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Oracle Customers Rail About Costs, Services, Maintenance

By CIOinsight  |  Posted 11-23-2010 Print
Oracle customers are displeased with how they are treated, how their licensing agreements work against them and how they pay through the nose for maintenance and support. They were not afraid to air their grievances in a new research study.

Customers with legacy J.D. Edwards and PeopleSoft applications have some big decisions to make about Oracle Fusion in the coming year, and many of them will be looking beyond the enterprise software giant out of feelings of frustration and lockdown, according to a new Computer Economics report titled "Go Forward Strategies for Oracle Application Customers."

Ironically, customers who are most frustrated with Oracle's licensing and support practices contend they will keep with or even invest more with the company. Roughly 58 percent of Oracle clients in this report say they are frustrated; Yet, 37 percent say they are planning to invest more in Oracle products in the next three years.

What choice do some of these companies have? It depends on which applications and technologies you are speaking about, says Frank Scavo, president of Computer Economics, in an interview with CIO Insight sister publication eWEEK.

"Hardware and even databases are easier to migrate, but vendor lockdown for application software is not easy to change," said Scavo in a November 19 phone interview. "The heart of OracleÂ's business is the maintenance business ... Oracle has publicly said it makes 90 percent margins in maintenance."

At issue aren't just the maintenance costs, but also how maintenance is bundled with future upgrades of the software. To get those upgrades, you have to buy maintenance, said Scavo, who made a point of saying that this is not unique to Oracle. Most enterprise software vendors practice this upgrade product strategy.

For more, read the eWeek article Oracle Customers Reveal Angst on Costs, Services, Maintenance.


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