Though it already markets a project management module as part of its Oracle E-Business Suite and PeopleSoft Enterprise Service Automation (ESA) solutions, Oracle will gain extended functionality and an expanded client base by acquiring Primavera.

This move shows that Oracle expects continued growth in PPM markets, due to worldwide utility and other infrastructure needs. Primavera is a leader in energy and utility project PPM solutions, and Oracle expects companies will be looking for better tools to reduce risks of delays and overruns. Many utilities use Primavera to manage their plant and delivery infrastructure projects, and frequently interface with SAP or IBM Maximo to support enterprise asset management (EAM).

Primavera will become a new global business unit (GBU) within Oracle, concentrating on PPM, and the Primavera team is expected to operate under the same basic structure. Previous GBUs, with the exception of the Business Intelligence and Performance Management GBU, have been industry-specific. This GBU will be product- or function-based, and could portend future GBUs being based on modules, not industries.

Although not used as much in project-intensive utilities, Oracle already has a PPM solution called “Oracle Projects” as part of its E-Business Suite, and Oracle PeopleSoft ESA offers a product option for PPM-related support. Oracle’s existing PPM solutions will not fall under the new GBU structure at this time, so Oracle will need to reconcile its existing PPM solutions with Primavera by providing a clear product road map for its energy and utility customers, as well as a seamless Application Integration Architecture (AIA) integration, if it is to be considered a true part of the Oracle portfolio. Oracle is already a Primavera business partner, providing out-of-the-box Primavera interfaces to the Oracle E-Business Suite, but closer integration will now be expected.

While Oracle is committing to ongoing support, Primavera’s strategic partnerships with Oracle competitors such as SAP and IBM (Maximo) could become strained over time.

Oracle's worldwide utility marketing presence should help Primavera establish leadership in emerging economies, where Primavera has not had the same kind of success it has had with North American Utilities.

Bron: Gartner.com