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Oracle budgets remain healthy despite economic pressure

But research shows that managers are hesitant to commit to new ways of working

August 18, 2009

Research conducted by Fujitsu, a leading IT systems, services and products company, in conjunction with UK Oracle User Group (UKOUG) reveals the effect that the recession is having on Oracle budgets. It also provides insight into the attitudes of Oracle users towards key technology trends and purchasing plans for 2009. The research canvassed the opinions of UKOUG members across the UK and Ireland.

Key findings:

  1. Budgets for Oracle projects have remained relatively balanced despite tough economic conditions
    Space
    • 56% of respondents indicated that their budgets have been maintained
    • 11% have seen a budget increase
  2. Oracle users are sceptical as to the benefits of Software-as-a-Service (SaaS)
    Space
    • The overwhelming majority (80%) do not consider SaaS important or are happy without it
    • Very few are considering SaaS implementations over the next 12-24 months – just 3% have SaaS projects planned for this or next year
    • 17% said they were already using SaaS
  3. Oracle users are polarised in their attitudes towards the benefits of offshoring
    Space
    • Half of respondents say that offshoring Oracle applications is not right for their business
    • 39% of UKOUG members already offshore elements of Oracle
    • The remaining 11% are planning or considering offshoring

This is the first-ever joint survey undertaken by UK Oracle User Group and Fujitsu. Fujitsu is a Global Oracle Partner and provides application managed services to over a quarter of a million Oracle end-users. The purpose of this study is to take a snap shot of the current UK Oracle market and gauge what level of effect the recession is having on users' budgets. It is designed to be a useful resource for Oracle users, giving them an overview of the current investment and trends in Oracle business applications and technologies.

Andy Seferta, head of Oracle Practice Fujitsu comments, “The results indicate that Oracle projects have in fact remained relatively intact despite the tough economic conditions. Although there has been some impact, it has not been anywhere near as extensive as we anticipated it would be. A third of respondents said that they had experienced some kind of budget reduction and just 3.6% said that their budget had been cancelled.”

“However, the report does also show a distinct level of caution amongst Oracle users. They are clearly wary of Software-as-a-Service as a delivery model. Despite the ongoing industry hype just 17% are using SaaS and the vast majority have no interest in pursuing a SaaS project for the foreseeable future.”

Ronan Miles, UKOUG chairman comments, “It is reassuring to see that Oracle is so well valued that people are looking to protect those budgets above other IT spend. Oracle is bucking the trend and therefore showing its market significance. We are also very pleased to be working with Fujitsu to bring extra value to UKOUG membership with this economic survey.”

Julie Cave, finance systems manager, Reading Borough Council concludes, “As an Oracle customer for many years, this survey has been really useful to understand the views of other customers regarding spend, projects and attitudes in what is an interesting marketplace at the moment. The public sector also has pressures as well as the private sector and the proactive approach our key partners, Fujitsu and UKOUG, have taken to research and share this information is much appreciated.”

Notes to editors:
The full report can be downloaded at: http://www.fujitsu.com/uk/services/application-services/oracle-services/oracle-survey/

About UK Oracle User Group

UK Oracle User Group (UKOUG) is an independent, not for profit membership organisation created to support Oracle stakeholders. For more information visit: http://www.ukoug.org/ or contact: info@ukoug.org

About Fujitsu

Fujitsu is a leading provider of information and communication technology (ICT)-based business solutions for the global marketplace. With approximately 170,000 employees supporting customers in over 100 countries, Fujitsu combines a worldwide corps of systems and services experts with highly reliable computing and communications products and advanced microelectronics to deliver added value to customers. Headquartered in Tokyo, Fujitsu Limited (TSE:6702) reported consolidated revenues of 4.5 trillion yen (US$55 billion) for the fiscal year ended March 31, 2011. For more information, please see: www.fujitsu.com.

Graham Goulden

Phone: Phone: + 44 (0) 843 354 9568
E-mail: E-mail: graham.goulden@uk.fujitsu.com
Company:Fujitsu UK and Ireland

Stephen Smith

Phone: Phone: + 44 (0) 20 7861 2835
E-mail: E-mail: teamfujitsu@harvard.co.uk
Company:Harvard PR

Date: 18 August, 2009