STRATEGY
Oracle's Indian OdysseyA
firm grip on the e-nablement domain, a focus on software developers, and
an eye on future markets like call-centres-Oracle's success-code is ready
to run.
By
Venkatesha Basu
An
11-storey car park-that's the kind of sentence fragment that can stop you
in your tracks. Surely, something is afoot if this is one of the
highlights of the development centre being built by the Indian arm of
Oracle at Bangalore- suburb Bannerghatta.
For those whose knowledge of oracles is
restricted to the one at Delphi, Oracle built its success around
relational databases-huge warehouses of information that companies could
mine-and later piggy-backed on the most-used vowel in the language to
become a company that creates some of e-biz's most crucial building
blocks. Predictably, e-biz is what Shekhar Dasgupta, the CEO of Oracle
India (December 1999 sales: Rs 140 crore; year 2000 projections: Rs 195
crore), is betting on to sustain the 40 per cent growth the company has
managed to clock. Says he: ''Globally, nine of the 10 largest e-commerce
sites, like Amazon and eBay use an Oracle platform. Once e-commerce takes
off, we believe Oracle India will have a very important role to play.''
Oracle India's focus on database software,
application servers (these drive on-line transactions), and a suite of
software development tools (the latest labelled 9i) could help the company
leverage the growing e-biz enablement market in India. In layspeak, the
increase in the number of data-centres and server farms-required to store
the huge amount of data companies doing business online need, and host
websites respectively-will up demand for the company's databases and
application servers.
Oracle isn't the only company trying to
address this market. But it certainly is the only one providing an entire
product-suite: its competitors like i2 Technologies (a supply-chain
specialist) and Siebel (which focuses on customer management), target
niches. A company that chooses to buy best-of-breed software from
specialists will have to hire a team of consultants to integrate them into
a meaningful whole. Explains Steve Illingworth, Senior Director, Oracle
Corporation: ''Speed to market and enhanced efficiency will make buyers
opt for a single suite.''
Not everyone agrees with that. Says an
executive who works for one of Oracle's focused rivals: ''Customers prefer
best-of-breed solutions. And platform-stability is one issue that Oracle
hasn't addressed.'' Still, Oracle's approach to distribution does give it
an edge. Rather than sell its product directly, it has forged
relationships with leading system integrators like Wipro, Digital,
PricewaterhouseCoopers, and TCS.
A focus on the software-developer community
is part of the growth-recipe Oracle India is brewing. That shouldn't come
as a surprise: around 5 per cent (64,000) of the 1.2 million registered
software developers who use Oracle's development tools is based in India.
Ask Dasgupta about the other ingredients of
Oracle's growth brew and he reels off a slew of initiatives: increasing
manpower from 700 to 1,000 in the next 12 months; investing $15 million (Rs
70.31 crore) over the next year; exploring opportunities to offer
call-centre solutions in India to tap the booming market; and launching
its databases in 15 more Indian languages (they're already available in
Hindi and Tamil). An impressive list that, and it's in Oracle India's
ability to pull these off that the answer to that original question about
the 11-storey car park lies. Did the company scale up too soon?
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