But the dual effort sets up a long-term problem of keeping multiple product lines innovative and competitive with limited resources, says Jim Holincheck, analyst with research firm Gartner. The dilemma is exacerbated by Oracle’s ongoing shopping spree, in which it has swallowed up multiple software firms over the past several years.
"As Oracle continues to acquire more companies, it becomes more and more challenging," Holincheck says.
Oracle, though, argues it is up to the challenge. At its recent user conference in San Francisco, it outlined planned improvements in its existing product lines even as it touted the virtues of the coming Fusion applications. A keynote presentation by Oracle senior vice president Ed Abbo, for example, indicated that PeopleSoft Enterprise 9.1 will feature innovation in "integrated talent management." Integrated talent management, which refers to closely linking key HR tasks such as performance management and compensation management, is one of the hottest areas of HR software.