Oracle Market Share, Revenues And Performance – 2013

There have been a plethora of new-school Fortune 500 tech companies that are based on the internet and gadgets. However, Oracle continues to be one of the biggest software companies in the world. Redwood Shores based Oracle is currently ranked 80 in the list of the biggest companies in the world. Here are some key metrics about Oracle that we have been able to gather.

Year Oracle's position in Fortune 500
2012 82
2013 80

Growth over the last year

Year Growth rate
2012 7%
2013 8%
Last decade 14% CAGR

 

Software vs. Hardware

Software continues to be one of the major growth drivers for the company. According to the most recent press statement, software contributes close to 75% of the overall revenues. Of this, license updates and software upgrades of JD Edwards and other proprietary software contributes to more revenue than the sale of new software licenses.

Business component Jun-Aug 2013 Revenues YoY change
New software license $1.653 billion 5% growth
Software license update $4.431 billion 7%

 

In the hardware business, Oracle isn’t doing so well. Here are some crucial numbers mined from the latest reports. For a perspective, most of these revenues are gained from components of business Oracle got after acquiring Sun Microsystems for $7.4 billion.

Business component Jun-Aug 2013 Revenues YoY Change
Oracle Servers $669 Million 14% drop
Hardware support $592 Million 3% growth
Gross profit margin 61.9%

 

Oracle Ranking & Market Share In Various Businesses

Despite investors losing interest of late, Oracle continues to be one of the largest software companies in the world. Here is the market share of Oracle in some of the business it operates.

Business/Product Rank/Market share
Software company Number 2
RDBS Database 48.3% revenue (Number 1)
ERP (JD Edwards) 13% (Number 2)
Business Intelligence 14.9% (Number 2)

VOIP Market Statistics And Projections – 2013

An eMarketer report in 2008 predicted the number of VOIP subscribers to reach 196.3 million worldwide by 2012. It should be interesting to look at these figures with the benefit of hindsight. According to a report released by Point Topic earlier this year, we seem to have missed those numbers quite significantly. According to the report, the total number of VOIP subscribers by the end of 2012 stood at 151.5 million. This is how the numbers stack up when distributed geographically

Region Market Share
North America 25.1%
America (others) 4.5%
Asia-East 35.7%
East Europe 1.2%
Rest of Europe 33%
Oceania 0.5%

So as you can see, VOIP is still strongly associated with the developed world and regions in Asia that have always been strong in the area of telecommunications. The report lists the following countries as the largest in the VOIP market.

Country Subscribers in millions (Q1 2013)
USA 34.21
Japan 30.99
France 22.48
South Korea 12.54
China 11.85
Germany 11.05
Brazil 5.30
Netherlands 4.86
Canada 4.73
UK 4.17

However, in terms of percent growth, emerging countries rule the roost. Lithuania, Puerto Rico, Poland, Ireland and Brazil form the top 5 in this list. According to Infonetics, VOIP is expected to be an $80 billion industry by 2017. This would mean a 7% compounded annual growth rate from 2012. This is expected to be primarily driven by businesses since residential connections are expected to only grow at 3% CAGR during this period. The report notes that SIP trunking is one of the popular growth areas have risen 23% from the second half of 2012 to the first half of 2013.

The Infonetics report further looks into the VOIP equipment providers who have largely benefitted from this growth. Here are the largest 5 providers in terms of global revenue share

Rank Provider
1 Huawei
2 Alcatel-Lucent
3 Genband
4 NSN
5 Acme Packet

Despite the bullish growth projections, the market itself is reportedly under-served according to the New York based Eastern Management group. In their research, the firm projects the number of SIP phones sold to double between now and 2018. Going by these metrics, the firm notes that new entrants could easily take up to 10% market share.

Given these fast changing numbers, it would be interesting to revisit these numbers in a couple of years from now to see how things have changed.

ERP Implementation, Budgeting & Savings Related Statistics For 2013

A survey report released by Gartner earlier this year noted that the ERP market had a sluggish growth last year clocking a rate of just 2.2%. Despite this, the growth of SaaS based ERP solutions are expected to grow at a healthy pace to reach 17% of the market by 2017 (12% in 2012). These projections are further strengthened by a report released by Panaroma Consulting. In their annual ERP report for 2013, the firm has come up with some pretty interesting statistics and projections. Here is a rundown of the various results from the survey.

