Connecting to the Future

  

Continued

PHILLIPS: I think the integration that we are starting to deliver between existing products using Oracle Fusion Middleware will add significant value for customers and make good on our promise of delivering a virtual suite across all of our applications. Customers expect us to take over the task of integration, and we are just now starting to deliver prepackaged business flows built entirely on standards in a canonical model that will simplify the integration process. Customers only have to integrate an application into the platform once. Once they've tapped that dial tone, they are integrated into all other applications that have been previously connected—a one-to-many model.

PROFIT: A recent survey showed that although some customers are still confused about Oracle Fusion, those people who do say that their companies "get" it are also most likely to say that they're comfortable with the basic premise of Oracle Fusion. What's the most common question that you're hearing about Oracle Fusion, and what's your response?

PHILLIPS: I get fewer questions on Oracle Fusion since the announcement of Applications Unlimited. People are comfortable with what they have. When Oracle Fusion is available, they'll review it, but there is less of a burning need to upgrade. To the extent that they are still asking questions, they're usually about the upgrade process and how difficult it may be. But they are much less concerned with the Oracle Fusion migration issue since they have the option of staying on existing platforms.

PROFIT: How does Oracle respond to predictions that the database is becoming a commodity?

PHILLIPS: The database is getting more complex and more powerful. Only people who don't have to manage data say it's a commodity. If that were true, there are plenty of free databases out there and people would quickly move into the free house instead of paying us rent.

PROFIT: Can you talk about Oracle's approach to open source, and how it differs from the competition?

PHILLIPS: We'll leverage open source where it makes sense. We've been long-time supporters of open source products and own quite a few ourselves. We see it as an important resource among many resources we will leverage to solve customer problems. You won't see us going out and disparaging the open source community the way Microsoft does or ignoring it the way SAP does.

PROFIT: Oracle has changed a lot in the past few years, and you've had an opportunity to observe it from the outside and the inside. How do you see Oracle's position within the technology industry, both the way it's perceived and how it compares to other software companies?

PHILLIPS: Oracle always finds a way to stay on the edge and lead the next charge. We are simply doing what we always do. We have an addiction to innovation and that lies at the heart of the company.

PROFIT: In 2003, Oracle started marketing aggressively to small and medium businesses [SMBs]. What was the reason behind this move, and what special product and service offerings were created for SMBs?

PHILLIPS: We have more than 180,000 small business customers, so I can't say it's a new idea. But now that we have products that are better packaged and more-appropriately priced for the SMB market, it makes sense to add more distribution and marketing to take advantage of the opportunity. Small companies like integrated suites with fewer moving parts. That would be us.

PROFIT: What will Oracle's role be in the growing on-demand and software-as-a-service markets?