Oracle pitches outsourcing to large customers

Oracle will promote its outsourcing services to top executives from the world's largest companies at its annual executive summit...

Oracle will promote its outsourcing services to top executives from the world's largest companies at its annual executive summit in the US.

Project outsourcing will be the focus at the two-day event, with speeches from Henry Kissinger and former president George Bush, said Oracle senior vice-president and chief marketing officer Mark Jarvis.

Oracle will talk about "specific project outsourcing" and tell attendees that it "can make [them] more efficient", Jarvis said. Oracle will not ask the companies to hand over management of all their software to Oracle, he said.

Oracle chairman and chief executive officer Larry Ellison, seemed to pull back a bit on a broad outsourcing offer he made earlier this year that promised clients a 5% reduction in IT cost.

"Most customers seem to prefer buying our software and having us run it instead of giving us their IT budget, but the offer still stands," Ellison said.

In January at Oracle Appsworld in Amsterdam, Ellison said the company would take over clients' complete IT operations and migrate them to Oracle software in exchange for a five-year contract and with clients' entire IT budgets for a year to be paid each year. At the time Ellison said that Oracle would charge 5% less each year.

Oracle, since then, has kept quiet about the broad offer; instead detailing its less dramatic outsourcing offerings at various events and in meetings with financial analysts.

The vendor distinguishes between three models of outsourcing: At Customer, At Oracle and At Partner. The software - either database, application server, or application software - is managed by Oracle in all models, but can be installed or hosted either at the customer's site, in Oracle's data centre or in a data centre operated by an Oracle partner.

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