PeopleSoft will launch a hosted solution aimed at the midmarket.
The latest offering has a redesigned architecture to reduce infrastructure support costs, said Don Duszynski, vice-president of global services hosting.
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"We are using Microsoft SQL as the database rather than Oracle. Rather than a San we use hard disc arrays," he said.
Under the aegis of PeopleSoft Global Services (PGS), the service will also include a "personalised support model".
Each customer will be assigned a client manager who will have an in-depth understanding of that customer's environment. The client manager will be responsible for maintenance, planning, bug fixes and patches.
PGS will allocate no more than five customers to a client manager depending on size of enterprise and number of products that are supported.
The hosted service, targeting companies with less than $1bn in annual revenues, will also include a self-service help-desk and a customer portal to allow users to check billing and invoicing online, log an issue, set a priority, or route through to the self-service system.
Industry analysts said that PeopleSoft applications and application management services, along with the infrastructure hosted at Surebridge, an ASP that already hosts its own PeopleSoft solution, is a good combination.
"SureBridge is a company focused on the midmarket space for many years," said Amy Mizoras Konary, programme manager for software pricing, licensing, and delivery at IDC.
The existing partnership with Hewlett-Packard, which has hosted PeopleSoft's enterprise solution since 1999, was more suited to larger companies with stringent requirements on the enterprise side.
"With the Surebridge partnership, PeopleSoft gains a right size backend that is more affordable for midsized customers," Mizoras Konary said.
The software modules in the midmarket offering are "exactly the same" as PeopleSoft's exisiting offerings, said Duszynski.
"There is no cut-down in capabilities. Mid-enterprise businesses are extremely complex, so they get identical software - we are just running it in a more efficient environment."
Ephraim Schwartz writes for InfoWorld