Oracle E-Business Suite vs.

Microsoft Dynamics AX Competitive Guide

Oracle E-Business Suite is a comprehensive suite of integrated, global business applications that supports organizations of all sizesfrom medium-sized organizations with a few hundred users to multinational companies with tens of thousands of users across the globe. E-Business Suite is Oracles flagship product for enterprise resource planning (ERP). This guide is designed to help Microsoft Dynamics AX partners compete more effectively against Oracle E-Business Suite.
Note: This document is intended for use only by Microsoft employees and Microsoft Dynamics ERP partners. You may not use, copy, modify, or distribute this guide; create derivative works of; or otherwise attempt to modify this information, in whole or in part, in any manner or form, for purposes of building a similar or competitive product or service.

Executive Summary
Oracle E-Business Suite is Oracles flagship ERP product, even as Oracle begins to position Oracle Fusion Applications as its new standard for business. To effectively compete against Oracle E-Business Suite, avoid comparing features and functions. Such comparisons divert attention from the key differentiators of Microsoft Dynamics AX: ease of use, flexibility, ease of integration, and low cost of ownership for the application and platform. In addition to these differentiators, share how interoperability with Microsoft Office can accelerate user adoption and provide business intelligence and collaboration at a low cost. Provide research and analyst evidence early in the sales cycle. Several analysts have repeatedly positioned Microsoft Dynamics AX favorably: http://www.microsoft.com/presspass/itanalyst/d efault.mspx In conversations with current Oracle customers, use customer evidence of cost savings and ease of use, as well as the uncertainty around the transition from Oracle E-Business Suite to Fusion Applications to show the benefits of moving to Microsoft Dynamics AX.

Oracle E-Business Suite

Current version: Oracle E-Business Suite 12.1 was released in May 2009 and provided product enhancements across human resources, supply chain management, procurement, projects, master data management, customer relationship management, and financials. License types: License options vary based on the module purchased. The most common licensing method is per processor or per user with a subtle difference between named and concurrent user. For example, while most modules in Human Resources are based on the total number of employees, some modules are based on actual users. Deployment options: Most implementations are on-premises deployments; however a hosted version of Oracle E-Business Suite is available. Hosting services are offered by Oracle partners and not directly from Oracle. Databases supported: Oracle E-Business Suite supports Oracle, IBM, and Microsoft SQL Server databases. Oracle promotes the n-tier capabilities of its architecture (that is, Oracle can support multiple application servers, databases, and user interfaces in a single network topology).

Competitor Value Proposition

Oracle E-Business Suite is mature, innovative, and comprehensive in functionality. It offers flexibility and scalability as well as the availability of many vertically tailored solutions. Oracle also claims: Product reach: The Oracle E-Business Suite is unique because its customers include thousands of small, medium, and large multinational corporations across various industrial segments including manufacturing, retail, and distribution services and governmental organizations. Completeness of solution: Oracle E-Business Suite is strong in most solution areas including manufacturing, financials and human resources management, making it a fit for practically any industry, business model or size of organization. The sophistication and complexities of the solution are offset by unified and consistent 1 screens, making it easy to adopt. Information accessInformation retrieval and reporting: The multiple querying, reporting,
1

Osintsev, Aleksey, TEC Product Certification Report Oracle E-Business Suite (12.1) ERP for mixed-mode manufacturing, March, 2010. http://www.technologyevaluation.com/

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and auditing capabilities of Oracle E-Business Suite allow users to search and track the information they need. For example, users can obtain specific information through an online search-and-select function instead of through reports. Oracle E-Business Suite offers extensive reporting and BI capabilities that are either embedded into the software (for example: rolebased analytical interface, dashboard tools, multiple standard reports), or offered as a standalone application (for example, Oracle Enterprise Performance Management).

solutions from independent software vendors (ISVs) to match the capabilities of E-Business Suite. While Dynamics AX is also feature rich, you should not compare features and functions. Instead, focus on the layered architecture of Dynamics AX and how it empowers partners with deep industry expertise to provide solutions that are just right for their business at an affordable price.

