Oracle has come up with new options for online application delivery, offering its E-business suite as a service hosted by a local hardware partner.
Previously its hosted application offering required customers to have a link to an Oracle facility in California, with the attendant network latency problems.
The company’s New Zealand e-business solutions manager, David Rainbow, says the latency issue was such that no local customers had taken up the remote hosting option. He’s optimistic that with New Zealand partners — which will include Compaq, Hewlett-Packard and Sun — hosting the E-business suite, customers will consider it a viable option.
“Some people have been reluctant to have data hosted in the States but we certainly have customers that want it managed for them,” Rainbow says.
The new offering means E-business suite users will be able to choose from a handful of delivery options: they can sign up for a locally hosted service, with Oracle providing application, database and system management support remotely from the US; they can choose a fully Oracle US-hosted and supported service; or they can pay a standard licence fee and manage their hardware and software themselves.
Rainbow says users who choose the first option will pay Oracle a software licence fee, a 3% premium on the licence for Oracle support and a hosting fee to the hardware provider. The appeal of such an arrangement is that application management is taken out of the customer’s hands, he says.
But that has no appeal at all for a Wellington-based finance company that tracks its 130,000 customers using Oracle’s CRM application.
“You lose control when someone is hosting your systems,” says the company’s IT manager, who spoke on condition of anonymity.
“I don’t think we’d be interested in a hosted service.”
However, he says if Oracle came to it with a business case, the company would assess whether it had merit.
“We’re not completely averse to the ASP or outsourcing model, but only for applications that are outside our scope.”