Oracle Makes AI Moves To Dominate ERP Market

After years of expansion, Oracle’s ERP business – now covering an extensible portfolio of backoffice applications that are loosely connected by function but tightly integrated at its core – is mounting the biggest challenge against its competitors.

At recent events, Oracle made that point abundantly clear by emphasizing how its Cloud ERP applications are extensible to manage critical functions from virtual payments to supply chain operations, in addition to the use of AI enhancements that automate everything from financial report summarization to predictive insights.

Similarly, Oracle’s cloud applications are scalable to deliver industry specific capabilities for healthcare, public safety and other key verticals, a stance that has been reiterated by its CTO and co-founder Larry Ellison. Oracle has started making them widely available, especially those for healthcare employee talent management and scheduling as well as federal accounting for e-government administration.

These developments are indicative of how Oracle has evolved to become one of the fastest-growing ERP vendors over the past few years for both ERP Financial Management (mostly covering AP, AR and GL processes) and ERP Services and Operations Management (meaning industry-specific back-office functions like store management for retailers, core banking for financial institutions and electronic health records for healthcare providers).

After buying NetSuite in 2016 to lay the foundation to become the largest cloud ERP vendor, Oracle proceeded to add thousands of net new ERP customers. Since 2019, it has expanded further in the ERP market both organically and inorganically through its 2022 acquisition of Cerner, erasing the lead that SAP has enjoyed for the past decades.

Today, Oracle trails SAP in the $124-billion ERP software market by a slim margin, as shown in the table below.

Source: Apps Run The World, May 2024

In fact, Oracle’s market share has grown a full two percentage points since 2019, while SAP’s has dropped.

Source: Apps Run The World, May 2024

Buyer Intent: Companies Reading this Research Report

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1. Altea, a Italy based Professional Services organization with 193 Employees
2. Oracle, a United States based Professional Services company with 159000 Employees
3. Oracle, a United States based Professional Services organization with 159000 Employees

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Logo	Company	Industry	Employees	Revenue	Country	Evaluated
	Altea	Professional Services	193	$20M	Italy	2025-01-07
Subscribe	Subscribe	Professional Services	159000	$53.0B	United States	2024-12-20
Subscribe	Subscribe	Professional Services	159000	$53.0B	United States	2024-12-19
Subscribe	Subscribe	Professional Services	159000	$53.0B	United States	2024-12-18
Subscribe	Subscribe	Communications	15871	$5.7B	Japan	2024-12-16
Subscribe	Subscribe	Professional Services	159000	$53.0B	United States	2024-12-12
Subscribe	Subscribe	Professional Services	10	$1M	United States	2024-12-12
Subscribe	Subscribe	Life Sciences	30	$3M	United States	2024-12-10
Subscribe	Subscribe	Professional Services	159000	$53.0B	United States	2024-12-09
Subscribe	Subscribe	Education	5100	$1.3B	United Kingdom	2024-12-07
Subscribe	Subscribe	Professional Services	400	$182M	United States	2024-12-06
Subscribe	Subscribe	Professional Services	159000	$53.0B	United States	2024-12-05
Subscribe	Subscribe	Professional Services	411951	$59.3B	United Kingdom	2024-12-04
Subscribe	Subscribe	Professional Services	10000	$2.7B	United Arab Emirates	2024-12-04
Subscribe	Subscribe	Professional Services	159000	$53.0B	United States	2024-12-03
Subscribe	Subscribe	Professional Services	159000	$53.0B	United States	2024-12-02
Subscribe	Subscribe	Aerospace and Defense	500	$150M	United Kingdom	2024-11-30
Subscribe	Subscribe	Professional Services	25	$3M	Kenya	2024-11-28
Subscribe	Subscribe	Professional Services	159000	$53.0B	United States	2024-11-27
Subscribe	Subscribe	Professional Services	100	$10M	Japan	2024-11-27
Subscribe	Subscribe	Professional Services	150	$46M	United Kingdom	2024-11-27
Subscribe	Subscribe	Professional Services	159000	$53.0B	United States	2024-11-26
Subscribe	Subscribe	Professional Services	3700	$2.7B	United Kingdom	2024-11-25
Subscribe	Subscribe	Professional Services	159000	$53.0B	United States	2024-11-25
Subscribe	Subscribe	Transportation	1548	$608M	Canada	2024-11-25
Subscribe	Subscribe	Professional Services	18800	$7.3B	United States	2024-10-25
Subscribe	Subscribe	Professional Services	18800	$7.3B	United States	2024-10-24
Subscribe	Subscribe	Professional Services	159000	$53.0B	United States	2024-10-10
Subscribe	Subscribe	Professional Services	442	$1M	Japan	2024-10-07
Subscribe	Subscribe	Construction and Real Estate	10	$1M	United States	2024-10-07
Subscribe	Subscribe	Professional Services	442	$1M	Japan	2024-09-24
Subscribe	Subscribe	Professional Services	159000	$53.0B	United States	2024-08-29
Subscribe	Subscribe	Education	18751	$4.5B	Brazil	2024-08-20
Subscribe	Subscribe	Professional Services	15	$1M	Brazil	2024-08-19
Subscribe	Subscribe	Banking and Financial Services	500	$100M	New Zealand	2024-08-12
Subscribe	Subscribe	Professional Services	159000	$53.0B	United States	2024-08-07
Subscribe	Subscribe	Professional Services	159000	$53.0B	United States	2024-08-01
Subscribe	Subscribe	Professional Services	40	$4M	India	2024-06-17
Subscribe	Subscribe	Professional Services	5000	$1.3B	South Korea	2024-06-03
Subscribe	Subscribe	Professional Services	18800	$7.3B	United States	2024-05-31
Subscribe	Subscribe	Professional Services	5000	$1.3B	South Korea	2024-05-29
Subscribe	Subscribe	Professional Services	600	$70M	Brazil	2024-05-29
Subscribe	Subscribe	Professional Services	600	$70M	Brazil	2024-05-28

