How can Oracle ERP system reduce the total cost of ownership

i have read a report that describe the advantages of using Oracle ERP system in different organizations ; it is mentioned that
"+Oracle’s ERP solution suite helps customers achieve 30-80% lower total cost of ownership, benefit from a predictable cost model, and reduce risk+".
So does this means that Oracle ERP system reduce the total cost of ownership because it provides cheaper price comparing to other ERP providers, or it is meant that using Oracle ERP system will reduce the total cost of ownership for other assets in the organization by 30-70% ?
Thanks

My thoughts:
1) Oracle ERP (or any ERP) typically replaces numerous applications. Each of those applications needed separate licensing fees, separate support mechanism, and separate employees in your organization to support them. By consolidating into one, it is easier to support it.
2) Normally, Oracle ERP is cheaper than SAP but it certainly not the cheapest ERP in the market. There are some smaller ERPs which are cheaper but may not offer the breadth that Oracle offers. In fact, Oracle offers a small business ERP that is quite cheaper than EBS.
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