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Oracle: Is Oracle Ready to Move on SaaS? Maybe. But how does Oracle define SaaS?
We’ve commented here before about Oracle’s small presence in the SaaS marketplace, and without Oracle Siebel CRM offering, there doesn’t seem much else to mention. But part of what’s different about Oracle is their perception and thought process around what on-Demand means. Oracle President Charles Phillips has described the Oracle strategy of on-Demand as using it to provide important pre-sales exposure to Oracle product that can at some point be converted to an on-premise sale.
Typically SaaS is used to describe multi-tenanted remote hosting of applications paid for by subscriptions. on-Demand is more general than SaaS and refers to the ability to scale up and down the use of remotely hosted applications on an as-needed basis. Hosted applications, both single- and multi-tenanted, are those that are located somewhere other than where the client software consumes them. Oracle uses all three terms interchangably.
Unlike a more standard definition of on-Demand, Oracle sees outsourcing as a big component in the on-Demand equation. Rather than high-volume cookie-cutter SaaS offerings, Oracle’s vision of on-Demand is to, in effect, move an on-premise system into a remote outsourced environment, where Oracle manages maintenance and upgrade activities.
“We have been doing [on-demand] this way for nine years and this is the way our customers think about it. They can use the software themselves on-premise or they can have it on-demand. We are almost indifferent about that,” said Phillips.
