Oracle Gives Customers A Taste of 'Fusion' Tools
October 14 2009 - 9:18PM
Dow Jones News
Oracle Corp. (ORCL) partially lifted the veil on its next
generation suite of business applications, dubbed Fusion,
Wednesday, and talked about the database and software giant's
increasing interest in "cloud" technologies.
Fusion is the name for a number of business software tools which
tie together the best technologies from the numerous acquisitions
Oracle has made in recent years.
Oracle has been working on the project for over four years,
since the Redwood City, Calif., company completed its $10.3 billion
acquisition of Peoplesoft Inc., a human relations software company
it bought in 2005.
Over the past five years, Oracle has spent well over $30 billion
acquiring companies to build out its portfolio of business
tools.
"It's a big project and we've been working on it for a long
time," Oracle's Chief Executive Officer, Larry Ellison, said at a
user conference for Oracle customers in San Francisco Wednesday, as
he showed demos of the tools. Ellison said that the applications
were "code ready," meaning the software was essentially ready to
ship but was being tested and checked for bugs. The applications
would launch in 2010, he said.
Though it is unclear exactly how much the launch of Fusion will
contribute to Oracle's revenues, its release is regarded by
analysts as a significant potential revenue driver. Oracle charges
a one-time fee for initial purchase of a software package and
offers subsequent maintenance contracts on its products.
Ellison said Fusion would include updates to some existing
Oracle products in areas such as sales ledger. But Oracle was also
branching out into new areas, such as "talent management," which
helps human resources workers figure out the best staff to perform
particular roles, or "territory management," assigning sales staff
to appropriate geographic territories.
Fusion will also be available on an off-premise or "cloud"
basis, Ellison said.
Oracle's new-found commitment to including "cloud" or hosted
computing functionality into its products is striking, given
Ellison's strongly expressed skepticism about it in the past, and
underscores the growing centrality of the technology.
Many software companies are experimenting with cloud computing,
a broad term for a shift towards paying for technology on a
subscription basis, storing information on large servers and
accessing the data via the Internet. But just last September,
Ellison described the trend as "gibberish" and expressed skepticism
as to whether companies could make a profit from cloud computing.
More recently he has softened his view, launching some "cloud"
based products.
Oracle also previewed a new set of tools Wednesday which would
allow remote diagnostics to be completed on customers systems,
based partly on comparing the performance of their software with
other customers.
Ellison, in several public appearances during the week, has
talked enthusiastically about Oracle's pending acquisition of Sun
Microsystems Inc. (JAVA), a server and storage maker, in a $7.4
billion deal.
At the user conference, Ellison has been working hard to
convince Sun's customers that Oracle, which is moving into the
hardware business for the first time in a significant way through
the acquisition, will continue to develop and support Sun's
products.
The deal has been held up by European anti-trust regulators, who
have expressed concern that the deal could lessen competition in
the database market.
-By Jessica Hodgson, Dow Jones Newswires; 415-439-6455;
jessica.hodgson@dowjones.com