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ISVs Can Outsource On Oracle's Grid

Oracle launched a new program that lets its partners build their own virtual outsourcing businesses, the company said Monday.

Based on its "Oracle On Demand" business model, the Redwood Shores, Calif.-based software giant has extended the baseline offerings to independent software vendors (ISVs) at a fraction of the cost as part of its Oracle Technology On Demand services portfolio.

This kind of outsourcing is needed, according to Oracle execs. A recent report from market analyst firm Gartner research said businesses spend 80 percent of their IT staffing budget maintaining software and information systems. This means spending valuable time, money and resources on version upgrades, integration, implementation, migration and enhancements.

"On Demand for ISVs will offer solution providers a low-cost, Internet-based infrastructure for showcasing Oracle-based applications to their customers and prospects," Bronwyn Hastings, Oracle vice president, Worldwide Alliances & Channels, said in a statement. "By leveraging a managed and scalable infrastructure, ISVs will be able to reallocate scarce resources to ongoing investment in applications development to address customers' changing needs. It also provides a leveraged and easily accessible means to reach a larger number of customers."

The original service, which asked clients to "Let Oracle Manage Oracle," cost $150 per user per month and included disaster recovery for Oracle E-Business Suite, Oracle E-Business Suite On Demand and Oracle Learning Management Suite.

Now the database software vendor will manage the underlying infrastructure through its data center in Austin, Texas, while the ISVs build or deliver their applications on the latest Oracle technology. Oracle said the platform could be used for demos or proof of concepts, as well as to offer software as a service to customers.

Partners will also be able to tap into Oracle's PartnerNetwork -- more than 13,000 companies that provide enterprise software based on Oracle software. The program includes access to Oracle's premier products, education, technical services, marketing and sales support.

Pricing for Oracle On Demand for ISVs is broken down into specific plans. The Database On Demand package starts at $2,000 per-processor per-month. This premium package includes the Oracle Database, Oracle Enterprise Manager, Internet Developer Suite, hardware and other management tools.

Oracle's Application Server On Demand costs $1,000 per processor per month and consists of Oracle Application Server, Configuration Management Pack, hardware and other application server management tools. For $10 Per user per month, an ISV can run Oracle's Collaboration Suite On Demand, which incorporates Oracle Collaboration Suite as well as e-mail, files and Web conferencing. Software license and support for all Oracle technology is priced separately.

One of the early adopters of Oracle On Demand for ISVs is Infopia, an e-commerce software developer. With more than 120 customers, Infopia provides applications that help small companies securely sell products and services in online, multi-channel marketplaces such as eBay and Amazon. While Oracle manages the Oracle technology platform and handles all upgrades and updates, Infopia has a remote link into its customers' environments and can manage its own applications.

Oracle's other On Demand partnerships include AlphaSmart, Mercury Computer Systems, Cabot Microelectronics, Network Appliance, Foundstone, Paradigm Wireless Systems, Three Rivers Pharmacueticals, Kvaerner Power and the Statue of Liberty-Ellis Island Foundation.