Re: Cloud takes a bite out of SAP/Oracle Jobs?
@ D. Henschen
While I think demand for Oracle and SAP skills is probably flat at present, I disagree with your market share assertion. There are two primary markets for most of the cloud based apps. The first is small and medium sized businesses (SMBs). As these businesses grow out of Quickbooks, Peachtree Accouting and the like, they are tending to purchase cloud based apps like Intacct, NetSuite, Workday, etc. In most cases these SMBs are not large enough or complex enough to consider an Oracle or SAP solution....these solutions are just overkill for them. Neither Oracle or SAP have been particularly strong or focused in this SMB space in the past. This is a place where they are losing potential market share (assuming they want to play in this market), but are not losing existing market share. The second area are functions in larger companies like sales or HR that refuse to follow the corporate standards or have some unique, unsupported need. Cloud apps vendors play to this market because the apps can be used without IT involvement and without corporate approval. They also tend not to integrate with other corporate apps and they are certainly not replacing core Oracle or SAP installs in these situations. As before, its debatable whether this is taking market share or not. I would say its more of a market being created where one did not exist in the past and what we may find in a few years is that the cloud apps get replaced once the core ERP/CRM app implementation efforts catch up and can roll in these rebel or unsupported business functions.
I have challenged on this before for someone to show the proof that larger companies are really scraping their core ERP/CRM installs and replacing the technology with cloud apps. I just don't think the business case exists. And these companies are large enough that they can get the benefits of virtualization within their own data centers and using their own staff. They don't have to swap out apps to do it.
What is happening with cloud apps in the market place is much more complicated than most reports spell out. If people are going to comment on this, they need to stop making generic, blanket statements that are just not true and provide a proper analysis that gets to the real facts and to what is really happening in the market place.