|By Harry Trott||
|February 12, 2014 10:00 AM EST||
Oracle has sounded extremely optimistic about their future; one that is going to be dominated by the cloud. The company has reported cloud revenue growth of anywhere between 35% and 50% over the past few quarterly financial reports. Safra Catz, the Chief Financial Officer at Oracle is noted to have said that her company is focused at increasing market share on the cloud at this point “unlike all those cloud companies” like SalesForce that are focusing on profits.
So is the company seeing a paradigm shift in their revenue pie? Not really. Despite the buzz about Oracle’s focus being on the cloud, this segment only contributes to 3% of the overall revenues at the moment. According to a report by Cowen analyst Peter Goldmacher, the organic cloud growth at Oracle in the second quarter is not expected to have been more than 6%.
What this implies, is that a huge contribution to the Oracle cloud revenues come from its acquisitions over the past few years. It cost Oracle close to $5.5 billion to acquire RightNow, Taleo, Eloqua and Responsys. These businesses, according to Goldmacher, are now growing in single digits which means that by the same time next year, Oracle might not really be in a position to tout its massive cloud growth numbers. Unless they make another big ticket acquisition, that is.
However, that may not be the only ticket to a bigger pie in the cloud. In a study published last month, market research firm Gartner has claimed that traditional ERP systems could be relegated to the status of ‘legacy systems’ as early as 2016. The SaaS based ERP market itself is set to attain a share of 17% of the overall revenues by 2017, according to another report by Gartner. Besides, the latest versions of the Oracle’s JD Edwards World software come with web based clients. Given these metrics, it is very likely that a significant chunk of Oracle’s revenues from the traditional setup would migrate to the cloud over the next few years.
Herein lies the challenge and the opportunity. The opportunity is here because the world is moving towards the cloud. Cloud computing in general is geting commoditized and the overall market size could be much bigger than what the traditional ERP market has ever been. However, the challenge is from the smaller niche focused players like NetSuite and Plex that have already established themselves in the cloud ERP space. Will Oracle be preferred over these smaller players due to the brand? Or, will the size of the company weigh against Oracle when it comes to picking a service provider who can provide a more personalized value to the clients? This is a challenge that Oracle would be facing when cloud ERP goes mainstream.
Having said that, Oracle is still in a better shape given that its competence is in not just the software, but also in the hardware that goes into building cloud networks. The company is still one of the leading manufacturers of servers and networking products that are critical to building a sophisticated cloud business. Given that most of the smaller cloud players do not have the infrastructure to build their own hardware, Oracle is poised for growth in the cloud industry even without its software applications. Not only does this give Oracle the leverage to push for cloud growth, it also ensures that the company can have a more competitive pricing strategy since most of the hardware could be sourced from within the company.
"We've just seen a huge influx of new partners coming into our ecosystem, and partners building unique offerings on top of our API set," explained Seth Bostock, Chief Executive Officer at IndependenceIT, in this SYS-CON.tv interview at 16th Cloud Expo, held June 9-11, 2015, at the Javits Center in New York City.
Aug. 1, 2015 09:00 PM EDT Reads: 662
This week, I joined SOASTA as Senior Vice President of Performance Analytics. Given my background in cloud computing and distributed systems operations — you may have read my blogs on CNET or GigaOm — this may surprise you, but I want to explain why this is the perfect time to take on this opportunity with this team. In fact, that’s probably the best way to break this down. To explain why I’d leave the world of infrastructure and code for the world of data and analytics, let’s explore the timing...
Aug. 1, 2015 07:45 PM EDT Reads: 403
SYS-CON Events announced today that HPM Networks will exhibit at the 17th International Cloud Expo®, which will take place on November 3–5, 2015, at the Santa Clara Convention Center in Santa Clara, CA. For 20 years, HPM Networks has been integrating technology solutions that solve complex business challenges. HPM Networks has designed solutions for both SMB and enterprise customers throughout the San Francisco Bay Area.
