Oracle Systems Corporation is a database management software company that found success in the 1980’s from being an innovator in multiplatform software development. Oracle’s business strategy focused on building its technical expertise and customer service to provide performance standards that could not be matched by competitors. Oracle adopted a first mover competitive advantage when it was the first company to deliver multiple-interface software along with a range of accounting applications - all at record-setting speeds. An incentive-driven sales force was established in order to market to large corporations that would benefit the most from its software. In return, Oracle saw growth rates as sales increased by nearly 700 million dollars from 1988 to 1990. Oracle’s key successes and risk factors can both be traced to their marketing and R&D costs, as well as expanding licensing agreements with hardware manufacturers and value-added resellers (VARs). The first mover advantage that Oracle established with its software allowed the company to venture into a wide arrange of services such as maintenance, consulting, and systems integration before its competitors. These services created a company that could specialize in both product quality and customer service. This instant expansion also came with its own set of problems. Customer satisfaction dropped due to an inability of the sales force to adapt to new territories and new software was being criticized for a number of bugs, ultimately attributed to premature release dates. Oracle’s biggest key success, as well as risk factor, was its licensing agreements made with users, manufacturers, and VARs. Oracle was able to benefit initially from its strong revenue stream, but the accounting issues behind the recognition of these contracts would lead to another set of problems. The key accounting policy in regards to