Customer Demand for Integrated, Industry-Driven, Standards-Based Software
Drive Uptake of Oracle Applications
Oracle Asia Pacific’s Applications business continues to grow rapidly as new license revenues increased by 80% for full fiscal year FY06 (ended 31 May 2006). This growth was driven by a significant increase in customer demand for Oracle Applications to support critical business requirements. The number of Oracle Applications customers in Asia Pacific (excluding Japan) has grown significantly to more than 4,800.
“FY06 has been a year of tremendous growth for Oracle’s Applications business in Asia Pacific,” said Mark Gibbs, senior vice president for Applications, Oracle Asia Pacific. “We delivered total new applications license revenues growth of 80% for the full fiscal year by staying firmly focused on offering what customers want: open, flexible and standards-based software with deep industry functionality, that drive business agility, insight, and ultimately, growth and stockholder value. Oracle is clearly gaining customer mindshare and taking away market share from our competition in this region.”
At this rate of growth, Oracle is clearly outpacing the competition in the Asia Pacific region. SAP’s software revenue growth for Asia Pacific in its last full year FY2005 (ended 31 December 2005) was 39% .
Oracle Asia Pacific (ex Japan) Applications Revenues Grow by up to 220% in Key Industries
Oracle Asia Pacific (excluding Japan) reported significant year-on-year growth in new applications license revenues in FY06 across key high-growth industries in Asia Pacific, including financial services, communications, utilities, government, education, healthcare, manufacturing, retail and distribution. Customers in key industries across Asia Pacific that adopted or expanded implementations of Oracle Applications to integrate and automate their business systems, increase business insight, efficiencies and performance, and lower costs in Q4 and FY06 included:
Government, Education & Healthcare: Delivers record 220% growth with large, strategic deals
Wins included: International Islamic University Malaysia, Malaysian Center for Remote Sensing, Ministry of Health (Malaysia), National Audit Department (Malaysia), National Library Board (Malaysia), Parkway Group Healthcare Pte Ltd (Singapore), Reliance Life Sciences Pvt. Ltd. (India), Siam Pharmaceutical Co., Ltd. (Thailand), University of Technology, Sydney (Australia)
Communications, Media & Utilities: Customer insight and data management drive 105% growth
Wins included: Avtec Limited (India), China Netcom (China), DiGi Telecommunications (Malaysia), DTAC (Thailand), Maxis Communications (Malaysia), Oil & Gas Development Co Ltd (Pakistan), Petronas (Malaysia), Sony Ericsson (China), Telekom Malaysia, Star Publications (Malaysia), TVSN ChinaWesfarmers Energy (Australia), Orion Health (NZ), Warid Telecom (Pakistan)
Financial Services: Corporate governance, risk management and financial control requirements drive 21% growth
Wins included: AM Bank Bhd. (Malaysia), Bank of India, Bank of Maharashtra (India), BCB (Malaysia), Cathay United Bank (Taiwan), China Development Bank, Construction Bank of China, E-Sun Bank (Taiwan), Huaxia Bank (China), Hyundai Capital (Korea), KBank (Thailand), Maybank (Malaysia), Pingan Insurance (China), Reserve Bank of India, Shinhan Bank (Korea), Takaful Nasional (Malaysia).
Manufacturing, Retail & Distribution, & Others: End-to-end management and demand-driven supply chain adoption drive 69% growth. Wins included:
High Technology, Manufacturing & Automotive: Aditya Birla Management Corporation Ltd (India), Aerosun Corporation (China), BenQ (Taiwan), Berger Paints India Ltd. (India), Chang’an Group/Jiangling Motor (China), Dynacraft Industries (Malaysia), First Auto Works Group (China), HangXiao Steel Construction (China), Hindustan Paper Corporation Limited (India), KKB Engineering (Malaysia), Lippo Karawaci (Indonesia), LKT Industrial Sdn Bhd (Malaysia), Matsushita Electric (China) Co., Ltd., Tbk, PT. (Indonesia), Penfabric Sdn Bhd (Malaysia), Pitti Laminations (India), Reliance Weaving Mills Limited (SAGE), Shanghai Electric (China), Tbk (Indonesia), Vatana Phaisal Engineering Co., Ltd. (Thailand), Wuyang Iron & Steel (China)
Logistics, Travel & Transportation: Auckland International Airport Limited (NZ), China Eastern Airlines, Century Total Logistics Sdn Bhd (Malaysia), Hanjin Shipping Co.Ltd. (Korea), India Pistons Limited, JSW Steel Ltd (India), Port of Tanjung Pelepas (Malaysia)
Consumer Goods: Central Restaurants Group Co Ltd. (Thailand), PT Hanjaya Manndala Samoerna (Indonesia)
Retail: Central Retail Corporation Limited (Thailand), C&U Group (China), PT. Matahari Putra Prima Tbk (Indonesia), Warehouse Stationery Limited (NZ)
Customer Relationship Management (CRM): Grows leadership in market with 77% growth
Wins included: Bank of Maharashtra (India), HangXiao Steel Construction (China), Wesfarmers Energy (Australia)
Human Capital Management (HCM): Significant wins drive 71% growth
Wins included: Bank of India (India), Central Retail Corp Ltd (Thailand), Hanjin Shipping (Korea), Oil & Gas Development Company (Pakistan), Parkway Group Healthcare (Singapore), PT Hanjaya Manndala Samoerna Tbk (Indonesia) Pingan Insurance (China), University of Sydney (Australia)
Supply Chain Management (SCM): Increasing global competitiveness fuel 77% growth
Wins included: Central Restaurants Group (Thailand), India Pistons Ltd (India), Matsushita Electric (China), Parkway Group Healthcare (Singapore), Reliance Weaving Mills Ltd (Pakistan), Sony Ericsson (China), Vatana Phaisal Engineering Co Ltd (Thailand), Warehouse Stationery Ltd (New Zealand), Wesfarmers Energy (Australia)
Financial Management Software (FMS): 58% growth with major wins
Wins included: Auckland International Airport Ltd (New Zealand), China Eastern Airlines (China), Hanjin Shipping Co Ltd (Korea), PT Matahari Putra Prima Tbk (Indonesia), Siam Pharmaceutical Co Ltd (Thailand), TVSN (China), University of Sydney (Australia)
Oracle Commits to Standards to Help Companies Reduce Complexity
Across industries and geographies, organisations of all types and sizes work with a mix of technologies, systems and custom-built applications. In order to respond to rapidly evolving business requirements and manage the complexity and high costs of maintaining disparate systems, companies are increasingly looking at implementing standards-based solutions and service-oriented architectures (SOAs). This will enable them to develop of modular business services that can be easily integrated and re-used, thus creating a truly flexible, adaptable IT infrastructure.