Aug. 1, 2015 04:45 PM EDT Reads: 483
One of the ways to increase scalability of services – and applications – is to go “stateless.” The reasons for this are many, but in general by eliminating the mapping between a single client and a single app or service instance you eliminate the need for resources to manage state in the app (overhead) and improve the distributability (I can make up words if I want) of requests across a pool of instances. The latter occurs because sessions don’t need to hang out and consume resources that could ...
Aug. 1, 2015 04:00 PM EDT Reads: 233
You often hear the two titles of "DevOps" and "Immutable Infrastructure" used independently. In his session at DevOps Summit, John Willis, Technical Evangelist for Docker, covered the union between the two topics and why this is important. He provided an overview of Immutable Infrastructure then showed how an Immutable Continuous Delivery pipeline can be applied as a best practice for "DevOps." He ended the session with some interesting case study examples.
Aug. 1, 2015 03:30 PM EDT Reads: 242
The Software Defined Data Center (SDDC), which enables organizations to seamlessly run in a hybrid cloud model (public + private cloud), is here to stay. IDC estimates that the software-defined networking market will be valued at $3.7 billion by 2016. Security is a key component and benefit of the SDDC, and offers an opportunity to build security 'from the ground up' and weave it into the environment from day one. In his session at 16th Cloud Expo, Reuven Harrison, CTO and Co-Founder of Tufin,...
Aug. 1, 2015 03:00 PM EDT Reads: 519
Approved this February by the Internet Engineering Task Force (IETF), HTTP/2 is the first major update to HTTP since 1999, when HTTP/1.1 was standardized. Designed with performance in mind, one of the biggest goals of HTTP/2 implementation is to decrease latency while maintaining a high-level compatibility with HTTP/1.1. Though not all testing activities will be impacted by the new protocol, it's important for testers to be aware of any changes moving forward.
Aug. 1, 2015 02:15 PM EDT Reads: 189
Aug. 1, 2015 02:00 PM EDT Reads: 307
Alibaba, the world’s largest ecommerce provider, has pumped over a $1 billion into its subsidiary, Aliya, a cloud services provider. This is perhaps one of the biggest moments in the global Cloud Wars that signals the entry of China into the main arena. Here is why this matters. The cloud industry worldwide is being propelled into fast growth by tremendous demand for cloud computing services. Cloud, which is highly scalable and offers low investment and high computational capabilities to end us...
Aug. 1, 2015 01:30 PM EDT Reads: 180
[slides] Storage for Docker Containers By @OnModulus | @DevOpsSummit #DevOps #Docker #Containers #Microservices
Learn how to solve the problem of keeping files in sync between multiple Docker containers. In his session at 16th Cloud Expo, Aaron Brongersma, Senior Infrastructure Engineer at Modulus, discussed using rsync, GlusterFS, EBS and Bit Torrent Sync. He broke down the tools that are needed to help create a seamless user experience. In the end, can we have an environment where we can easily move Docker containers, servers, and volumes without impacting our applications? He shared his results so yo...
Jul. 31, 2015 11:45 PM EDT Reads: 790
Modern DevOps Tool Kit By @Logentries and @NewRelic | @DevOpsSummit #DevOps #Containers #Microservices
Auto-scaling environments, micro-service architectures and globally-distributed teams are just three common examples of why organizations today need automation and interoperability more than ever. But is interoperability something we simply start doing, or does it require a reexamination of our processes? And can we really improve our processes without first making interoperability a requirement for how we choose our tools?
Jul. 31, 2015 11:15 PM EDT Reads: 430
Cloud Migration Management (CMM) refers to the best practices for planning and managing migration of IT systems from a legacy platform to a Cloud Provider through a combination professional services consulting and software tools. A Cloud migration project can be a relatively simple exercise, where applications are migrated ‘as is’, to gain benefits such as elastic capacity and utility pricing, but without making any changes to the application architecture, software development methods or busine...
Jul. 31, 2015 10:00 PM EDT Reads: 1,355
The Internet of Things. Cloud. Big Data. Real-Time Analytics. To those who do not quite understand what these phrases mean (and let’s be honest, that’s likely to be a large portion of the world), words like “IoT” and “Big Data” are just buzzwords. The truth is, the Internet of Things encompasses much more than jargon and predictions of connected devices. According to Parker Trewin, Senior Director of Content and Communications of Aria Systems, “IoT is big news because it ups the ante: Reach out ...
