Oracle takes another look at ASP

$1bn in revenue in five years time?

By Tony Hallett, 22 March 2002 08:00

NEWS Oracle has made a renewed push to take advantage of the application service provider (ASP) model of outsourcing, in the hope that companies will let it look after their software. The ASP market hasn't had a big impact on the way most businesses use software but Oracle wants to increase revenue from providing such a service. Oracle CFO Jeff Henley has said the company could see $1bn in annual revenue from such outsourcing in five years, writes the FT. Currently it makes less than $50m a year this way. Others doubt whether Oracle or any other large software vendor can rely on the revenue stream to help in a tough sales climate. Fees would be an additional 5 per cent of licence fees to customers who use Oracle equipment and 3 per cent extra for those using their own infrastructure. More on Oracle and the ASP model:
The big Oracle swindle?
http://www.silicon.com/a52167
Oracle
named and shamed for security problems
http://www.silicon.com/a52058
Oracle
starting to feel the strain
http://www.silicon.com/a52049
Ellison
leaving on a jet plane
http://www.silicon.com/a51925
Is
Oracle 11i online a winner?
http://www.silicon.com/a50805
ASP:
Reports of a dying breed
http://www.silicon.com/a46246

Post your comment

In order to post a comment you need to be registered and logged in.

Log in or create your silicon.com account below

Will not be displayed with your comment

By signing up for this service, you indicate that you agree to our Terms and Conditions and have read and understood our Privacy Policy.

Questions about membership? Find the answers in the Membership FAQ