related Microsoft technologies versus other technologies such as Oracle Fusion Middleware. Ease of integration: Because of the difficulty supporting more than one middleware platform, organizations that use primarily Microsoft products should consider applications that run on .NET frameworks. While this is not specifically a technical advantage, it is a key benefit in terms of cost and ease of integration. Industry platform strategy: Some customers may better understand the Microsoft approach to building industry solutions than the Oracle approach. Emphasize that with Microsoft, organizations have access to partners who bring domain expertise and local coverage, plus certified vertical solutions that complement the core industry processes in Microsoft Dynamics AX. Oracles vertical solutions are based on acquisitions and may use different architectures, technologies, and user interfaces. Contrast those differences with Microsoft partner solutions that are built on the same framework as Microsoft Dynamics AX and offer a consistent user experience.

Microsoft Dynamics AX
This section provides more detailed information about the Microsoft offering.

Competitor Sales Techniques

Oracle uses a direct sales model and sells to business decision makers (BDMs). Through its presales program, Insights, Oracle profiles and diagnoses customers businesses and provides strategic advisory services about how Oracles technology stack can meet their needs. ERP sales are part of large solution sales that result from the Insights presales consultation. Though Oracle E-business Suite has a rich feature set, this level of functionality can be overwhelming for some small and mid-sized businessessometimes exceeding their requirements. However, Oracle tries to make the application less complicated by providing these businesses with easier methods and tools for configuration and implementation. Oracle can also support expanding businesses and the future needs of fast-growing companies. Oracle may emphasize its rich feature set and comprehensive industry solutions, and may point out the need for Microsoft to include

Microsoft Value Proposition

Ease of use: Microsoft Dynamics AX has been designed to provide a seamless, familiar user experience for handling both structured (Microsoft Dynamics) and unstructured (Microsoft Office) data. This design can help customers increase user adoption and reduce training costs. With one click, employees can access information from Microsoft Dynamics AX using familiar programs like Microsoft Word and Microsoft Excel . Ease of customization: The model-driven layered architecture of Microsoft Dynamics AX allows unique requirements to be addressed declaratively without writing code. See Getting Ready for Microsoft Dynamics AX 2012 for more information. Platform value: Microsoft Dynamics may have an advantage with its .NET platform and architecture because the midmarket is concerned about the cost of ownership of applications. Organizations may more easily find skilled and affordable resources in .NET and

Microsoft Key Proof Points

Use analyst reports such as Gartners Magic Quadrant for ERP for Product-Centric Midmarket Companies or The Forrester Wave: Order Management Hubs, Q3 2010 (http://www.microsoft.com/presspass/itanaly st/default.mspx) to establish credibility and demonstrate industry support for Microsoft and its strategy. Point out the cost-of-ownership advantages of Microsoft Dynamics. Use customer

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evidence to show how other organizations have saved by switching from Oracle to Microsoft Dynamics. Microsoft Dynamics AX can evolve with organizations for the life of the business. Use analyst and customer evidence to demonstrate low cost of ownership; also use the tools at http://nucleusresearch.com/microsoft-roisupport-center/ to show the rapid return on investment (ROI) that Microsoft Dynamics AX can provide to customers.

Remain with the current implementation of Oracle E-Business Suite, though the software may not be supported in the future. Although Oracle has published a lifetime support policy with extended support that goes past 2014, the cost of maintenance and supportwhich is already high at 22 percentis likely to rise if customers want to continue receiving support for older versions. For example, see http://www.pcworld.com/businesscenter/article/ 221851/some_oracle_customers_face_looming_s upport_fee_rise.html. The possibility of rising support costs creates an opportunity for Microsoft to position Microsoft Dynamics AX as a viable, cost-effective alternative. The cost of both migrating to Fusion Applications (with limited functionality) or creating a patchwork solution through integration with select Fusion modules may be higher than the cost of moving to Microsoft Dynamics AX. If the prospect is a current customer of Oracle E-Business Suite on SQL Server: Customers of Oracle E-Business Suite on SQL Server may be uncertain about Oracles support for its applications on SQL Server. These customers may also need to move to an infrastructure that could be more expensive and complicated. Proactively approach these customers and position Microsoft Dynamics AX as a solution to optimize their investments in SQL Server. If the prospect represents net-new business for both Microsoft and Oracle: For prospects

