The Village View

Tuesday, October 16, 2007

Oracle buys GRC firm LogicalApps - Part II

I've been asked recently what I thought drove Oracle's acquisition of LogicalApps. I'd remind you that these are my personal thoughts only.

Essentially, Oracle was looking to fill weaknesses in its existing financial compliance functionality in E-Business Suite and PeopleSoft. EBS has limited functionality in this area, including poor Segregation of Duty automation (there is a Gartner report in which the solution was rated "caution") and incomplete internal controls management. The LogicalApps product set will increase Oracle EBS functionality in Preventative Business Controls and automated controls testing. Additionally, Oracle expands Segregation of Duties risk management for Oracle EBS and PSFT. This acquisition, however, will not bring additional compliance functionality to JDE customers. Also, given that LogicalApps was already an Oracle customer and runs on Fusion middleware, this was a, ehem, logical choice for Oracle.

My sense is that Oracle still has some integration work to do as they have various financial compliance solutions (and I'm not using GRC here, because I view financial compliance as only part of an overall GRC offering) on various app platforms. I'm going to be curious to see the roadmap for LogicalApps as well as other, existing Oracle GRC solutions.

One positive aspect of this acquisition might be that it reaffirms my decision to work in this small part of the software industry. Clearly, GRC is an area of interest to the major software vendors, and their customers.


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