Type Of ERP Solution Used

A whopping 61% of the firms still use on-premise ERP systems. While this could be disheartening to the proponents of cloud based enterprise systems, what this also reflects is the tremendous potential that cloud ERP solutions have for the future. Here is the market share of the various ERP systems as noted by Panaroma in their report.

ERP System Market Share
On-premise 61%
SaaS 14%
Cloud ERP (hosted and managed off-site) 12%
Others 13%

Reasons Why Companies Are Still Skeptical About Cloud ERP

Most discussions on why cloud ERP are still not dominant veer towards risks like data loss. However, the research reports points out that one of the biggest reasons is lack of knowledge about service offerings. This is a very interesting tidbit since cloud ERP providers only need to enhance their marketing efforts to start seeing much improved adoption rates from businesses.

Reason Percentage of respondents
Risk of security breach 32%
Low awareness 32%
Risk of data loss 17%

Cost Savings From Cloud ERP Migration

One of the biggest advantages to migrating to cloud ERP systems is definitely the cost factor. A survey of various businesses who have made this migration show that the cost savings are pretty decent.

Cost savings in % Percentage respondents
0-20% 60%
21-40% 24%
41-60% 8%
61-80% 0%
>80% 8%

Use Of ERP Consultants

A lot of businesses make use of third party ERP consultants to help them with implementing the system. For example, ERPGuru is a NetSuite partner in Canada that helps in implementing and supporting the NetSuite cloud based business management software. The Panaroma Consulting report notes the use of consultants during the various phases of the project:

Project Phase Consultants employed
Planning 35%
Selection & Purchasing 35%
Implementation 28%
Post Implementation 2%

ERP Implementation Budgeting

One of the concern areas for businesses during implementation of such projects is the overall cost and how it impacts the budgeting. According to the Panaroma report, the implementation of ERP was on budget only around 35% of the time.

Budgeting Occurrence
On budget 35%
25% over budget 31%
26-50% over budget 16%
51-75% over budget 4%
>76% over budget 2%
Under budget 12%

Project Schedule

After budgeting, the next big concern for businesses is whether or not the implementation happens on time. The report reveals the following data.

Duration Occurrence
On Schedule 34%
<25% over schedule 27%
26-50% over schedule 10%
51-75% over schedule 12%
>76% over schedule 12%
Earlier than scheduled 5%

Online MBA – Demographic Profile & Growth Trend

With a slowing economy, the demand for higher education has been on the rise since more and more people seek to hone their academic profile. Considering that the current physical infrastructure of educational institutions may not be sufficient to cater to this ever-growing demand, more and more universities are now looking at online courses to reach out to a wider base of students. According to the 2012 Application Trends Survey conducted by the Graduate Management Admission Council (GMAC), over 66% of the surveyed institutions have reported an increase in applications to their online MBA program in 2012 compared to 2011. This is in stark contrast to the Full time courses where only 42% of the surveyed institutions have reported a growth in applications.

Demographic Profile:

Interestingly, domestic applications have shown a higher growth in demand compared to foreign applications. According to the report, over 45% of the surveyed institutions reported a growth in applications from domestic candidates where as only 41% of those reported a similar increase from foreign applications. The report also says that the number of applications from men was seen to have risen in the case of 45% of the institutions.

Most MBA institutions, including those offering full time conduct special outreach programs targeting specific segments of candidates to their programs. For example, an institution offering healthcare MBA might want to specifically target health professionals for their MBA program. The GMAC survey notes the following three segments as the most popular categories in the outreach programs conducted by online MBA institutions.

1. Working professionals
2. Military
3. Undergraduate students

Tuition Assistance For Online MBA Programs

GMAC also studied the kind of tuition assistance offered to these students. For online MBA, here is how the various options stacked up (numbers may not add up to 100% since some students may be offered more than one kind of assistance):

No assistance : 52%
Scholarships : 30%
Assistantships : 19%
Reduced tuition : 4%
On-campus work study : 4%

Summary

Here is a gist of the online MBA landscape as reported by the GMAC survey.

