The Village View

Tuesday, November 21, 2006 wakes up Oracle On Demand

Following on the heels of's positive earnings announcement (61k net new subsribers, $130M in revenue) Oracle issued a press release on Nov 16, 2006 claiming Oracle On Demand had surpassed 1.7 million users.

Dan Farber of ZDNet does a good job of deconstructing this claim (suprise! it's not quite what it seems).

Oracle issued a press release stating that it has more than 1.7 million users of Oracle On Demand services across more than 2,200 companies. Note that Oracle doesn’t say that it has the 1.7 subscribers.The 1.7 million figure includes subscriptions, managed applications, and software management consulting services.

Rottler defined Oracle On Demand as anything where Oracle has operational ownership for a customer software environment, which doesn’t include any services that the company might provide to customers running their own IT.

The majority of on demand revenue is coming from Oracle-hosted versions of Oracle E-Business Suite, PeopleSoft Enterprise, JD Edwards Enterprise One and World, Oracle Collaboration Suite, Oracle Database and Fusion Middleware, Retek, ProfitLogic and G-Log, as well as consulting services associated with on demand applications.

Previous to this release, Oracle had not done a lot of On Demand messaging (exception being a recent PeopleSoft Enterprise On Demand press release).

Here on are some thoughts on how I saw Oracle's messaging prior to last week's press release:

Oracle had been relatively quiet
  • No mention during earnings call
  • Minimum sales collateral and case studies; mostly qualitative information.
  • Few direct attacks on SAP CRM On Demand

Industry analysts I spoke with noted few claims
  • Not a lot of information or opinion on Oracle On Demand
  • Noted increased Oracle messaging on hosted solutions – branding as “On Demand”
  • Minimal anti-SAP claims heard (This latest press release strikes me as a reaction/attack on [and it's customers and prospects] much more than on SAP)
Minimal press coverage
  • October press release announced “general availability” of PeopleSoft Enterprise On Demand and Oracle On Demand for Siebel CRM
  • First press release in months concerning hosted solutions
  • Last Siebel CRM On Demand press release that I could find was issued in April