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Oracle ready for Net gains
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February 10, 1999: 4:04 p.m. ET
Database software giant says it's poised to lead Internet computing movement
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NEW YORK (CNNfn) - The movement to "Web-enabled computing" is under way, and Oracle Corp. executives say the company is primed to be the driving force behind it.
The Internet's tremendous influence on the way consumers shop, receive their news and entertain themselves has been well documented. But the Web is only now beginning to change the way corporations conduct their businesses, said Mark Jarvis, Oracle (ORCL) senior vice president of worldwide marketing,
"In the next year… not a single company will be left that won't challenge its current business practices" because of the Internet, Jarvis told a group of analysts and money managers at the Goldman Sachs Technology Conference in New York Wednesday.
And as businesses change their strategies to take advantage of the Web, Oracle believes a new way of computing will be a part of that shift.
Oracle, the Redwood City, Calif.-based database-software giant, has long touted the benefits of "thin-client," or network computing. Under that scheme, people use inexpensive computers with minimal memory and access software from a centrally based server only as needed.
The network-computing model is designed to eliminate the need for a computer operating system, such as Microsoft Corp. 's (MSFT) Windows, and cut out much of the complexity involved in today's PCs. Network computing also facilitates what Jarvis calls Web-enabled computing.
"Web enablement means instead of installing software on your desktop, you use the Web to access applications," he said. "That means the only thing on your desktop is a browser. It also means you'll see new types of applications you would never dream of giving Web users because the Web makes it easier, things like accounts payable software."
New database set to ship
Later this month, Oracle will ship Oracle 8i, a database designed to manage Internet applications.
Oracle 8i's Internet file system (IFS) allows users to store any file in any format in the database. Users then can access those files from any device that can run a Web browser.
Last month, Hewlett-Packard Co. (HWP) and Dell Computer Corp. (DELL) announced plans to build Oracle 8i Appliance software - code name "Raw Iron" -- into their computer servers, eliminating the need for a separate operating system.
Oracle, which is making all of its products "Internet enabled," is relying on the Internet to drive the change to platform-independent computing. Furthermore, Jarvis said, Oracle will benefit as more and more companies realize the value in leveraging the Internet for business-to-business transactions.
"We're really at the start of the Internet commerce curve," Jarvis said. "It's a market we think we will dominate as we go forward. As more people use the Web, more people will be driven to our database."
It's a notion that sits well with Rick Sherlund, a Goldman Sachs software analyst.
Sherlund said in a research note that in the near term, "Oracle may benefit from its presence as an Internet infrastructure provider as its applications and databases become more Internet centric."
"We believe that there is a clear platform shift underway from earlier-generation client-server systems to more Internet-enabled client-server systems and the added new dimension of business-to-business commerce," Sherlund said. "Oracle appears to be out in front of this issue."
Applications business growing
Separately, Oracle executives said its applications business, which has suffered in recent quarters, has been growing.
Oracle is the second-largest maker of software applications for corporate enterprises, behind Germany's SAP AG (SAP). Oracle's applications business grew 19 percent in its second fiscal quarter.
Though that level is lower than the company would like, Jeff Henley, Oracle chief financial officer, said the company believes it is positioned to grow its applications business "significantly faster this year." 
-- by staff writer John Frederick Moore
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