Jul. 31, 2015 07:00 AM EDT Reads: 412
Where the Network Got Invited to the Party By @LMacVittie | @DevOpsSummit #DevOps #Docker #Containers #Microservices
At DevOps Summit NY there’s been a whole lot of talk about not just DevOps, but containers, IoT, and microservices. Sessions focused not just on the cultural shift needed to grow at scale with a DevOps approach, but also made sure to include the network ”plumbing” needed to ensure success as applications decompose into the microservice architectures enabling rapid growth and support for the Internet of (Every)Things.
Jul. 30, 2015 08:15 PM EDT Reads: 1,776
Designing the IT Architecture of the Future with Adrian Cockcroft | @DevOpsSummit #DevOps #Docker #Containers #Microservices
Our guest on the podcast this week is Adrian Cockcroft, Technology Fellow at Battery Ventures. We discuss what makes Docker and Netflix highly successful, especially through their use of well-designed IT architecture and DevOps.
Jul. 30, 2015 08:00 PM EDT Reads: 789
[slides] A New Architecture for the Internet of Things By @JKirklan | @ThingsExpo @RedHatNews #IoT #M2M #InternetOfThings
Explosive growth in connected devices. Enormous amounts of data for collection and analysis. Critical use of data for split-second decision making and actionable information. All three are factors in making the Internet of Things a reality. Yet, any one factor would have an IT organization pondering its infrastructure strategy. How should your organization enhance its IT framework to enable an Internet of Things implementation? In his session at @ThingsExpo, James Kirkland, Red Hat's Chief Arch...
Jul. 30, 2015 07:30 PM EDT Reads: 1,414
Take the Long View with Digital Transformation By @IoT2040 | @ThingsExpo #IoT #M2M #API #Microservices #InternetOfThings
Digital Transformation is the ultimate goal of cloud computing and related initiatives. The phrase is certainly not a precise one, and as subject to hand-waving and distortion as any high-falutin' terminology in the world of information technology. Yet it is an excellent choice of words to describe what enterprise IT—and by extension, organizations in general—should be working to achieve. Digital Transformation means: handling all the data types being found and created in the organizat...
Jul. 30, 2015 05:00 PM EDT Reads: 1,106
[slides] Workloads and Public Cloud at @CloudExpo By @utollwi | @ProfitBricksUSA #DevOps #Containers #Microservices
Public Cloud IaaS started its life in the developer and startup communities and has grown rapidly to a $20B+ industry, but it still pales in comparison to how much is spent worldwide on IT: $3.6 trillion. In fact, there are 8.6 million data centers worldwide, the reality is many small and medium sized business have server closets and colocation footprints filled with servers and storage gear. While on-premise environment virtualization may have peaked at 75%, the Public Cloud has lagged in adop...
Jul. 30, 2015 04:00 PM EDT Reads: 2,225
MuleSoft has announced the findings of its 2015 Connectivity Benchmark Report on the adoption and business impact of APIs. The findings suggest traditional businesses are quickly evolving into "composable enterprises" built out of hundreds of connected software services, applications and devices. Most are embracing the Internet of Things (IoT) and microservices technologies like Docker. A majority are integrating wearables, like smart watches, and more than half plan to generate revenue with ...
Jul. 30, 2015 02:30 PM EDT Reads: 127
[session] DevOps State of Mind By @RedHatNews | @DevOpsSummit #DevOps #PaaS #Jenkins #Kubernetes #Docker
Rapid innovation, changing business landscapes, and new IT demands force businesses to make changes quickly. The DevOps approach is a way to increase business agility through collaboration, communication, and integration across different teams in the IT organization. In his session at DevOps Summit, Chris Van Tuin, Chief Technologist for the Western US at Red Hat, will discuss: The acceleration of application delivery for the business with DevOps
Jul. 30, 2015 12:45 PM EDT Reads: 1,132