Seeking Alpha

Microsoft and Salesforce rise, Oracle falls in enterprise app survey

  • In a June Information Week survey covering enterprise app use (excludes software such as Windows, Office, and databases), 24% of respondents named Microsoft (MSFT) their "most strategic " app supplier, up from 19% in April '12.
  • Though its Windows sales have fallen, Microsoft has been seeing solid billings growth for enterprise app offerings such as Dynamics, Exchange, Lync, and SharePoint.
  • Salesforce (CRM) rose to 10% from 6%. The company posted 25% Y/Y billings growth in FQ1, and is reporting FQ2 results on Aug. 29.
  • On the other hand, Oracle (ORCL), which is coming off two quarters of license revenue misses and is reportedly dealing with salesforce turmoil, fell to 23% from 30%. Archrival SAP fell slightly to 15% from 16%.
  • The cloud migration continues: 46% of respondents said their companies are using cloud/SaaS apps, up from a prior 38%. Not surprisingly, companies are more comfortable moving CRM and HR apps to the cloud (Salesforce and WDAY have led the way) than moving ERP apps (SAP's stronghold in the on-premise world).
  • Also, 60% said their firms are using or considering a cloud app platform such as Salesforce's Heroku and Force.com vs. a prior 52%, and 48% said the same for cloud infrastructure platforms such as AWS (AMZN) vs. a prior 41%. Windows Azure competes in both realms.
  • Interestingly, in spite of the rapid growth SAP has seen for Hana, only 13% of respondents said their firms are using an in-memory database. Another 37% are considering, and 50% are unlikely to consider it.
Comments (3)
  • Transcripts&10-K's
    , contributor
    Comments (861) | Send Message
     
    "In a June Information Week survey covering enterprise app use (excludes software such as Windows, Office, and databases), 24% of respondents named Microsoft (MSFT) their "most strategic " app supplier, up from 19% in April '12."

     

    Wait, Microsoft does something besides Windows!? Considering that's all the analysts ever talk about you could've fooled me...
    17 Aug 2013, 09:22 PM Reply Like
  • TruffelPig
    , contributor
    Comments (4103) | Send Message
     
    Long MSFT exactly because of their growth in business applications. I am glad to see MSFT doing so well now.
    17 Aug 2013, 09:44 PM Reply Like
  • Derek A. Barrett
    , contributor
    Comments (3534) | Send Message
     
    Great article, this always gets passed by anytime discussions of Microsoft take place, where it always revolves around, "they're not beating the iPhone/Android"

     

    Think ecosystem not zero-sum winner takes all
    18 Aug 2013, 11:57 PM Reply Like
DJIA (DIA) S&P 500 (SPY)
ETF Hub
ETF Screener: Search and filter by asset class, strategy, theme, performance, yield, and much more
ETF Performance: View ETF performance across key asset classes and investing themes
ETF Investing Guide: Learn how to build and manage a well-diversified, low cost ETF portfolio
ETF Selector: An explanation of how to select and use ETFs