Oracle set to ditch licensing fees for ISVs

Independent software vendors (ISVs) which develop applications based on Oracle products will no longer be charged licensing fees

Previously, certified ISVs have paid a one-off licensing fee for all Oracle software, as well as a percentage of the profits from the sale of the final product.

Andy Bailey, UK product marketing manager at Oracle, said the change was part of a plan by the vendor to consolidate its channel partner programmes and encourage developers to accept its latest vision of a computing environment which is not based on the traditional client/server model.

The move comes as the company's database, Oracle8i, went into beta this week. The software - billed as the world's first internet database - should be available to the channel by the end of the year.

Last week, Larry Ellison, chief executive of Oracle, said businesses which chose to ignore internet-based computing were making a 'colossal error'.

Maston Daniel, head of alliances at Oracle ISV Armature, said: 'This move will create significant savings for us.'

Tony Sztypuljak, sales and marketing director at Open Business Solutions, agreed: 'We are delighted because it shows Oracle wants to support its channel and work with partners in a collaborative way.'