Oracle to focus on the web

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Oracle plans to expand its range of online software packages for businesses as part of a new online strategy according to an unauthorised source.

The company is also expanding its line of customer relationship management (CRM) software, or CRM programs, which companies use to manage sales and marketing activities. This will take it into direct completion with Salesforce.com, currently the biggest provider of web-based programs, known as software as a service or SaaS.

The source said that Oracle is developing internet-based programs to help businesses manage human resources functions including employee recruitment.

SaaS is becoming increasingly popular because their makers host the programs at their own data centres, saving customers the costs of running them on their own computers. The approach also makes it quicker and easier for companies to start using the new software.

Oracle has briefed some industry analysts on its plans to expand its SaaS offerings, though it is not clear when the products will be released, said the person who described the strategy.

A spokeswoman for Oracle declined comment.

Oracle Chief Executive Larry Ellison is a strong proponent of SaaS. Last year, he said that Oracle's small SaaS division had turned its first profit.

Ellison is also the founder and majority owner of NetSuite, a company that sells accounting programs to small and mid-sized businesses. He has told investors that Oracle's SaaS unit is one of its fastest-growing businesses.

Oracle recently bought out Sun Microsystems in a $7.4 billion (£5.08 billion) deal.

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