J.D. Edwards Resellers Worry about Oracle Competition

By John Pallatto  |  Posted 2005-07-08 Email Print this article Print

Updated: J.D. Edwards resellers say they are concerned that Oracle's direct-sales organization will be taking a greater share of the midsized corporate sales that they used to get.

REDWOOD CITY, Calif.—J.D. Edwards resellers and system integrators expressed concern Thursday about how big a piece of the market pie Oracle will share with them even as they expressed satisfaction that the enterprise resource product line has a future at least through 2013.

Oracle Corp. convened a partner summit for resellers, integrators and ISVs at its headquarters here Thursday to give them an update on its product strategy for the J.D. Edwards ERP product line that it acquired through its buyout of PeopleSoft Inc. in December 2004.

Under this plan, Oracle will continue to upgrade and support the J.D. Edwards World and J.D. EnterpriseOne ERP applications until the products are fully integrated into Oracle's Fusion middleware architecture. Oracle officials have said that these products will retain a separate identity and upgrade path under the J.D. Edwards name at least until 2013.

During its prolonged legal battle to buy out PeopleSoft, Oracle had promised to support the PeopleSoft and J.D. Edwards product lines for at least 10 years after it acquired the product. While those plans stretch eight years into future from the current date, they do allow Oracle to keep its promise if the time span is calculated from June 2003, when Oracle first announced its bid for PeopleSoft.

The EnterpriseOne suite includes manufacturing, supply chain, human capital management, financial management, customer relationship management and asset life-cycle management.

J.D. Edwards World includes manufacturing management, homebuilder management, distribution management, financial management, human capital management and customer self-service applications that are designed for SMBs (small and midsized businesses) and that run on the IBM iSeries midrange computer system.

Click here to read an interview with Patricia Dues, president of the Oracle Applications User Group, who talks about the Oracle Fusion Council, a user group effort to advise Oracle on integrating its disparate application software on a middleware platform.

Clients are generally relieved to learn that Oracle will continue to support J.D. Edwards for at least the next eight years, said Larry Campbell, president of CD Group Inc., an ERP application consultant and reseller based in Norcross, Ga. The company has about 400 clients, and those that rely on J.D. Edwards applications have been "glad to hear that they have an upgrade path," Campbell said.

But Campbell said he remains concerned that the resellers will be limited to dealing with midsized businesses of $100 million or less. Now any companies with revenue of more than $150 million will be served by Oracle's direct sales force, although resellers still will have an opportunity to provide consulting and integration services to these companies, he said.

The previous limit used to be $150 million, and Campbell said his company would like to be able to participate in the market to the full extent of its capabilities.

An Oracle spokesperson Friday said that Oracle has actually raised the customer revenue ceiling to $500 million as of July 1. Oracle has been talking to the PeopleSoft and J.D. Edwards channels partners about raising the ceiling since last February.

Sharing the market pie.

John Pallatto John Pallatto is eWEEK.com's Enterprise Applications Center editor. His near 30 years of experience as a professional journalist began as a member of the founding staff of PC Week in March 1984. Pallatto was PC Week's West Coast bureau chief, a senior editor at Ziff Davis' Internet Computing magazine and the West Coast bureau chief at Internet World magazine.

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