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We've had several customers use Image Magick in this way. Usually it is to process image formats that Oracle Multimedia does not handle.
What is the source of your discomfort? One thing you should be careful about is security as you make calls from the database server to a program running outside Oracle.
Hopefully Marcel will chime in, as he has experience coding these solutions and may offer some design advice.
Thanks for the reply
I think my discomfort stems from the fact that I've always seen it as desirable to use the database if at all possible. And only resort to using a third party app if there was no way to meet our requirements in Oracle.
I was also concerned about scalabilty and robustness but I feel more comfortable in the knowledge that other customers have used this product in their applications.
And yes I would be extremely grateful for any design advice :)