Oracle CEO Larry Ellison will likely update Oracle’s cloud computing and cloud services strategy on October 5. Meanwhile, Oracle is polishing its managed services partner strategy at Oracle OpenWorld in San Francisco. Channel Chief Judson Althoff today told me the new Oracle Database Appliance is ideally suited for MSPs that want to remotely manage scalable applications. Here’s why.

Althoff predicted the Oracle Database Appliance will catch on with MSPs because the system is scalable based on changing application  workloads. The appliance has 24 Intel x86 cores and runs Oracle Linux and Oracle’s database. Partners can turn on — and off — the cores based on end-customers’ evolving needs.

Here’s the interesting twist: Althoff mentioned managed services before I did, a clear sign that managed services is starting to become front-of-mind for the Oracle PartnerNetwork (OPN) Specialized partner program.

“MSPs face a key challenge: They are never quite sure just what type of capacity customers will consume,” said Althoff. “But [with the appliance] you can turn on or turn off cores based on customer needs. You could go to a single-node database up to a multi-core database without swapping out the hardware. MSPs can provide the appliance on-site with no on-site IT support; that really transforms the cost of support.”

Althoff also sees growing synergies between ISVs, VARs and MSPs. “ISVs want hardware that performs but they aren’t keen on the reselling business. So I think you’ll see a pairing up between our ISVs, VARs and MSPs.”

Still, the Oracle Database Appliance is not a small-business play. Distributors like Avnet Technology Solutions and Arrow ECS are training partners to support the appliance within enterprise departments and mid-market customer settings. Avnet has ordered 100 of the appliances and expects the first shipments to arrive from Oracle in mid-October 2011.