According to the Wall Street Journal, SAP AG has announced that it plans to provide support to Oracle’s product at a far cheaper price than that of Oracle. Tomorrow Now Inc, a subsidiary of SAP will be providing support for that of Siebel systems, which Oracle had acquired as early as this year. The announcement came on the wake of the scenario, that Oracle has been charging too fat a price for support and up gradation. Companies who had acquired Oracle are thinking or forestalling further expenditure on its up gradation, the result being that companies like SAP are using these opportunities to its advantage and offering support at almost half the price as that of Oracle.
Oracle must learn from other companies and try to provide a competitive pricing strategy. Support and up gradation are such money making market, that Oracle must at once realise the situation and reverse its pricing strategy as far as technical support and up gradation are concerned.