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Oracle OnDemand
Company Information
Year founded: This review has been replaced with the Oracle CRM on Demand review at
Oracle founded in 1977; SaaS product originated with 2006 Siebel Systems acquisition
 Ownership: Public (Nasdaq: ORCL)
 Number of employees: ~56,000 (2006)(number aligned with OnDemand SaaS CRM product not disclosed)
 Annual revenues: $14,380M USD (2006) (revenue attributed to OnDemand SaaS CRM product not disclosed)
 Target market: SMB (small and midsized businesses)
 Vertical markets:
Financial services
High tech
Life sciences
Automotive industries
 Company locations: Redwood City, California (headquarters)
 SaaS product awards: Customer Inter@ction Solutions Magazine
 Certifications: SAS70
 Partners: Significant partner network
 Partner programs: Yes, Authorized Consultants, ISV's, OEM, etc.
 Review site: Oracle Review
Product Information
 Subscription pricing $65.00 USD per user per month
 Add-on charges: Some
 Hosted and/or on-premise Hosted
 Underlying technology Hosted on Oracle's Grid-based infrastructure with an all Oracle stack
 Product name Oracle CRM On Demand
 Product modules

Oracle CRM On Demand

Hosted Delivery
Service Level Agreement (SLA): Yes
SLA guarantee Depends
SLA financial guarantee Yes, financial credits applied for failed performance
Support Programs: Help desk, strong partner network
About Oracle OnDemand

Oracle OnDemand was inherited with the Siebel Systems acquisition (Siebel previously acquired the UpShot company and hosted product and later matured it to the then Siebel OnDemand product suite).

Things we like about Oracle OnDemand:

  • Backed by Oracle (some may see this as a negative, however, we believe it is a positive)
  • Simple to use; great for small business organizations
  • Good reporting and analysis
  • Excellent solution if you also use Oracle Financials or similar Oracle application solutions

Things we don't like about Oracle OnDemand:

  • Lacks feature sets and functionality depth of some other on-demand CRM solutions
  • While we like it for small business, we don't think its ready for midmarket or enterprise organizations
  • Marketing and customer service modules are perceived as very weak

Oracle's SaaS Uncertainty
Oracle's long-term intentions for Siebel on Demand and the SaaS business model have long been in question by many industry insiders. Prior to the Siebel acquisition, CEO Larry Ellison had publicly chastised the SaaS model and discounted its value and potential. These concerns were again echoed during Oracle’s fiscal first quarter 2008 analyst reporting call (September 2007) when CEO Ellison clearly showed some distaste for the SaaS model. One day after SAP announced its Business ByDesign SaaS offering, Ellison suggested SAP is wasting its time pursuing the middle market with a SaaS solution.

Ellison proclaimed "We see the problem in that because we've looked at going downmarket." "We've looked very closely at it, and we think it's very hard to make money because there is no synergy. Ellison went on to say “It's very expensive to do ERP implementations in small businesses. The cost of sales is high. The cost of implementation is high. There are virtually no synergies in sales, marketing, and product development and support." Finally, Ellison commented "We just haven't figured out a way to make a substantial profit in that market. We think it's hard to make money." What does this mean for the long-term support, promotion and viability of Siebel OnDemand? We're not really sure. We suspect the only one who knows is Mr. Ellison.


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