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This is a strange issue, i am unable to create linked server using provider Oracle Provider for OLE DB. But am able to connect to it using sqlplus, was able to do telnet and tnsping.

when i'm trying from ssms it is giving an error saying cannot initialize the data source object of OLEDB provider.

I have enabled the allowin processes for the Oledb provider.

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What providers are available on your SQL Server?
In SSMS --> Server Objects --> Linked Servers --> Providers

Do you see an Oracle provider? If not install the provider which I believe you can find here: http://www.oracle.com/technetwork/database/windows/downloads/index-090165.html

If that doesn't work you can try this:
Create an ODBC connection on the server, and then create a linked Server with Microsoft OLE DB for ODBC drivers. Kind of a dirty way to do it, but it should work if you don't have the ability to install the oracle provider.

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