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Posted By:  Ecommerce Exchange on 09/22/2017 in Cloud Services

What's Next for Oracle?

What's Next for Oracle?

As Oracle begins its second year of aggressive cloud promotion, the company overall is showing significant year-over-year improvements, thanks to its turn to cloud infrastructure, applications and platforms.

In his column on CRM Buyer, industry analyst and researcher Denis Pombriant explains that Oracle is the last major software vendor to adopt the cloud as its primary medium, and while it will support its legacy customers as long as necessary -- it has a good history of loyalty to customers in this regard -- there's no doubt about its direction. With a legacy installed base, moving to the cloud has been difficult for Oracle. Competitors Salesforce and NetSuite, on the other hand, were cloud natives from day one.

To make its pivot, Oracle has had to spin up three "as a Service" businesses: one for infrastructure, IaaS; one for software, SaaS; and one for platform, PaaS.

Infrastructure is a low-margin business, because there's a lot of low-priced competition. Yet it's essential to the company's strategy, because there will be a fraction of its 425,000-plus customers that get to the cloud simply by moving the locations of their data centers. Without an IaaS business, those customers could go anywhere, and keeping them in the software fold would become more difficult.

Oracle's transition to the cloud removes the last legitimate holdout -- the last objection to cloud computing almost anywhere -- and with that we can call a top to an age of computing that began with mainframes more than 50 years ago.

The logical question now is: what's next? The rest of the industry is not standing still. Along with transitioning its customers to the cloud, Oracle is continuing to invest in advanced technologies like artificial intelligence, machine learning and the Internet of Things, where it competes with most other vendors.

Continue reading Denis Pombriant's insights about Oracle's transition to the cloud on CRM Buyer.

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