OPINION: We are reducing the rating of Oracle BRM in the Billing Management Market from 66 to 63 and maintain a Neutral outlook. The overall decrease in rating stems from the loss of one point each in Strategy and Finance and fractional reductions in other dimensions. While Oracle BRM continues to benefit from strong management and deep channels, the product has seen few (if any) updates, and there does not seem to be a strategy for either refreshing BRM or retiring and replacing it. The reduction in the company’s Finance score reflects current Oracle operating results. We reiterate our expectation that BRM will not make a transition to a multi-tenant SaaS model. It remains vulnerable to client defections, and we have already seen large customers exploring alternatives with greater agility. Current BRM customers satisfied with their combination of price, functionality, and speed are unlikely to migrate from the company, but enterprises needing an agile solution are looking at other options, and we expect minimal new customer additions for BRM. Oracle is a likely acquirer in the Billing Management market.
Oracle Corp. is a dominant supplier of software, hardware, and services to Global 2000 organizations worldwide. The company entered the Billing Management market through an acquisition of Portal Software in 2006. Oracle Billing and Revenue Management (BRM) solution is targeted at large enterprises in industrial, high-tech, and utility companies. A separate offering, Communications Billing and Revenue Management (not evaluated here), is aimed at the communications provider market.
COMPETITORS: Aria Systems, MetraTech, Monexa, Orga Systems, RedKnee, and SAP. Oracle’s peer group includes 15 companies.
