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Oracle Will Allow Customers to Swap Software for Cloud Services

Oracle will allow customers to convert money they're now spending on annual support for on-premises into software subscriptions for its SaaS (software as a service) applications, in a bid to block defections to competitors such as Workday and Salesforce.com. Dubbed Customer 2 Cloud, the program lets Oracle customers using its on-premises HCM (human capital management) and CRM (customer relationship management) software switch over to cloud versions. E-Business Suite, Siebel, PeopleSoft and JD Edwards EnterpriseOne customers are eligible.

Customer 2 Cloud also incorporates Oracle's Cloud Express rapid implementation services. Packaged integrations between on-premises and cloud applications are also available, allowing for hybrid deployment models. The program also gives customers "a practical path for extending their on-premise applications with high value cloud applications, versus wholesale replacements," Oracle said in a statement. One scenario could see a PeopleSoft HCM customer taking some unused licenses and swapping them out for Oracle's cloud-based talent management software. Oracle's move follows a similar one last year by SAP, which is also trying to grow its cloud business quickly and keep on-premises customers in the fold.

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