Work Experience

No experience : 6%
< 1 year : 4%
1-3 years : 13%
3-6 years : 24%
6-10 years: 25%
> 10 years: 30%

Age

<= 22 years : 2%
22-25 years : 18%
26-30 years : 28%
31-34 years : 17%
35-39 years : 15%
>= 40 years : 19%

Geographical Location

Local : 32%
National : 58%
International : 10%

Gender

Male : 57%
Female : 43%

Citizenship

Domestic : 87%
Foreign : 13%

Most Visited Websites At Work

Managed security company, Network Box has studied over 13 billion URLs visited by businesses in the first quarter of 2010. The results are not too surprising. Facebook leads the pack in terms of the number of visits. The study concludes that a good 6.8% of all website traffic from businesses was to Facebook.com. Here are the top websites visited at work and the percentage of traffic share they constitute

1. Facebook : 6.8%
2. Google : 3.4%
3. Yimg (Yahoo image server) : 2.8%
4. Yahoo : 2.4%
5. DoubleClick : 1.7%

Sounds unconvincing? Well, the study has apparently studied the hits on the various servers and considering that several Yahoo images are loaded from Yahoo’s image server at yimg.com and also because several websites host Google ads that load from doubleclick.net, these websites appear to be the most popular.

While a majority of users may be unaware of them having visited these websites, in terms of hits, this is how it is.

US Cities With Fastest Internet Speed

Few months back, a study published by SpeedMatters.org listed down the American states with the highest measured broadband connectivity speed. Now, in a similar report conducted for individual cities, Akamai looks into the average connection speed. Interestingly as pointed out in the study, US cities or towns that host colleges are among the places with the most impressive broadband internet speeds.

Here are the fastest US cities and the average connection speed according to Akamai

1. Berkeley, CA : 18.73 Mbps
2. Chapel Hill, NC : 17.483 Mbps
3. Stanford, CA : 16.956 Mbps
4. Durham, NC : 13.636 Mbps
5. Ithaca, NY : 13.365 Mbps
6. Ann Arbor, MI : 13.178 Mbps
7. College Station, TX : 13.129 Mbps
8. Urbana, IL : 11.764 Mbps
9. Cambridge, MA : 11.708 Mbps
10. University Park, PA : 11.066 Mbps

AT&T Revenue Split-Up By Business

AT&T reported revenues of $2.5 billion and sales worth $30.6 billion for the quarter ending March 2010. So where has this money come from? According to the announcement, close to half of the revenues have come from Ma Bell’s wireless business with another quarter of the sales having been with the wired offerings.

Here is a break down of the $30.6 billion sales by the businesses that AT&T operates

Wireless : 45%
Wireline Data/Managed Services : 24%
Wireline Voice : 24%
Advertising solutions/Others : 7%

Mobile Coupons Statistics

Mobile coupons are still only a small percentage of the entire coupon segment yet they are among the most popular. According to a recent study by Borrel Associates, Mobile coupons have a much higher redemption rates than those from newspapers or mail – as much as 10x times.

After a pretty flat growth during 2007 and 2008, the mobile coupons market has been growing blazingly fast since then and is expected to continue the trend for more years to come.

Here is the projected total spending from mobile coupons as studied by Borrell Associates

2006 : $3.3 million
2007 : $7.2 million
2008 : $7.15 million
2009 : $86.4 million
2010 : $373.7 million
2011 : $1055.3 million
2012 : $2242.4 million
2013 : $4101.6 million
2014 : $6598.5 million

Best Social Media Tools For Business

It goes without saying that Twitter and Facebook are among the most popular social media tools for businesses. A survey of marketing professionals by Social Media Examiner saw these two platforms racing neck-to-neck in popularity and usage.

However a good chunk of the marketers also use other social media channels including blogging, Youtube and the likes. Here are the results from the survey ranked by the percentage of marketers who used the platform

1. Twitter : 88%
2. Facebook : 87%
3. LinkedIn : 78%
4. Blogs : 70%
5. YouTube : 46%
6. Social Bookmarking Sites : 27%
7. Forums : 26%
8. Social news aggregators : 22%
9. Ning : 17%
10. MySpace : 11%

Number Of Unique IP Addresses In The World

With an increasing number of desktop and mobile devices available to surf the internet from, the internet is seeing an amazing growth in terms of the number of unique IP addresses. Akamai’s recent “State of the Internet” report looks into the global growth of this parameter and notes that US is still very much the hot-bed for the growth of unique IP addresses.

Here is the ranking of countries based on the unique IP addresses that they contribute

1. USA : 124.95 million
2. China : 52.11 million
3. Japan : 32.25 million
4. Germany : 30.91 million
5. France : 21.47 million
6. UK : 20.00 million
7. South Korea : 16.10 million
8. Canada : 11.40 million
9. Spain : 10.82 million
10. Brazil : 10.77 million

Worldwide : 465,019,509 unique IP addresses