Franz Lobo

DESCI 4463

WEEKLY REVIEW 7

SUMMARY

Larry Ellison, CEO of Oracle Corp, recently reiterated his belief that software vendors will eventually primarily deliver software over the Internet, rather than installing it in corporate locations. Speaking at a Business Online conference, Ellison stated: "All of the software vendors are going to figure out they must be ASPs (application service providers). Oracle started self- hosting applications earlier this year with its Business Online Program. A few other vendors also have begun hosting their own applications and are finding that customers prefer the new model to in-house applications.

REACTION

I agree with Larry Ellison. We are seeing a number of software manufacturers and service providers begin to host applications. As bandwidth issues continue to be solved, this becomes a very viable delivery method. However, before this strategy can be widely implemented, there are many issues to resolve. Just two of these issues are security and data privacy.

ADVANTAGES

Small- to medium- sized companies could economically benefit from this solution. These companies can minimize the need for in-house technology expertise and large financial investments in constantly changing software.

RELEVANCE

This article relates to Chapter 15 because as more bandwidth is facilitated, more companies will start doing more business over the Net. This means that security for commerce over the Internet will be vital. As more business is conducted over this medium, electronic payments services for the delivery of that kind of application services will be needed.

Pender, Lee. (1999, October 11). Oracle Trumpets Hosting. PC Week Magazine, pp. 20.