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Web infrastructure provider and hosting company Loudcloud has teamed up with database giant Oracle to integrate customers' internet operations with enterprise applications.

Under the agreement, the two companies said they will work to help customers better focus internal assets on customer service and new business opportunities.

The alliance complements Oracle's ongoing iHost programme, which helps software vendors move from offline software distribution to the online software model, delivered by a managed service provider such as Loudcloud.

Tim Howes, president of product operations at Loudcloud, said one of the most important success factors is the ability to fully integrate a customer's enterprise applications with their internet operational environment. "Integration is essential for success," he said.

Founded by Marc Andreessen, co-founder of Netscape, Loudcloud provides customers with the software infrastructure required to deploy, manage and monitor clients internet operations. According to the agreement, Oracle will prepare customers and partners for transition to Loudcloud's infrastructure network.

Loudcloud provides outsourcing services, called Smart Cloud services, which include the use of web servers, ecommerce software, communications equipment and network capacity on a monthly basis.

The services are based on Loudcloud's proprietary Opsware technology that manages each customer operational environment, paying only for the capacity that the user deploys.

Mark Salser, senior vice-president at Oracle, said working with Loudcloud would allow Oracle to address the increasing needs of a growing market. Loudcloud has quickly become a major player as an outsourced internet infrastructure service provider, he added.