ASP Outsourcing Non-Existent as an E-Business Strategy.

Business Editors

ATLANTA--(BUSINESS WIRE)--Aug. 22, 2000

Aberdeen Group & Oracle Applications Users Group Uncover Industry

Trends at OAUG Spring 2000 Conference in Philadelphia

Aberdeen Group, an IT consulting and market strategy firm, and the Oracle(R) Applications Users Group (OAUG)(R), the largest independent Oracle applications users community, today announced the results of the research conducted among Oracle applications users attending the 10th Annual OAUG North American Spring Conference.

Key among the findings was the fact that ASP outsourcing as a strategy to implement e-business applications is virtually non-existent among Oracle applications users. Aberdeen Group and the OAUG intend to explore the issue further, but lack of information regarding ASP models and how they work, risk involved with loss of control and huge investments already made in IT infrastructure and personnel were all cited as reasons to choose not to outsource e-business applications through an ASP.

Additional results include: a majority belief that while ASPs are not a viable strategy for reducing costs, ASPs do reduce demand on IT resources; ranking ERP-financials as the most important enterprise application software for Oracle applications users, both in terms of investments already made and upcoming application investments for the year 2000; a majority belief that e-business is a defensive strategy and essential to protecting revenues and market share.

"The membership of the Oracle Applications Users Group offers tremendous opportunity to learn about Oracle's products from the consumer side," said Edward Black, senior vice president of western operations for Aberdeen Group. "Partnering with the OAUG has allowed the Aberdeen Group first-hand access to previously untouched sources of information and has revealed fascinating, and sometimes surprising, results."

"The power of the OAUG as the largest independent community of Oracle applications users lies in our ability to make our collective voice heard," said OAUG Executive Director Jim Collins. "Aberdeen Group's continuing research is a welcomed addition to the extensive educational and networking opportunities we provide our members in our efforts to increase the membership's knowledge and understanding of Oracle applications, and to communicate these issues to Oracle Corporation."

Demographics of the survey participants reveal that 54% of the companies represented claim more than 2500 employees and 36% report annual revenues of over $1 billion. Industries represented in the survey include: Real Estate; Brokerage; Hotel/Travel; Agriculture; Physicians/Healthcare; Banking; Non-Professional Services; IT Hardware; Non-Profit; Transportation; IT Software; Aerospace; Insurance; Wholesale/Retail Trade; Telecom; Education; Utilities; Professional Services; Government; IT Professional Services; Process Manufacturing; and Discrete Manufacturing.

The two-year agreement between Aberdeen Group and the OAUG also includes surveys at semi-annual North American conferences, including the Fall 2000 Conference in Honolulu, October 22-26, 2000 and annual European and Asia/Pacific conferences, including the Asia/Pacific conference in Brisbane, Australia, November 12-15, 2000.

About Aberdeen Group

Founded in 1988, Aberdeen Group provides IT consulting and market strategy advice to the IT supplier community. Steeped in technology and armed with end-user field research, Aberdeen focuses on answering clients' critical business and technology questions in the context of the Internet economy and across the product life cycle. Headquartered in Boston, Massachusetts, Aberdeen Group has offices in Palo Alto, California, and Amsterdam, The Netherlands. Aberdeen is located on the Web at www.aberdeen.com.

About Oracle Applications Users Group (OAUG)(R)

Oracle Applications Users Group (OAUG)(R) was formed in the San Francisco Bay Area in May 1990 when 32 Oracle(R) Applications users gathered to create an independent forum for the exchange and expression of information concerning the effectiveness of Oracle Applications. At that time, members agreed that the OAUG would remain an independent voice, promoting education, networking, communications and information sharing and opened a dialogue with Oracle representatives about product development, quality and support.

With a wide range of activities, such as conferences, publications, affiliated group events, and a variety of member services, the OAUG works to increase the members' knowledge and understanding of Oracle Applications and to communicate these issues and needs to Oracle Corporation.

Today, the OAUG has more than 2,200 member organizations worldwide, including more than 25 of the Fortune 100 companies, and representing diverse backgrounds, industries and geographic locations. Members include end users, service providers, hardware vendors, and third-party software solution providers, and represent 60 affiliated geographical and special interest groups from around the world.

The OAUG holds semi-annual conferences in North America each spring and fall and annual European and Asia/Pacific conferences. Over the past eight years, conference attendance has increased dramatically with the 2000 Spring Conference attracting more than 7,600 attendees.

For more information on the OAUG, visit their Web site at www.oaug.org.