Welcome!

Recurring Revenue Authors: Elizabeth White, Yeshim Deniz, Xenia von Wedel, Liz McMillan, Carmen Gonzalez

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...
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.
Poor data quality and analytics drive down business value. In fact, Gartner estimated that the average financial impact of poor data quality on organizations is $9.7 million per year. But bad data is much more than a cost center. By eroding trust in information, analytics and the business decisions based on these, it is a serious impediment to digital transformation.
In his keynote at 19th Cloud Expo, Sheng Liang, co-founder and CEO of Rancher Labs, discussed the technological advances and new business opportunities created by the rapid adoption of containers. With the success of Amazon Web Services (AWS) and various open source technologies used to build private clouds, cloud computing has become an essential component of IT strategy. However, users continue to face challenges in implementing clouds, as older technologies evolve and newer ones like Docker c...
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...
Bill Schmarzo, author of "Big Data: Understanding How Data Powers Big Business" and "Big Data MBA: Driving Business Strategies with Data Science" is responsible for guiding the technology strategy within Hitachi Vantara for IoT and Analytics. Bill brings a balanced business-technology approach that focuses on business outcomes to drive data, analytics and technology decisions that underpin an organization's digital transformation strategy.
"MobiDev is a Ukraine-based software development company. We do mobile development, and we're specialists in that. But we do full stack software development for entrepreneurs, for emerging companies, and for enterprise ventures," explained Alan Winters, U.S. Head of Business Development at MobiDev, in this SYS-CON.tv interview at 20th Cloud Expo, held June 6-8, 2017, at the Javits Center in New York City, NY.
Rodrigo Coutinho is part of OutSystems' founders' team and currently the Head of Product Design. He provides a cross-functional role where he supports Product Management in defining the positioning and direction of the Agile Platform, while at the same time promoting model-based development and new techniques to deliver applications in the cloud.
The many IoT deployments around the world are busy integrating smart devices and sensors into their enterprise IT infrastructures. Yet all of this technology – and there are an amazing number of choices – is of no use without the software to gather, communicate, and analyze the new data flows. Without software, there is no IT. In this power panel at @ThingsExpo, moderated by Conference Chair Roger Strukhoff, Dave McCarthy, Director of Products at Bsquare Corporation; Alan Williamson, Principal ...
Apps and devices shouldn't stop working when there's limited or no network connectivity. Learn how to bring data stored in a cloud database to the edge of the network (and back again) whenever an Internet connection is available. In his session at 17th Cloud Expo, Ben Perlmutter, a Sales Engineer with IBM Cloudant, demonstrated techniques for replicating cloud databases with devices in order to build offline-first mobile or Internet of Things (IoT) apps that can provide a better, faster user e...