who are not already customers of Microsoft or Oracle, use the following sales approach: Meeting Business Requirements Companies invest in ERP to gain a competitive edge. As a result, meeting customers functional requirements is extremely important. While you should highlight product fit, avoid comparing features and functions. Instead, focus on the ability to solve business problems through the features and technology that come with Microsoft Dynamics AX, Microsoft Office, business intelligence (BI) tools, and Microsoft SharePoint. Showcase advanced collaboration features, such as the ability to link documents like purchase orders directly to Microsoft Dynamics AX and store them in SharePoint. Enhancing Industry Solutions Lead the discussion with the Microsoft strategy of providing customers with the right solution for their specific industries. Be sure to highlight your partner firms experience in the target industry. Then highlight how Microsoft implements this strategy: Offer a strong product base with broad horizontal functionality and industryspecific extensions to provide out-of-thebox functionality for large vertical segments. Encourage and certify applications developed by the Microsoft ISV community, which has deep industry knowledge to complement the features and functions of Microsoft product pillars.

How Microsoft Wins

This section includes sales guidance to help Microsoft compete effectively against Oracle EBusiness Suite. Depending on the customer conditions of engagement, use techniques that can eliminate competition and generate wins.

Sales Approaches
If the prospect is a current customer of Oracle E-Business Suite: Although Microsoft Dynamics AX offers a strong value proposition, some prospective customers may resist replacing their current Oracle E-Business Suite implementation with Microsoft Dynamics AX. To engage potential customers, discuss the confusion within the Oracle application community about the introduction of Oracle Fusion Applications. These customers have three options: Move to Fusion Applications, though the initial release may not have all of the functionality available in E-Business Suite. Loosely integrate both Fusion Applications and E-Business Suite. Page 3 | Microsoft Confidential

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 Promote the many partner solutions that have the same look and feel of Microsoft Dynamics AX. These solutions blend seamlessly with the core product, providing the benefit of industry expertise without the complexity of integrating and navigating two distinct applications. Improving BI and Decision Making Oracle has a strong BI offering through its acquisition of Hyperion. Knowing that Oracle will be highlighting its BI assets as part of the sales cycle, you should proactively discuss BI as well. Microsoft Dynamics AX delivers self-service reporting and BI capabilities that can help companies quickly access data and reduce requests to the IT department for reports and information. Microsoft Dynamics AX is built on widely used Microsoft technology and works with other Microsoft products and technologies, including SQL Server and Office applications like Excel, SharePoint and Power Pivot for Excel 2010. The BI and reporting capabilities of Microsoft Dynamics AX include control charts, report wizards, and role centers that bring customized data to individual users. In addition, Microsoft Dynamics AX utilizes Microsoft SQL Server Reporting Services through the Report Builder query tool and SQL Server Analysis Services through online analytical processing (OLAP) features. Focusing on Innovation and a Well-Defined Road Map Microsoft invests in research and development for the Dynamics productline, including a well-

defined road map that focuses on innovation, collaboration, and productivityall so that customers can implement the solution quickly and see a faster return on investment. For more information, see Microsoft Dynamics AX Statement of Direction: https://mbs.microsoft.com/partnersource/marke ting/statementofdirection/statementofdirection Compare this approach to the approach of Oracle E-Business Suite, which may receive less attention and fewer investments as Oracle promotes the Fusion Applications suite.

5. Is there a plan for migrating to Fusion Applications if I am running a non-Oracle database? 6. If I have requirements that fall outside of the Oracle Business Accelerators methodology, how will the time and cost of implementation be affected? 7. What is the structure of a typical Oracle support team? How many administrators, developers, and support personnel are there? Please provide the names of three to five companies that can validate this.

