 50 percent of total sales for maintenance and support fees, according to the Cowen and Co. research report. Those fees, notes the report, are "a highly reliable, high margin, recurring revenue stream that provides earnings stability and enables margin expansion even if license sales falter."
Oracle has been suing third-party support providers, which could set a bad precedent for consumers and would-be competitors alike
http://www.infoworld.com/d/applications/erp-support-how-far-will-oracle-go-protect-its-golden-egg-856?page=0,0
Interesting note on page 5:
Oracle is not alone in its lucrative maintenance and support service: SAP, Lawson, Infor, Epicor -- right on down the list of enterprise software vendors. Those vendors can earn roughly 50 percent of total sales for maintenance and support fees, according to the Cowen and Co. research report. Those fees, notes the report, are "a highly reliable, high margin, recurring revenue stream that provides earnings stability and enables margin expansion even if license sales falter."