Automated Revenue Management – Oracle

OLD - UPDATE - We initiate coverage of Oracle Revenue Management Cloud in the Automated Revenue Management market with an MGI 360 Rating of 47 and a NEUTRAL outlook. As one of the largest providers of financials and ERP software for mid to very large enterprises, Oracle has been selling ARM functionality in various forms for over ten years. Yet the current ARM capabilities as embodied in Oracle Revenue Management Cloud (“ORMC”) are modest at best. ORMC is part of the ERP Cloud and loosely integrates with the E-Business Suite (EBS) and Oracle Financials Cloud. Integration across the Oracle “clouds” or to outside systems is uneven and even basic integrations (e.g., ORMC to Order Management Cloud) are not a given. As a niche application within the Oracle universe, ORMC has not received the attention, resources or investment on par with its competitors or other parts of the Oracle portfolio. Smaller, more agile competitors are increasing their functionality and price/performance lead vs ORMC. Extremely profitable, Oracle has a vast global channel and is one of the most recognizable global brands. Given Oracle’s current focus on profitability and fragmented approach to product management, ORMC’s near-term trajectory is unlikely to change. Use Case: Committed Oracle finance customers willing to engage professional services resources to create a highly tailored solution.