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March 11, 2008 4:14 AM PDT

New Oracle software targets Salesforce

by Mike Ricciuti
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Updated at 7:20 a.m. to add details from Oracle announcement.

Oracle on Tuesday announced new on-demand CRM software aimed squarely at Salesforce.com.

The new software, Oracle CRM on Demand 15, is a revised version of a product acquired via Oracle's purchase of Siebel Systems in 2005.

Oracle's on-demand software, designed to help companies manage customer resources, will include a browser-based interface and can be customized to run on mobile devices such as BlackBerrys, and included in personalized Google and Yahoo pages.

Oracle's CRM on Demand 15

(Credit: Oracle Corp.)

Another aspect of the release is the inclusion of what Oracle calls "Social CRM" capabilities, including social networking and collaboration tools. ZDNet's Phil Wainewright explained more in a post earlier on Tuesday:

The lead component of Oracle CRM's new social capabilities is a new feature called 'Sticky Notes'. This allows a user to mark any object -- for example an account in a given salesperson's portfolio -- with a comment and then subscribe to the message stream related to that object. Team members can then follow and participate in the conversation around that object, which is all co-ordinated within new functionality called the 'Message Center'.

While Salesforce.com has enjoyed years of leadership in the on-demand business software market, Oracle and others are launching rival products. In Oracle's case, analysts say recent sales wins for Salesforce.com have refocused the company's efforts. "That was a wake-up call. They have come to a realization that there is money to be made from delivery of software as a service," Trip Chowdhry, an analyst with Global Equities Research, told Reuters.

Mike Ricciuti joined CNET in 1996. He is now CNET News' Boston-based executive editor and east coast bureau chief, serving as department editor for business technology and software covered by CNET News, Reviews, and Download.com. E-mail Mike.
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