We believe Oracle will find it difficult to sell Exalytics into SAP’s installed base. Exalytics does not use the standard Oracle database – Oracle 11g. SAP can choose to not provide Exalytics support for its ERP, BI and BW products, effectively locking Exalytics out of its installed base. This implies that to sell Exalytics to an existing SAP customer, Oracle would have to displace SAP BI and BW with Oracle BI products. We note that Oracle has hardly gained shares in the BI market recently. Moreover, customers have invested in building customization, linkages and apps on top of SAP BI and BW products that they already own, and thus are unlikely to switch over.
(Curated by Dennis Moore. Read the complete article here)