Oracle has every intention to dominate the ERP market with a multi-pronged strategy.

At an industry event last month, Ellison declared healthcare and the associated applications for medical operations and electronic health records the most important part of its business. He announced plans to move Oracle’s headquarters from Austin to Nashville where the Music City has made public health the key to its future by attracting an extensive network of hospitals, research institutions and millions of health professionals.

Mike Sicilia, executive vice president of global industries, said after buying Cerner and porting its software to run on Oracle Cloud Infrastructure and tools like Apex for on-demand automation, data integrity and low-code development, it is well positioned to transform the industry and the public health at large. He cites Encompass Health for running a full suite of ERP and EHR systems from Oracle at its 160 hospitals, paving the way for the Birmingham, AL-based organization to use its clinical database and predictive tools to improve provider and patient outcomes.

Steve Miranda, executive vice president of applications development, said the appeal of Oracle Fusion Cloud Applications Suite will only grow as customers begin seeing a plethora of generative AI enhancements built into ERP such as predictive forecast explanation and financial reporting narratives with natural language support. The embedded enhancements, which will proliferate overtime, will be priced in without requiring customers to pay extra to leverage large language models via OCI Generative AI service.

Despite the considerable investments, Rondy Ng, executive vice president of applications development, insists that Oracle’s AI push will not shortchange existing and future ERP innovations because whatever benefits customers realize from such enhancements will result in increased  consumption of Oracle products at the enterprise level.

Ng said the recent partnership with MasterCard to deliver virtual card payments is another example of an all-encompassing ERP strategy by tackling the plumbing challenges of many organizations that gravitate toward touchless operations for maximum efficiency. Ng added that the goal is to help Oracle users better manage their daily cash flow by adopting a MasterCard virtual card system that’s tightly integrated into Oracle Cloud ERP to ensure ontime, secure, and cost efficient payments.

Miranda added that another big difference between Oracle’s ERP suite strategy and that of its competitors lies in the system of record that its customers are capable of achieving as all datasets are based on Oracle databases and both public and sovereign cloud infrastructure. That is also the AI challenge facing other vendors when their datasets are derived from either inconsistent or even untrusted sources.

The push toward an all-encompassing ERP strategy at Oracle, which aligns with an extensible portfolio of cloud applications for CX, HCM and SCM through regular updates and full interoperability, comes at a time when other software vendors are either bundling or unbundling their core products with AI add-ons in order to pay for sizable AI computing expenses. Oracle is in an enviable position to enable its customers to have all-access AI privileges without the burden of being nickel and dimed every time they need to activate a co-pilot or digital assistant for a simple query, which is actually derived from data and IP they already own.

List of Oracle Cloud ERP Customers

Source: Apps Run The World, May 2024

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