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Any Suggestion ???
If both the applications are the same are they run in the same environment or run differently ?
Both applications have the same environment.
Did you try enabling the client trace to see where its failing ?
If not you can enable the trace(trace_level_client) in sqlnet.ora
Unfortunately the informations given are so generic as the error message itself. So only a generic answer is possible:
ORA-12560 is a common error on Windows when a LOCAL connection (no connection through a listener) is used,
1) ORACLE_SID is not set or not set correctly
2) the corresponding database service is not started
Of course since you run in an unsupported environment, other reasons are also possible.