What is Enterprise Software?

I have heard the term “Enterprise Software” discussed much throughout the tech industry, and especially those in sales.

As a marketing agency owner that typically services small to medium-sized business, I don't have a ton of past experience with enterprise software, so I'm approaching this as a complete beginner, and writing this for beginners that want to understand what it is, for the lay of the land.

So let's begin researching…

So What is Enterprise Software?

Here are some definitions from trusted entities:

AWS defines enterprise software as:

“Enterprise software, or enterprise application software, is computer software used by organizations rather than individual users. Common types of enterprise software include contact centre software, business intelligence, enterprise communication, inventory management, marketing tools, online payments, and enterprise resource planning. Organizations use enterprise software to run, scale, and optimize their day-to-day operations and processes, as well as build their own unique applications.”

Wikipedia defines it as:

Enterprise software, also known as enterprise application software (EAS), is computer software used to satisfy the needs of an organization rather than individual users. Such organizations include businesses, schools, interest-based user groups, clubs, charities, and governments. Enterprise software is an integral part of a computer-based information system.

Enterprise software handles a number of operations in an organization, for example to enhance the business and management reporting tasks, or support production operations and back-office. The systems must process the information at a relatively high speed.[1]

Examples of enterprise software companies:

These are some classical enterprise software companies that are large beasts, selling and implementing enterprise software for enterprise clients.

  • Oracle
  • SAP
  • IBM
  • ServiceNow
  • Salesforce

Large Consumer Tech Companies with Enterprise Arm:

The following are tech companies that also have a strong enterprise software division.

  • Microsoft
  • Google Cloud
  • Amazon AWS
  • Dell
  • Adobe
  • HPE

Examples of Crossover Collaborations Between Companies

Unsurprisingly, corporations want different types of enterprise software to work well together. Here are some top collaborations.

  • AWS for SAP – run SAP software on AWS with a ready-built platform. “Get more flexibility and value out of your SAP investments with the world’s most secure, reliable, and extensive cloud infrastructure, 200+ AWS services to innovate, and, purpose-built SAP automation tooling to reduce risk and simplify operations.”
  • Oracle on AWS – run Oracle databases on AWS. “Transform your Oracle ERP applications by migrating and modernizing with AWS. Leverage over 10 years of experience with mission-critical Oracle applications like E-Business Suite, Peoplesoft and JD Edwards in the cloud to reduce TCO, increase efficiency, drive innovation and transform customer experiences.”

What should sales professionals know about enterprise software?

If you're a salesperson, not already in the enterprise

What should college students or graduates know about enterprise software companies?

Case Study: Oracle Aqcuisition of Peoplesoft

Oracle acquired Peoplesoft in 2004, and immediate slashed 50% of the workforce.

This was an aggressive move, by an aggressive acquirer, Oracle.

This has 1980s through 2000s corporate culture written all over it.

From Wikipedia:
“Beginning in 2003, Oracle began to maneuver for control of the PeopleSoft company. In June 2003, Oracle made a $13 billion bid in a hostile corporate takeover attempt. In February 2004, Oracle decreased their bid to approximately $9.4 billion; this offer was also rejected by PeopleSoft's board of directors. Complicating Oracle's takeover attempt was PeopleSoft's poison pill, allowing their customers to potentially receive refunds of 2–5 times the amount they had paid in the case of a takeover.

Later that month, the U.S. Department of Justice filed suit to block Oracle, on the grounds that the acquisition would break antitrust laws. In September 2004, the suit was rejected by a U.S. Federal judge, who found that the Justice Department had not proven its antitrust case. In October, the same decision was handed down by the European Commission. Although Oracle had reduced its offer to $7.7 billion in May, it again raised its bid in November to $9.4 billion.

In December 2004, Oracle announced that it had signed a definitive merger agreement to acquire PeopleSoft for approximately $10.3 billion. A month after the acquisition of PeopleSoft, Oracle cut over half of PeopleSoft's workforce, laying off 6,000 of PeopleSoft's 11,000 employees.”

The New York Times covered the acquisition, adding more context:

“The deal would make Oracle, which is the leader in the corporate database business, the second-largest maker of software that companies use to manage their finances, human resources, sales and customer relations. SAP of Germany is the No. 1 company in the $25 billion a year business software industry. PeopleSoft, which acquired J.D. Edwards in August 2003, is No.2, and Oracle has been third in the market.

By acquiring PeopleSoft, Oracle hopes to move closer to becoming the Microsoft of corporate data centers.

Just as Microsoft has expanded its dominant position in desktop computing by offering word processing and spreadsheet programs that run on its Windows operating system, so Oracle hopes to add layers of software that are tied to its mainstay product, the Oracle database systems.

“Look at Microsoft's strategy — we're not that different,” Mr. Ellison said in an interview yesterday. “We're trying to do the same thing in the enterprise market that Microsoft has done on the desktop.””

Last Updated on November 3, 2023 by Joe

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