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Oracle Turns Cloud Corner
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IMjustinkern
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IMjustinkern,
User Rank: Strategist
6/20/2014 | 12:44:10 PM
100 cloud apps
Doug, any mention from Ellison on the much-touted 100 cloud apps from about 18 months ago? I remember at the time that it seemed like Oracle's first direct actions toward a cloud ecosystem ... but not a lot of mention since. Oracle big wigs have been big on telling (rather than showing) on the cloud, so I'd be interested to see how they're moving on that former big app splash (particularly given Ellison's previous stance on the cloud fad). (you wrote about it here)
danielcawrey
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danielcawrey,
User Rank: Ninja
6/20/2014 | 2:59:00 PM
Re: 100 cloud apps
Most cloud companies are based on Oracle databases? What about Google? How about Facebook?

I don't know if I can believe that statement. Sure, maybe Fortune 500 companies looking to move to the cloud might use Oracle. But huge cloud companies usually make their own systems from scratch. 
D. Henschen
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D. Henschen,
User Rank: Author
6/20/2014 | 2:54:04 PM
Oracle's stock getting hammered
Despite Oracle's cheery assessment of its cloud fortunes, its stock is getting hammered today because Wall Street cares more about revenue and profits. The latter is driven by new software sales, 25%, and software updates and support revenue, 47%, while cloud, including SaaS, PaaS, and IaaS was only 4% of revenue in FY 2014. Hardware products and support accounted for 14% of revenue.
Charlie Babcock
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Charlie Babcock,
User Rank: Author
6/20/2014 | 6:52:57 PM
Turning that long corner
When we say Oracle has turned the corner on cloud, I think that corner looks like one on the street in front of Apple headquarters, Infinite Loop. The next few years will show there's a big difference between putting legacy applications in the cloud and building applications for the cloud. Not that Oracle doesn't have a great future in applications... but there's more going on below the surface here than can possibly be captured in an Oracle application roadmap. Ten years from now, Oracle will still be pulling in buillions and still rounding that corner.
D. Henschen
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D. Henschen,
User Rank: Author
6/22/2014 | 12:55:49 PM
Re: Turning that long corner
Charlie, I think you're forgetting that Oracle -- like IBM and SAP -- is not just cloud washing legacy applications, its also acquiring SaaS businesses. Eloqua, RightNow, BlueKai, Taleo, and Responsys are just a few examples -- before you get to the company's Fusion Apps. At SAP they point to acquisitions including Ariba, Hybis, and Success Factors. So what's this "below the surface" stuff you're refering to and would you say you just can't buy your way into the cloud?
TurboResearch
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TurboResearch,
User Rank: Apprentice
6/22/2014 | 9:41:55 PM
Re: Turning that long corner
Not true organic growth in the cloud. Oracle simply buys a few cloud companies every year and then says we are growing by XYZ% year over year. That looks like an illusion while the likes of Workday and Salesforce seem to be capturing core ERP business and building everything around it. As Workday and Salesforce build it out from bottom up, it will be difficult for these acquired-n-patched-up companies to compete with comprehensive ERP suite with strong backbone. After Micros & few other deals this year, Oracle will claim it is bigger than Salesforce. But Salesforce is building out a strong platform that will eventually eat away at Micros business that they currently don't own such as retail and hospitality business. 
D. Henschen
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D. Henschen,
User Rank: Author
6/23/2014 | 1:19:39 PM
Re: Turning that long corner
Micros is no cloud vendor. See my story on that deal, which will see Oracle buy a mini me -- lots of software maintenance revenue, little new software sales next to nothing in cloud (unless you call hosting cloud). As for Oracle, as I reported, both Salesforce.com and Workday have higher growth rates, but Oracle's scale does help it. 25% growth for a $2 billion business stands up against 75%+  growth for Workday's $500 million business. But it won't keep pace with Salesforce.com's 30% growth in its $4 billion business.
Charlie Babcock
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Charlie Babcock,
User Rank: Author
6/23/2014 | 2:39:30 PM
What's the application of the future look like?
Yes, you're right, Doug. Good technology is being acquired and Oracle is no slouch, for that matter, at converting applications to the cloud. But I still think the major application effort of the future is going to start on a platform in the cloud and be composed of many cloud services -- PaaS composed of many software -as-a-service features, with Docker-style deployment. We might be talking future custom applications versus standard, baseline business applications. Just don't know how many "standard business applications" there will be in the future.


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