IDC MarketScape Finds Fierce Competition Among Vendors in the Oracle-Based Systems Integration Ecosystem

FRAMINGHAM, MA – November 29, 2010 – International Data Corporation (IDC) has released a new MarketScape report evaluating and profiling the leading vendors that participated in the Oracle implementation ecosystem in 2009. The IDC MarketScape assessment incorporates quantitative and qualitative characteristics with end user feedback to define the factors that lead to success in the Oracle implementation market in both the short-term and the long-term. The evaluation is based on a comprehensive framework that assesses each vendor relative to a set of criteria, both within a cohort and to one another.

"There is fierce competition among the companies evaluated in this MarketScape in terms of breadth and depth of Oracle implementation services offerings, Oracle-related end-to-end services portfolio, innovation and service delivery capabilities, and customer retention," said Ali Zaidi, senior analyst, IT Consulting and Systems Integration Strategies at IDC. "Opportunities for improvement include increasing the Oracle talent pool and offshore presence for some vendors, improving Oracle-related marketing campaigns and strategies, and aligning future pricing for further adoption of the full Oracle suite."

The Oracle implementation market covers the design, build, and integrate functions of the design-build-run function chain. The design phase includes both IT and business consulting, while the build and integrate functions focus on systems integration (SI) — a process that includes planning, design, implementation, and project management of a technical solution that addresses a customer's specific technical or business needs. In 2009, the Oracle ecosystem market generated $54 billion in revenue, inclusive of outsourcing and operation-related activities, project-based services, and training and education.

Several types of factors emerge as the most influential in predicting success in the Oracle implementation ecosystem:

— Oracle implementation offerings are the most vital aspect of success for

vendors participating in the ecosystem. Vendors should be able to

deliver a full range of Oracle-based services and solutions globally and

should possess implementation capabilities around the key Oracle product

offerings. In addition, the focus should be on business intelligent

products, such as Hyperion and Edge Applications. Complementary

offerings, including business consulting and operation-related services,

improve a provider's position in the ecosystem.

— The pricing model must include a differentiated pricing approach,

pricing methodology, and/or future pricing alignment or plans that will

encourage further adoption of the full Oracle suite. Successful services

providers are developing pricing options and methodologies beyond the

traditional fixed price approach and/or time and materials.

— A dedicated, direct sales force aligned with the core delivery team and,

increasingly, being able to sell alongside other business units or the

technology services organization for implementation or strategy

consulting projects.

— A strategy that includes a blend from a portfolio strategy, to ensure

that the client makes most effective use of the technology for business

transformation, and elements from a growth strategy to focus on emerging

services areas such as SI services around cloud computing, SaaS or a

more distributed global delivery model. A successful strategy should

also include elements from a go-to-market strategy, specifically around

the relationship and co-development activities with Oracle, and the

levels of investment dedicated to the Oracle practice.

IDC MarketScape: Oracle Implementation Ecosystem, 2009 Vendor Analysis (IDC #225708) evaluated thirteen vendors in the Oracle-based systems integration ecosystem. The vendors included in this analysis are Accenture, CSC, Deloitte, Fujitsu, HCL AXON, HP-EDS, IBM, Infosys, Oracle, Patni, PwC, TCS, and Wipro. The IDC MarketScape methodology placed Accenture, IBM, and Infosys in the "Leaders" category. Most of the other vendors are close behind in the "Major Players" category.

About IDC MarketScape

IDC MarketScape vendor analysis model is designed to provide an overview of the competitive fitness of ICT (information and communications technology) suppliers in a given market. The research methodology utilizes a rigorous scoring methodology based on both qualitative and quantitative criteria that results in a single graphical illustration of each vendor's position within a given market. IDC MarketScape provides a clear framework in which the product and service offerings, capabilities and strategies, and current and future market success factors of IT and telecommunications vendors can be meaningfully compared. The framework also provides technology buyers with a 360-degree assessment of the strengths and weaknesses of current and prospective vendors.

For more information about IDC MarketScape, please contact Karen Moser at kmoser@idc.com.

About IDC

International Data Corporation (IDC) is the premier global provider of market intelligence, advisory services, and events for the information technology, telecommunications, and consumer technology markets. IDC helps IT professionals, business executives, and the investment community to make fact-based decisions on technology purchases and business strategy. More than 1,000 IDC analysts provide global, regional and local expertise on technology and industry opportunities and trends in over 100 countries. For more than 46 years, IDC has provided strategic insights to help our clients achieve their key business objectives. IDC is a subsidiary of IDG, the world's leading technology media, research, and events company. You can learn more about IDC by visiting www.idc.com [http://www.idc.com].

All product and company names may be trademarks or registered trademarks of their respective holders.

###