Oracle Lets Companies Keep Hosting Close To Home - InformationWeek

InformationWeek is part of the Informa Tech Division of Informa PLC

This site is operated by a business or businesses owned by Informa PLC and all copyright resides with them.Informa PLC's registered office is 5 Howick Place, London SW1P 1WG. Registered in England and Wales. Number 8860726.


Oracle Lets Companies Keep Hosting Close To Home

Customers can run apps on in-house hardware, but some are still leery of giving up control

Oracle is trying harder to sell businesses on its vision of the future, in which software is delivered as a service via the Web. The vendor last week expanded deployment options for E-Business Suite Online, a hosting service for its enterprise resource planning, customer-relationship management, and E-business applications. It's also tightening a relationship with NetLedger Inc., an application service provider in which Oracle CEO Larry Ellison owns a majority stake, to compete with Microsoft and Intuit for the small-business audience. NetLedger's accounting applications are now available via to businesses with fewer than 100 employees.

For larger companies, Oracle now offers application, database, and systems management services, administered remotely, letting customers house and manage the servers on which its E-Business Suite Online apps run. Oracle says most software will be delivered as a service within 10 years because that approach lowers maintenance costs. The monthly fee for the service is 3% of software license costs for remote hosting on in-house hardware or 5% of those costs if the hardware is housed at Oracle.

But some customers say that being in charge of the hardware isn't enough. "Software as a service is out of my control," say Pete Sattler, CIO of SPX Corp., a diversified manufacturer in Muskegon, Mich. "I have to continue on their maintenance, and they may do upgrades I don't need."

Since launching in 1998, Oracle's online services have attracted just 125 customers, and been plagued by management and customer turnover as well as schizophrenic relationships with ASPs. "That's not a real good track record," says AMR Research analyst Dave Boulanger. ASPs, including AppShop and Corio, host Oracle applications, but Ellison said last week that such companies "were doomed to failure."

We welcome your comments on this topic on our social media channels, or [contact us directly] with questions about the site.
Comment  | 
Print  | 
More Insights
State of the Cloud
State of the Cloud
Cloud has drastically changed how IT organizations consume and deploy services in the digital age. This research report will delve into public, private and hybrid cloud adoption trends, with a special focus on infrastructure as a service and its role in the enterprise. Find out the challenges organizations are experiencing, and the technologies and strategies they are using to manage and mitigate those challenges today.
What Becomes of CFOs During Digital Transformation?
Joao-Pierre S. Ruth, Senior Writer,  2/4/2020
Fighting the Coronavirus with Analytics and GIS
Jessica Davis, Senior Editor, Enterprise Apps,  2/3/2020
IT Careers: 10 Job Skills in High Demand This Year
Cynthia Harvey, Freelance Journalist, InformationWeek,  2/3/2020
Register for InformationWeek Newsletters
Current Issue
IT 2020: A Look Ahead
Are you ready for the critical changes that will occur in 2020? We've compiled editor insights from the best of our network (Dark Reading, Data Center Knowledge, InformationWeek, ITPro Today and Network Computing) to deliver to you a look at the trends, technologies, and threats that are emerging in the coming year. Download it today!
White Papers
Twitter Feed
Sponsored Live Streaming Video
Everything You've Been Told About Mobility Is Wrong
Attend this video symposium with Sean Wisdom, Global Director of Mobility Solutions, and learn about how you can harness powerful new products to mobilize your business potential.
Sponsored Video
Flash Poll