Thursday, August 28, 2008

ORACLE, SATYAM TO SELL JD EDWARDS PRODUCTS

Sreekala G, Hyderabad
The Economic Times (Bangalore edition)

Enterprise software major Oracle and leading IT services firm Satyam Computer Services are planning to cash in on the growing momentum in the mid-size business segment in India to expand the JD Edwards product line.

Satyam is looking at doubling its JD Edwards consultants from 500 to 1,000 in two years. The company also expects revenues from this practice to go up from 5-6% to 7-8% in two years. JD Edwards is an enterprise resource planning (ERP) software.

“We are targeting mid-market segment to expand our JD Edwards product line. It is part of our strategy as this product line is priced competitively and does not require highly complex implementation procedure. In fact, our mid-market segment business is growing at over 24% annually,” said Lenley Hensarling, group vice-president (JD Edwards), Oracle Corporation.

According to him, partners like Satyam help Oracle to expand its clientele in the mid-market segment in India especially in smaller cities.

“Besides manufacturing and distribution sectors, we will focus on other key industries including foods & beverages, oil and natural gas, real estate and infrastructure to expand the JD Edwards product line. Emerging companies in these segments wanted to adopt enterprise software as it will help them achieve scale and efficiency,” he said. Oracle also owns other enterprise resource planning (ERP) software like Peoplesoft and its own ebusiness suite.

While JD Edwards is specifically used to target mid-size customers, others are mainly implemented among large clients. The $22.4-billion company has acquired 165 customers in Asia Pacific for the JD Edwards products line in the last two years. Overall, it has over 1,000 customers in Asia Pacific.

Satyam also has a strong ERP practice and large manufacturing clientele making it a suitable partner for Oracle to market the JD Edwards product line. Consulting and enterprise business solutions business contributed 44.7% of Satyam’s revenues in the first quarter of 2009.

0 comments: