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

Join the Good Gear Guide newsletter!

Error: Please check your email address.

Tags Internet-based applications and servicesservicesSAPsoftwareIT managementcloud computinginternetOracle

Our Back to Business guide highlights the best products for you to boost your productivity at home, on the road, at the office, or in the classroom.

Keep up with the latest tech news, reviews and previews by subscribing to the Good Gear Guide newsletter.

Chris Kanaracus

IDG News Service
Show Comments

Essentials

Lexar® JumpDrive® S57 USB 3.0 flash drive

Learn more >

Microsoft L5V-00027 Sculpt Ergonomic Keyboard Desktop

Learn more >

Mobile

Lexar® JumpDrive® S45 USB 3.0 flash drive 

Learn more >

Exec

Lexar® JumpDrive® C20c USB Type-C flash drive 

Learn more >

Audio-Technica ATH-ANC70 Noise Cancelling Headphones

Learn more >

HD Pan/Tilt Wi-Fi Camera with Night Vision NC450

Learn more >

Lexar® Professional 1800x microSDHC™/microSDXC™ UHS-II cards 

Learn more >

Budget

Back To Business Guide

Click for more ›

Most Popular Reviews

Latest News Articles

Resources

PCW Evaluation Team

Michael Hargreaves

Windows 10 for Business / Dell XPS

I’d happily recommend this touchscreen laptop and Windows 10 as a great way to get serious work done at a desk or on the road.

Aysha Strobbe

Windows 10 / HP Spectre

Ultimately, I think the Windows 10 environment is excellent for me as it caters for so many different uses. The inclusion of the Xbox app is also great for when you need some downtime too!

Mark Escubio

Windows 10 / Lenovo Yoga

For me, the Xbox Play Anywhere is a great new feature as it allows you to play your current Xbox games with higher resolutions and better graphics without forking out extra cash for another copy. Although available titles are still scarce, but I’m sure it will grow in time.

Kathy Cassidy

STYLISTIC Q702

First impression on unpacking the Q702 test unit was the solid feel and clean, minimalist styling.

Anthony Grifoni

STYLISTIC Q572

For work use, Microsoft Word and Excel programs pre-installed on the device are adequate for preparing short documents.

Featured Content

Latest Jobs

Don’t have an account? Sign up here

Don't have an account? Sign up now

Forgot password?