After a few days, let's see if I remember what I was
going to write about. So
I've talked about the switch side and the application side of call
center
products. Where does Oracle fit into this market? First let's look at
what I
consider to be Oracle's four main profit centers, from what I've been
able to
gather by osmosis at my stay there.
Biggest division is server technologies. The guys that write the
database
software in C (or C++) and the other "database level" technologies like
Java
support (called Aurora? Or was that another project. Too many code
names).
A great big chunk of our revenue comes from direct sales of database
licenses.
Unfortunately not the biggest profit center because a great big chunk
of people
costs is also spent here.
Our biggest profit center is actually consultation. Dollar for dollar
we make
more revenue per dollar spent than the other three divisions. This is
probably
true for just about any company, which makes you realize why so much
business
software is not easy to use. Well, business software is very
complicated, but
we could make it quite a bit easier to use if we wanted to spend a
considerable
effort into making it that way.
Enterprise Resource Management is the elder of the two applications
divisions.
ERP covers Human Resources, Accounts Payable, Accounts Receivable, and
a host
of other business apps. Basically any application where the user
doesn't
directly interface with a customer is under the purview of ERP. And
although in
AP and AR applications you can have agents talking to customers, those
agents
are also more highly trained than standard customer interfacing agents,
and in
general talking to customers is not their primary job function.
This leaves applications where agents primarily spend their time
talking to
customers. The Customer Relationship Management division is responsible
for
these apps, which range from Customer Support to Collections to
Telesales. CRM
is the newest division, only a couple of years old. Although it is
actually
making revenue, expenses still outweigh our revenues, so we're the only
major
profit sink in Oracle. On the other hand, CRM has the greatest growth
potential
for the next few years at least.
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Other than our kick-ass database and relatively
competent consulting arm,
Oracle's divisions manage to put out competitive but not awe-inspiring
products.
Point for point, ERP applications sometimes are better than the
competition,
but usually have less features. Same applies to CRM applications only
moreso.
How do we then keep selling our ERP and CRM solutions? Three factors: a
great
and aggressive sales arm (by aggressive I mean they lie to make a
sale), a
wide range of products that cover a huge number of applications, and a
tight
integration among those products.
What does this mean? It means a business can pretty much stick with
Oracle
products to run their business. Consistent user interface, no
integration
hassles and easier support, and knowing that the company whose products
you're
using is going to be around for a long while. It's easier to train on
and there
are lots of Oracle professionals in the job market. The natural
interoperability
we build into our products is a great advantage. No one else has
products that
span ERP and CRM spaces, so that means businesses that use those
products have
to write their own interoperability to other products that fill in the
gaps.
That integration will never be as tight as what we offer (note that
this is
the same kind of tactics Microsoft uses to gain market dominance,
without the
practice of subverting standards or making sure other products don't
work with
our OS -- or database in this case).
So that's what Oracle provides in the call center space. Not best of
class
products, although in most applications competitive and sometimes 2nd
or 3rd
best. But our call center products interoperate with everything else we
put
out and there is a consistent user interface and tech stack. I think we
have
products that are easier to install and maintain than our competitors.
That
may not mean much to the end user, but for a business that buys another
package
and spends lots of money getting it to work with everything else and
not have
it work in the end, it's important. Sort of the difference between
business
software and consumer software.
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