Oracle leaks Fusion HCM, Taleo pitches and pricing

Oracle leaks Fusion HCM, Taleo pitches and pricing

Summary: An Oracle presentation to partners outlining the Fusion HCM and Taleo sales and pricing plans---complete with discounts---is being passed around enterprise circles.

SHARE:

Oracle posted its human capital management presentation to partners, outlined discounts, availability and sales messaging and then pulled the document from its site. However, Google has a long memory and Oracle's presentation is being passed around enterprise circles.

And why not? Oracle's presentation is pretty handy if you're negotiating a deal human capital management (HCM) with the software giant for Fusion apps or its acquired Taleo unit. The presentation also highlights what's likely to be on the Fusion HCM-Taleo menu for Open World in October.

Oracle has tried to put the presentation, which was surfaced by PC World Tuesday afternoon, back in the bottle, but a detailed Google search can serve up the document pretty easily. Google has a long memory and given the Java lawsuit it's doubtful Oracle can get through the voicemail prompts to request that the search giant nuke it.

In a nutshell, Oracle Open World is likely to be a bit of an HCM coming out party for the Taleo-juiced go-to-market strategy. Oracle's acquisition of Taleo was part of a bevy of HR focused acquisitions in recent months. SAP bought SuccessFactors and IBM acquired Kenexa this week. Meanwhile, Salesforce.com is dabbling in HR a bit even though it's a bit fuzzy what it means for its long-term relationship with Workday, which is likely to go public soon. 

 

orcl082912b

In any case, I've gone through the 48 page document and here are the high-level takeaways:

  • In a presentation dated this month (pricing as of May), Oracle walked through its go-to-market strategy and "partner playbook" for Fusion HCM and Taleo.
  • Fusion HCM tools are on "controlled availability" and "require development approval through Oct. 2012. Taleo performance and compensation are also on controlled availability and require development approval.
  • The basics are that Oracle Fusion HCM and Taleo are aimed to sell as a unit and on an individual basis.
  • Oracle's aim is to sell Fusion clients Taleo (no surprise there) and partners will differentiate with value added services.
  • Oracle's differentiators revolve around end-to-end talent management and linking payroll and talent with core HR and benefits.
  • There are numerous "sales plays." For instance, Oracle told partners they can lead with the Fusion HCM Suite and cited UBS, Fox and Societe Generale as examples. partners can also pursue new performance management deals by mixing and matching. In this example, Oracle notes selling Fusion Core-HCM and adding on Fusion Performance Management or selling PeopleSoft and doing the add on. Selling Taleo Recruiting and then adding on performance management. Naturally, additional Taleo seats can be sold to existing customers.

 

orcl082912
  • Oracle's growth plan revolves around expanding Taleo internationally, cross-selling and targeting staffing service providers. Oracle plans to allow partners to specialize Taleo in the fiscal third quarter of 2013.
  • The roadmap for HCM includes integration with Taleo and PeopleSoft, E-Business Suite and Fusion HCM. Ultimately, there will be a "superset performance product" that has the best of Fusion HCM and Taleo.
  • Pricing includes automatic discounts as well as discretionary discounts up to 10 percent. A 30 percent discount is available on a promotional basis in "carefully defined, approved cases."
  • Roughly speaking, Taleo software modules will run you anywhere from 50 cents a month to $2 a month (Taleo Recruiting). Taleo recruiting assessment content will run you more ($2 to $4 a month per user). The formula is to take that selling price and the number of employees multiply the automatic discount based on volume and then discretionary discounts. I'm no enterprise software negotiator, but if you have 10,000 or more seats there's a lot of discounting to be had.
  • Fusion HCM's base cloud service is $8 a month per hosted employee and Fusion Global Payroll is another $5 a month per head. Most other services and modules are $2 a month with many discounted to $1. At a glance it appears that Fusion HCM cloud modules are discounted from $2 to $1 a month based on whether they overlap with Taleo offerings.

Topics: Enterprise Software, Oracle

Kick off your day with ZDNet's daily email newsletter. It's the freshest tech news and opinion, served hot. Get it.

Talkback

0 comments
Log in or register to start the discussion