What’s happening at Oracle isn’t isolated. It is a symptom of what looms largely ahead for the information technology industry.
According to the Wall Street Journal's Don Clark and Steve D. Jones in WSJ's CIO Journal, Oracle blames its sales force for the decrease in sales…WOW! But, it’s true. Oracle, and the other technology companies who have been kicking everyone else around, have made their bread and butter selling to IT leaders. These IT leaders are also by definition, "leaders in IT." As buyers, they understand and can translate the bits and bytes of technology offerings. They make the final purchase decisions and oversee implementation and support. They also get to be their own judge and jury by defining their own success criteria, which are typically the factors most relevant to IT (uptime, response rates, etc.).
With technology solutions migrating from in-house applications which are purchased and managed by the IT department, to cloud and other delivery platforms outside the data center, purchase and evaluation decisions are being made by the business unit leaders the IT leaders have traditionally supported. And also by definition, "leaders in business" have a completely different way of analyzing, managing, and buying the services that support their business. My favorite quote so far which highlights the difference between IT and the new untraditional buyers of technology comes from Michael Hickins, the Editor of The Wall Street Journal's Morning Download, “Indeed, many of them are heads of marketing who used a credit card to pay for cloud based marketing automation or reputation management applications." According to Nucleus Research Inc. analyst Rebecca Wettemann, "Among that customer set, 'there’s some trepidation' about dealing with Oracle." Again, WOW!
Change of this magnitude and pace may rewrite the entire IT ecosystem and power structure. Oracle out, Workday in? Not yet sure where to place the bets, but the opportunity couldn’t be bigger for those who can translate the facts and figures of technology services into a vision that inspires the hearts, souls, and ROI targets of business (versus IT) buyers. As such, I will be sure to use my AMEX to pay for our new IT system and make sure I get all my Delta Frequent Flier miles too.