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Oracle's Plan To Beat Salesforce: Give Customers Their Own Server (ORCL, CRM)

phillips_charles.jpgOracle (ORCL) thinks it's found Salesforce.com's (CRM) Achilles heel: "Multitenancy."

In English, that means when a customer uses Salesforce's Software-as-a-Service CRM, multiple different companies share the same physical server on the back end. In Oracle's CRM On Demand Release 16, due out later today, Oracle will offer new single-tenant services, so Oracle's customers won't share computers with anyone else.

Why does "multitenancy" vs "single-tenant" matter? Two reasons:

  1. When a single-tenant server crashes, only one customer feels it. When multi-tenant clouds go down, like we saw in the hour-long Salesforce.com crash earlier this month, everyone may be affected.

See Also:
Salesforce.com Crashes
Salesforce.com Rival: Marc Benioff Had Us Booted From Our Hotel

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