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Jean is a senior industry analyst focusing her research on server technology, storage technology, database software and the emerging market for Software Defined Infrastructure (SDI).
Oracle is stepping up its move to the cloud, positioning the Oracle Cloud public cloud as an engine for growing its overall enterprise business.
As more companies move workloads into hybrid clouds, and competition intensifies, Oracle has decided to play to its strengths in security, availability and workload performance. It has taken its own approach by leveraging its engineered systems, running in Oracle Cloud data centers – or in customer sites – as a differentiator in competing with other CSPs.
Oracle knows it is competing with other cloud services that got into the market much earlier than it did: Amazon Web Services and Microsoft Azure. It also knows that Google Cloud Platform and IBM SoftLayer are working to grow share in the enterprise-focused hybrid cloud space. However, Oracle believes that large-scale migration of enterprise workloads is still in its early stages, giving it a large opportunity among customers planning to move enterprise workloads and business applications to public cloud providers.
In this competitive environment, Oracle is going directly to big customers, worldwide, with its Oracle CloudWorld events, recently held in New York and Seoul. It is positioning its deep software portfolio of Oracle databases, middleware and enterprise applications software as cloud service differentiators. In 2016, other CloudWorld events were held in China, India and Mexico.
Oracle phased in its move to the cloud – working first on SaaS, and PaaS, before introducing a set of IaaS services in 2016. Its cloud revenue is growing, as it reported in its quarterly financials. Now, Oracle is still adding to its cloud services portfolio: As announced in January, Oracle introduced bare-metal-as-a-service, so that customers can run workloads on the Oracle Cloud service, in place of on-premises hardware systems. It is also expanding Oracle Cloud capacity by adding three more data centers – in Virginia, London and Turkey. That will bring the total number of Oracle Cloud data centers worldwide to 25, covering all time zones and major geographies.
Oracle’s focus on enterprise feature-sets is positioned to pay off in hybrid cloud and public cloud, as it works to grow share in the rapidly expanding cloud services marketplace. Oracle’s cloud strategy is maintenance of a consistent computing environment, with the same Oracle stack running on-premises, at customer sites, and inside the Oracle Cloud. Oracle calls this an “integrated cloud” stack engineered to work on-prem or off-prem.
Oracle CloudWorld in New York
At New York’s CloudWorld event on Jan. 17, Oracle CEO Mark Hurd made the business case for CXOs adopting Oracle Cloud. Beyond the technology, he noted, business managers want to learn more about the business value of adopting cloud services. Cloud adoption supports IT simplification and workload consolidation, as enterprise datacenters are combined, and workloads migrate, either on-premises or off-premises. Oracle intends to play in both spaces, using the same Oracle software stack – while leveraging Oracle engineered systems in the Oracle Cloud.
Customers speaking the New York CloudWorld event included New York City’s CTO – and IT executives from MetLife, Thomson Reuters, ClubCorp and Grant Thornton, among others. They cited the flexibility they have with cloud services, to test new applications, to deploy more instances quickly, and to pay for capacity, as it is used.
Making the Business Case for the Oracle Cloud
The depth of Oracle’s commitment to cloud computing can be seen in Oracle’s investment levels in cloud technology, its re-write of Oracle Fusion applications for cloud-based workloads and its deep applications portfolio. All of that says that Oracle will be a long-run provider in the hybrid cloud market – and that it plans to replicate its earlier successes in enterprise database and enterprise applications with enterprise plays in the cloud computing marketplace.
The leading arguments in Oracle’s enterprise case for the cloud include:
In terms of Oracle’s software products and services, there is a multi-faceted strategy to position Oracle as a unifying element of hybrid cloud deployments. Oracle’s positioning includes the following:
Cloud adoption is accelerating in many organizations, across the board. For Oracle, it will be important to extend its reach to new audiences beyond the Oracle installed base, emphasizing its enterprise-centric delivery for business databases and business applications with OracleCloud. We expect Oracle to continue its outreach to new cloud-services customers, through Oracle CloudWorld Events, Oracle OpenWorld and through direct and partner sales efforts, throughout 2017.
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