Executive Briefings

Will Oracle, SAP Keep Standard Annual Fee Structure for Enterprise Apps?

Oracle and SAP seem to be nearing a point of having to make some hard choices about whether to consider modifying their one-size-fits-all 22 percent annual fees for upgrades and support. Wall Street will boil them in oil if they do because the 90 percent margins on those fees sure make overall earnings look good. But an even bigger risk could be that customers will begin putting the big guys on ice if they don't show some pricing flexibility in today's very different IT market.

Read Full Article

Oracle and SAP seem to be nearing a point of having to make some hard choices about whether to consider modifying their one-size-fits-all 22 percent annual fees for upgrades and support. Wall Street will boil them in oil if they do because the 90 percent margins on those fees sure make overall earnings look good. But an even bigger risk could be that customers will begin putting the big guys on ice if they don't show some pricing flexibility in today's very different IT market.

Read Full Article