Oracle is working to expand its SAAS offerings in order to better compete against Salesforce.com, sources have told Reuters. Oracle is planning to offer human resources software online, as well as CRM applications.
BOSTON (Reuters) - Oracle Corp., the world's No. 2 business software
maker, plans to expand its small line of programs that companies access
via the Web, said a person familiar with the strategy.
The person, who was not authorized to publicly discuss the plan,
said that Oracle is developing Internet-based programs to help
businesses manage human resources functions including employee
The company is also expanding its line of customer relationship
management software, or CRM programs, which companies use to manage
sales and marketing activities, the person said.
Those CRM programs compete with ones from Salesforce.com Inc, the
biggest provider of Web-based programs, which are known in the tech
industry as software as a service, or SAAS.
SAAS is becoming increasingly popular because their makers host the
programs at their own data centers, saving customers the costs of
running them on their own computers. The approach also makes it quicker
and easier for companies to start using the new software.
Oracle has briefed some industry analysts on its plans to expand its
SaaS offerings, though it is not clear when the products will be
released, said the person who described the strategy.
A spokeswoman for Oracle declined comment.
Oracle Chief Executive Larry Ellison is a strong proponent of SAAS.
Last year, he said that Oracle's small SAAS division had turned its
Ellison is also the founder and majority owner of NetSuite Inc, a
company that sells accounting programs to small and mid-sized
businesses. He has told investors that Oracle's SAAS unit is one of its
A new Web-based human resources product from Oracle could threaten
sales of several smaller firms that have already gotten into the
market. They include Kenexa Corp, SuccessFactors Inc, Taleo Corp and
privately held Workday.
The Wall Street Journal earlier reported on Oracle's development plans.
(Reporting by Jim Finkle)??Â« Thomson Reuters 2009. All rights reserved.
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