Wednesday, December 16, 2009

Oracle in Insurance

By the close of 2009 Oracle had acquired 56 companies--30 of which filled out Oracle's applications portfolio, and 26 of which spruced up its technology lines of business. As Oracle’s marketing team points out 100 of Fortune 100 uses Oracle and in Insurance 20 out of Top 20 uses Oracle Applications.
The strategy has given Oracle broader market leverage with a full stack of Technologies and also the domain specific offerings.

How does it matter to Insurance?

It has been over a year since Oracle created a separate global business unit focusing on the Insurance industry. It has provided some sense of how Oracle wants to integrate the acquired assets and the future direction – at least on the paper. Oracle has a full set of product servicing Insurance, starting from a Policy Admin system, Claims system, Rating, Financial/Billing, CRM, document generation, Data warehousing, Reporting to name a few. It also has a complete set of middleware technologies – thanks to BEA and Sun.
Oracle is already showing results. It has closed many deals with likes of Marsh and Farmers to set the tone for the coming year.

My take – I think, Oracle is serious contender in the Insurance industry. It's industry focus is a BIG PLUS.
It will be of advantage to mid-size insurance companies to be an 'Oracle Shop' and leverage synergies and volume discounts. Also, as Oracle has presence in almost every big organization, it will definitely penetrate more into many of those. I think, it’s time to stop ridiculing the Oracle for their aggressive acquisition strategy and start paying attention to how it can be leveraged.

- Amit Unde


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