Oracle is committed to building standards-based applications and technology software and service-oriented architectures to help organisations reduce complexity and get the most out of existing technology investments. Many organizations are adopting standards-based Oracle Applications software and SOA approach in order to focus more of their resources and budget on innovation and on delivering new business services.
During FY06, more than 250 companies in Asia Pacific (excluding Japan) chose to invest in Oracle Applications over SAP. These included: Anex Electrical Company Limited (Hong Kong), BenQ (Taiwan), Busan Port Authority (Korea), C&U Group (China), China Development Bank (China), China Netcom (China), Columbindo Perdana (Indonesia), Construction Bank of China (China), DTAC (Thailand), Dynacraft Industries (Malaysia), First Auto Works Group (China), Gardenia Bakeries Inc (Philippines), GT Petrochem (Indonesia), Hangxiao Steel Construction (China), Huaxia Bank (China), KSK Food Products (Philippines), Korea Investment Corporation (Korea), LKT Industrial Bhd (Malaysia), Multi-Media Exponents (Philippines), Malaysia Airlines (Malaysia), Malaysian Flour Mills (Malaysia), Maruti Udyog Limited (India), McGuigan Simeon Wines (Australia), PT Bukit Jaya Abadi (Indonesia), Packway Industries Limited (Hong Kong), Penfabric Sdn Bhd (Malaysia), Pharmaniaga Bhd (Malaysia), Port of Tanjung Pelepas (Malaysia), Shanghai Electric (China), Suguna Poultry Products (India), WNS Global Services (India), Wonokoyo Group (Indonesia) and Wuyang Iron & Steel (China).
“We are seeing strong response from SAP customers in Asia Pacific as they want an alternative to paying for long, complex and costly upgrades to their legacy systems that are inflexible and expensive to maintain. It is clear that the era of proprietary applications is ending. The market is acknowledging that systems are easier to integrate, maintain and secure when they share common standards,” said Gibbs. “Oracle is prepared and investing for the inevitable shift to open standards. Our track record speaks volumes as we have evolved customers with us for nearly three decades across multiple generations of technology. Today, 94% of Oracle E-Business Suite customers are running on the latest version Release 11i.”
Oracle Delivers Customer Value with the Industry’s Most Complete Software Architecture
One of the drivers fuelling Oracle Asia Pacific’s growth momentum is the growing demand amongst customers for a strategic partner that can provide them with innovative, end-to-end business software solutions with deep industry capabilities to address key business challenges, including industry-specific requirements, business agility, cost effectiveness and competitiveness. This presents an immense opportunity for Oracle.
Backed by a series of strategic acquisitions and continued organic growth, Oracle is today unrivalled in its ability to integrate its applications, middleware and database components, with leading industry-specific solutions, to develop the most comprehensive industry solution footprints and software architecture. This is critical to meeting the diverse needs of customers in specific target high-growth industries, including financial services, communications, manufacturing, retail, distribution, public sector, education and healthcare, amongst others.
Oracle has outlined very clearly its strategy which is fundamentally focused on being ‘information-driven’, ‘industry-driven’ and ‘standards-driven’. Additionally, Oracle is helping customers protect their IT investments and lower overall total cost of ownership through its Lifetime Support Policy and Applications Unlimited offering. Together, these provide extended product support and development to deliver superior ownership experience.
“Oracle is solidifying its position as an increasingly relevant and strategic partner to our customers in Asia Pacific by focusing on delivering the greatest value,” said Gibbs. “We are leading the way in developing the most comprehensive, end-to-end solutions portfolio for each focus industry, by building and integrating market-leading applications and technology solutions, that are based on open standards. Customers across Asia Pacific are welcoming our efforts to grow the depth and breadth of our industry capabilities. They are also supportive of our commitment to deliver clear product roadmaps along with extended applications product support and enhancements, as this clearly delivers business value and results.”
“Our momentum in Applications is firm testament that Oracle’s strategy around integrated, industry-driven, standards-based software is resonating in Asia Pacific. This is immensely important because it presents Oracle with significant customer opportunity and the potential to continue driving critical mass and momentum. This in turn will give us economies of scale in our development efforts and, ultimately, help drive significant innovation and benefits for our customers,” said Gibbs.
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For Immediate Release
Media contact:
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