After years of denying the viability of cloud, Oracle is finally announced intention to move its cash cow business unit – enterprise resource planning (ERP) suite into the cloud. And timing couldn’t be better. IDC estimates that ERP and customer relationship management (CRM) served as a service make up a majority of cloud spending worldwide.
IDC’s Worldwide Semi-annual Public Cloud Services Tracker, show the worldwide market for cloud services hit $US45.7 billion ($A48.7b) during 2013. Of that total, $US10.78 billion (24%) was spent on ERP systems and $US8.13 billion (18%) was spent on CRM.
The strength of ERP and CRM spending meant the Software-as-a-Service model accounted for 72% of the market, with Platform-as-a-Service and Infrastructure-as-a-Service making up 14% each.
So Oracle’s decision to finally move its flagship business – ERP software – may finally be an undeclared confirmation that cloud is the direction all businesses are heading into – whether Larry Ellison likes it or not.
Currently, the company globally has over 1,000 ERP cloud customers, including some local customers already live on the platform and hosted out of the company's Sydney datacentre.
Since Oracle first joined the public cloud party in 2012, the company has been pushing its way into the market with solutions for platform-as-a-service (PaaS), software-as-a-service (SaaS), infrastructure-as-a-service, and most recently data-as-a-service.
The progress being made by the company in those areas have started to show. During its Q4 results, SaaS and PaaS revenues grew at 34 percent constant currency, with expectations that revenue growth rate will jump to around 60 percent in constant currency this fiscal year.
0 Comment Log in or register to post comments