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Oracle On Demand gets new chief

CNET News.com has a piece focusing on Oracle’s subscription services, which just got a new head, Juergen Rottler, former SVP at HP (another refugee from Carly’s last shakeup?). Among the interesting things is the 3-5% pricepoint quoted here.

Rottler’s post is a new one within Oracle, and its creation signals a stronger effort by the company to crack the subscription software market. The company has offered software-hosting services for the past five years but has redoubled its efforts recently, as such services have gained popularity. A successful initial stock offering by hosting rival Salesforce.com in June further validated the budding market.
Oracle says On Demand is one of its most fruitful new endeavors, announcing yesterday that first-quarter revenue from the division was 34 percent greater than in the same quarter last year.
Under the hosting program, customers license Oracle’s software as they normally would but let Oracle set up, host and maintain the software on its computers for 3 percent to 5 percent of the cost of the software per month. The service is available for Oracle’s database programs, as well as its business management applications and application server software.