This success of Applications Unlimited is more strategic through. Not only has it protected short-term revenues over the past years, but it has also laid the foundations for future growth from two perspectives. Firstly, it has ensured customer retention, so that those customers are still around to be the target of future cross-selling and up-selling. Secondly, it has generated the strong margins from support and maintenance that have been the economic engine of Fusion funding the massive R&D investments.
The Fusion party is warming up
When Project Fusion was first initiated it was certain that this would be a long programme, with outputs being delivered over a period of many years. Last year we began to see the initial delivery of Fusions applications, built on the ever strengthening Fusion middleware portfolio. The deliveries last year were more akin to edge case applications rather than backbone applications such as ERP, HCM, CRM, SCM and PLM. This year will see the delivery of Fusion applications ramping up considerably. Invitations to the Fusion parties are already written and the seating plan for the guests is well underway.
Expect to see significant amounts of Oracle marketing and development focus during 2009. With product launches, customer testimonials from early adopter programmes, and a host of other Fusion-related noise. However, care should be taken when setting revenue expectations from these new Fusion products, especially the Fusion applications. New business applications take time to gain market adoption and we dont anticipate the real revenue acceleration to come until 2011 or later. Early success can and will be found by Oracle, but customers will move at their own pace, as is right.
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