Welcome!

Recurring Revenue Authors: Yeshim Deniz, Zakia Bouachraoui, Elizabeth White, Pat Romanski, Xenia von Wedel

Related Topics: @CloudExpo, Java IoT, Microservices Expo, Recurring Revenue

@CloudExpo: Article

Oracle Takes to the Cloud

Oracle has spent upwards of $3.5 billion buying cloud companies

Oracle went indubitably cloud Wednesday when it hoisted a hundred-odd applications into the sky.

Larry Ellison, who emceed the announcement - and who's got to be every reporter's favorite CEO simply for the kind of copy he produces - said Oracle started on a "forced march" to the cloud seven years ago, leaving one to assume he previously belittled the hyped architecture as "complete gibberish" so Oracle could catch up.

The shift away from software that customers install internally - and the kind of support fees Oracle charges - could take a bite out of Oracle's precious revenues. A few years ago Ellison said the cloud was a hard way to make money.

The online offerings, a rewrite of practically everything Oracle owns to run on its own Oracle Public Cloud, are supposed to defend the company against SAP, Salesforce.com, Workday and Amazon. Ellison called it a "gigantic effort" that cost billions of dollars and was "as difficult a thing as anything we have ever done at Oracle."

The company was forced to go outside to get the job done although "simply buying things wouldn't have been enough," Ellison said.

Oracle has spent upwards of $3.5 billion buying cloud companies like RightNow Technologies for $1.5 billion and Taleo for $1.9 billion. Lately it's bought ClearTrial, Vitrue and Collective Intellect.

The widgetry, encompassing the company's Fusion apps, includes CRM and human-resources management delivered as a service as well as Oracle's signature database and a Chatter-like social networking service. Rival SAP announced its own cloud service last month and has put 24 apps online.

In his very first tweet, Ellison said, "Oracle's got 100+ enterprise applications live in the #cloud today, SAP's got nothin' but SuccessFactors until 2020."

Oracle has no intentions of being a niche player and claims to have "the most comprehensive cloud on planet earth." It expects to do $1 billion in cloud revenue from monthly (not hourly) subscription pricing this year, eventually returning margins of upwards of 50%.

Unlike the usual multi-tenant clouds, the Oracle Public Cloud is supposed to give users their own virtual machines and Amazon-like specification control and let them move between public and private clouds. Oracle will host the stuff on its own Exadata and ExaLogic machines for both the enterprise and developers.

Oracle's shares rose 3% on an otherwise buoyant day on Wall Street.

More Stories By Maureen O'Gara

Maureen O'Gara the most read technology reporter for the past 20 years, is the Cloud Computing and Virtualization News Desk editor of SYS-CON Media. She is the publisher of famous "Billygrams" and the editor-in-chief of "Client/Server News" for more than a decade. One of the most respected technology reporters in the business, Maureen can be reached by email at maureen(at)sys-con.com or paperboy(at)g2news.com, and by phone at 516 759-7025. Twitter: @MaureenOGara

Comments (0)

Share your thoughts on this story.

Add your comment
You must be signed in to add a comment. Sign-in | Register

In accordance with our Comment Policy, we encourage comments that are on topic, relevant and to-the-point. We will remove comments that include profanity, personal attacks, racial slurs, threats of violence, or other inappropriate material that violates our Terms and Conditions, and will block users who make repeated violations. We ask all readers to expect diversity of opinion and to treat one another with dignity and respect.


IoT & Smart Cities Stories
René Bostic is the Technical VP of the IBM Cloud Unit in North America. Enjoying her career with IBM during the modern millennial technological era, she is an expert in cloud computing, DevOps and emerging cloud technologies such as Blockchain. Her strengths and core competencies include a proven record of accomplishments in consensus building at all levels to assess, plan, and implement enterprise and cloud computing solutions. René is a member of the Society of Women Engineers (SWE) and a m...
Early Bird Registration Discount Expires on August 31, 2018 Conference Registration Link ▸ HERE. Pick from all 200 sessions in all 10 tracks, plus 22 Keynotes & General Sessions! Lunch is served two days. EXPIRES AUGUST 31, 2018. Ticket prices: ($1,295-Aug 31) ($1,495-Oct 31) ($1,995-Nov 12) ($2,500-Walk-in)
IoT is rapidly becoming mainstream as more and more investments are made into the platforms and technology. As this movement continues to expand and gain momentum it creates a massive wall of noise that can be difficult to sift through. Unfortunately, this inevitably makes IoT less approachable for people to get started with and can hamper efforts to integrate this key technology into your own portfolio. There are so many connected products already in place today with many hundreds more on the h...
Digital Transformation is much more than a buzzword. The radical shift to digital mechanisms for almost every process is evident across all industries and verticals. This is often especially true in financial services, where the legacy environment is many times unable to keep up with the rapidly shifting demands of the consumer. The constant pressure to provide complete, omnichannel delivery of customer-facing solutions to meet both regulatory and customer demands is putting enormous pressure on...
Business professionals no longer wonder if they'll migrate to the cloud; it's now a matter of when. The cloud environment has proved to be a major force in transitioning to an agile business model that enables quick decisions and fast implementation that solidify customer relationships. And when the cloud is combined with the power of cognitive computing, it drives innovation and transformation that achieves astounding competitive advantage.
Machine learning has taken residence at our cities' cores and now we can finally have "smart cities." Cities are a collection of buildings made to provide the structure and safety necessary for people to function, create and survive. Buildings are a pool of ever-changing performance data from large automated systems such as heating and cooling to the people that live and work within them. Through machine learning, buildings can optimize performance, reduce costs, and improve occupant comfort by ...
Charles Araujo is an industry analyst, internationally recognized authority on the Digital Enterprise and author of The Quantum Age of IT: Why Everything You Know About IT is About to Change. As Principal Analyst with Intellyx, he writes, speaks and advises organizations on how to navigate through this time of disruption. He is also the founder of The Institute for Digital Transformation and a sought after keynote speaker. He has been a regular contributor to both InformationWeek and CIO Insight...
Digital Transformation: Preparing Cloud & IoT Security for the Age of Artificial Intelligence. As automation and artificial intelligence (AI) power solution development and delivery, many businesses need to build backend cloud capabilities. Well-poised organizations, marketing smart devices with AI and BlockChain capabilities prepare to refine compliance and regulatory capabilities in 2018. Volumes of health, financial, technical and privacy data, along with tightening compliance requirements by...
Andrew Keys is Co-Founder of ConsenSys Enterprise. He comes to ConsenSys Enterprise with capital markets, technology and entrepreneurial experience. Previously, he worked for UBS investment bank in equities analysis. Later, he was responsible for the creation and distribution of life settlement products to hedge funds and investment banks. After, he co-founded a revenue cycle management company where he learned about Bitcoin and eventually Ethereal. Andrew's role at ConsenSys Enterprise is a mul...
Nicolas Fierro is CEO of MIMIR Blockchain Solutions. He is a programmer, technologist, and operations dev who has worked with Ethereum and blockchain since 2014. His knowledge in blockchain dates to when he performed dev ops services to the Ethereum Foundation as one the privileged few developers to work with the original core team in Switzerland.