Oracle Plans Utah Data Center To Support SaaS Business - InformationWeek

Oracle is joining the ranks of software system sellers edifice new information centres to back up cloud computing.

The company will open up what it depicts as a planetary information engineering centre in Occident Jordan, Utah, by 2010, partly to back up the company's growth on-demand software system business.

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Oracle bes after to interrupt land on the 200,000-square-foot installation this summertime and tags its initial investing at $285 million. Prophet issued a prepared statement today from president Safra Catz, who said the centre will assist support its on-demand business, plus research and development and client service operations. Prophet wouldn't let on additional inside information about the center's operations, but its program is consistent with Microsoft, Google, and other technical school sellers edifice new information centers, typically in low-cost areas, to back up growing online operations.

Oracle's on-demand software system operation grossed $174 million in gross in its financial one-fourth ended March 26, up 23% from the same one-fourth last year. Based on fairly consistent quarter-to-quarter growth rates over the past few years, Prophet On Demand is on path to gross around $700 million in yearly gross for the company's financial twelvemonth ending in June, and Prophet mentions 3.6 million users of its on-demand apps.

The company's on-demand business, however, is different from the multitenant, software-as-a-service, subscription-based theoretical account popularized by Salesforce.com. It's a hosting service in which Prophet pulls off the accredited applications of a specific customer, rather than a system in which many clients share a single case of software, and are all upgraded at the same time, to let for an across-the-board monthly subscription fee. Prophet On Demand stands for about 3% of its revenue. By comparison, software system licenses, updates, and support represented about 80% of the company's $5.35 billion in gross in the last quarter.

Oracle said Beehive State offered inducements to construct the centre in that state, but did not let on inside information of the inducement deal. The land site is expected to house around 100 employees, with reward exceeding 200% of the Salt Lake County norm wage.

Microsoft, meanwhile, is investing more than than $1 billion for two new information centres near Windy City and Dublin, Ireland. These new investings add to the 100s of billions of dollars Microsoft's already disbursement on waiter farms around the human race to back up client e-mail, download software system updates, and support photograph sharing.