Menu
Oracle will allow customers to swap on-premises software for cloud services

Oracle will allow customers to swap on-premises software for cloud services

The move follows a similar one by rival SAP

Oracle will allow customers to convert money they're now spending on annual support for on-premises into software subscriptions for its SaaS (software as a service) applications, in a bid to block defections to competitors such as Workday and Salesforce.com.

Dubbed Customer 2 Cloud, the program lets Oracle customers using its on-premises HCM (human capital management) and CRM (customer relationship management) software switch over to cloud versions. E-Business Suite, Siebel, PeopleSoft and JD Edwards EnterpriseOne customers are eligible.

Customer 2 Cloud also incorporates Oracle's Cloud Express rapid implementation services. Packaged integrations between on-premises and cloud applications are also available, allowing for hybrid deployment models.

The program also gives customers "a practical path for extending their on-premise applications with high value cloud applications, versus wholesale replacements," Oracle said in a statement. One scenario could see a PeopleSoft HCM customer taking some unused licenses and swapping them out for Oracle's cloud-based talent management software.

Oracle's move follows a similar one last year by SAP, which is also trying to grow its cloud business quickly and keep on-premises customers in the fold.

Customer 2 Cloud may be a response to competitive pressure, but it's also good for customers, in the view of one observer.

"Many customers need a defined methodology to go from on-premises to cloud," said analyst Ray Wang, founder and chairman of Constellation Research. "Basically, the feedback from customers not in the cloud was, how do we get there most easily?"

Customer 2 Cloud also provides "a fast way to [turn] shelfware into cloudware," said analyst Holger Mueller, vice president and principal analyst at Constellation.

This is important to vendors such as Oracle, who don't want on-premises customers considering updates or changes to their software portfolio conducting an RFP (request for proposals), according to Mueller. "It's a proactive way to get more customers live [in the cloud]," while bypassing long sales cycles that have uncertain outcomes, he said.

Chris Kanaracus covers enterprise software and general technology breaking news for The IDG News Service. Chris' email address is Chris_Kanaracus@idg.com


Follow Us

Join the newsletter!

Or

Sign up to gain exclusive access to email subscriptions, event invitations, competitions, giveaways, and much more.

Membership is free, and your security and privacy remain protected. View our privacy policy before signing up.

Error: Please check your email address.

Tags cloud computingIT managementinternetOracleservicessoftwareSAPInternet-based applications and services

Featured

Slideshows

The making of an MSSP: a blueprint for growth in NZ

The making of an MSSP: a blueprint for growth in NZ

Partners are actively building out security practices and services to match, yet remain challenged by a lack of guidance in the market. This exclusive Reseller News Roundtable - in association with Sophos - assessed the making of an MSSP, outlining the blueprint for growth and how partners can differentiate in New Zealand.

The making of an MSSP: a blueprint for growth in NZ
Reseller News Platinum Club celebrates leading partners in 2018

Reseller News Platinum Club celebrates leading partners in 2018

The leading players of the New Zealand channel came together to celebrate a year of achievement at the inaugural Reseller News Platinum Club lunch in Auckland. Following the Reseller News Innovation Awards, Platinum Club provides a platform to showcase the top performing partners and start-ups of the past 12 months, with more than ​​50 organisations in the spotlight.​​​

Reseller News Platinum Club celebrates leading partners in 2018
Meet the top performing HP partners in NZ

Meet the top performing HP partners in NZ

HP has honoured its leading partners in New Zealand during 2018, following 12 months of growth through the local channel. Unveiled during the fourth running of the ceremony in Auckland, the awards recognise and celebrate excellence, growth, consistency and engagement of standout Kiwi partners.

Meet the top performing HP partners in NZ
Show Comments