Oracle will announce an ASP strategy today, which the company claims will be critical in its plans to become the largest software company in the world within three years.
According to Oracle's senior vice president of worldwide marketing, Mark Jarvis, the goal of its "business online" strategy is to make it "irrational for a company to buy software in a box."
Jarvis said Oracle's future is geared toward services on the Internet not products in a box and that more than 50 per cent of the company's income will be generated by business online in the next five years.
He said there will be a massive shakeout in the software industry driven by the demand for Web hosting technology and the ASP model.
"The biggest challenge the software industry faces is going from building software over a two year period for delivery in a box followed by installation to offering an online service that can be provided within days; we will run software in our own datacentres and partner with network companies so our developers will switch from simply building products to maintaining and improving products," Jarvis said.
In this environment, Jarvis said IBM will be Oracle's main competitor despite describing the company as primarily a consultancy because Microsoft is not equipped for the new age of software.