Top Questions for Oracle

Customers should ask Oracle the following questions about difficult or expensive issues that customers considering Oracle might face: 1. How many organizations like mine have used Oracle Business Accelerators as an implementation methodology? Is the methodology really a template with predefined processes and configurations?

2. Is Fusion Middleware required for integration with Oracle and non-Oracle systems? 3. Does middleware support the Oracle database, IBM DB2 database, SQL Server, and other components? If so, can I turn off portions of the middleware that support the databases I am not using? 4. Does middleware support Microsoft Windows, Linux, and IBM iSeries? If so, can I turn off portions of the middleware that support the server operating system I am not using?

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Handling Objections
This section provides common objections that Oracle may give as reasons to choose its solution instead of Microsoft Dynamics AX. Oracle Claim: Microsoft Dynamics AX is more of a midmarket solution and is not appropriate for a large, complex business. Microsoft Response: (Do not get lured into a feature/function comparison against Oracle. Focus on the specific needs of the prospect.) In key industries, customers may find that Microsoft Dynamics AX has all the necessary functionality without the overhead of extra, unnecessary features. Customers may pay more for this unnecessary functionality in terms of both initial cost and ongoing maintenance. Furthermore, Microsoft Dynamics AX 2012 has proven benchmarks to over 5,200 users. Oracle Claim: Microsoft must offer a number of third-party solutions to compensate for its lack of out-of-the-box functionality. Microsoft Response: Microsoft uses ISV solutions to bring deep industry expertise to customers. Business partners who specialize in specific industry solutions provide rich insights and leading-edge business expertise. (If the overall Oracle solution includes Demantra, G-log, or Agile, point out that these components were obtained through acquisitions and that the integration, as well as the look and feel, may not be as seamless as the Microsoft partner solution.) Oracle Claim: Oracle Business Accelerators for E-Business Suite reduce the risk, time, and cost of implementing the solution. Page 5 | Microsoft Confidential

Microsoft Response: RapidStart Services and Microsoft Dynamics Sure Step offer scalable, repeatable methodologies for implementing Microsoft Dynamics AX, helping partners reduce the risk, time, and cost of implementation.

Gartner, Inc., Magic Quadrant for ERP for Product-Centric Midmarket Companies http://www.gartner.com/technology/mediaproducts/reprints/microsoft/vol10/article22/artic le22.html Forrester, The Forrester Wave: Order Management Hubs, Q3 2010 http://www.microsoft.com/presspass/itanalyst/d ocs/08-19-10Hubs.aspx Statement of Direction for Microsoft Dynamics https://mbs.microsoft.com/partnersource/marke ting/statementofdirection/StatementofDirection. htm Microsoft Dynamics Sure Step https://mbs.microsoft.com/partnersource/partne ressentials/serviceplans/surestep/ Analyst Reports on Microsoft.com http://www.microsoft.com/presspass/itanalyst/d efault.mspx

Customer Success Stories

InFocus http://www.microsoft.com/casestudies/Case_Stu dy_Detail.aspx?casestudyid=4000006625 Network Equipment Technologies http://www.microsoft.com/casestudies/Case_Stu dy_Detail.aspx?casestudyid=4000003979 Microsoft http://www.microsoft.com/casestudies/Microsoft -Dynamics-AX-2012/MicrosoftCorporation/Microsoft-Advances-SuccessfulTwo-Tier-ERP-Strategy-with-Powerful-New-ERPSolution/4000010466

Additional Resources
Oracle Compete on Partner Source
https://mbs.microsoft.com/partnersource/sales/marke ting/competitiveinformation/OracleCompete.htm

Competitor Product Pricing

Complete list of Oracle product pricing http://www.oracle.com/us/corporate/pricing/app lications-price-list-070574.pdf Give us your feedback! Click the following link to provide feedback on this competitive guide: http://www.zoomerang.com/Survey/WEB22AVJ6 DTYVY

Operation Scenarios in Industry https://mbs.microsoft.com/partnersource/marke ting/campaigns/vertical/?r=14&l=1

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Oracle E-Business Suite vs. Microsoft Dynamics AX Competitive Guide

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