Another Oracle Openworld has come and gone. As the premier Oracle event, it attracts super-executives of all stripes, armed with a juggernaut of statistics and announcements outlining their vision of reality.
This year was no exception.
From the large outdoor 360 degree screen on Howard Street, to the 10,000 plus capacity of the Moscone North Auditorium, event attendees were everywhere. One thing was clear – the full court press to convince 60,000 plus attendees, that cloud based computing is not only the future, but the present, was on!
It is evident that Oracle’s leaders, Larry Ellison and Thomas Kurian, have had a strong vision for the past eight years. They have always seen Oracle as owning the enterprise computing market. The game plan for that vision has been twisted and turned, leaving customers and partners alike dizzy while they waited to see what would shake out.
Many Oracle customers that I spoke to at Open World, and over the past few months have asked the question; ‘Are Oracle’s cloud based back-office offerings ready for the mainstream?’
Oracle Senior Vice President Shawn Price seems to have come up with an answer at least in his own mind. Shawn was head of Cloud Strategy for SAP, and he now heads up Cloud Go-To Market for Oracle. Shawn described a rapidly growing Oracle Cloud ecosystem, with over 73 million subscribers in 19 data centers generating 33 billion transactions a day.
”Net-New” Cloud ERP installs, Oracle’s newest focus area, amounted to 200 new clients in Q1 (June to August 2015), and 1,000 to 1,300 for the past fiscal year. Combine this with similar statistics for Human Capital Management (HCM) and Customer Relationship Management (CRM), and recent results have helped Oracle build a business worth more than 2 billion dollars. In FY14, Oracle Cloud based application Average Annual Revenue (AAR) grew 37% year over year, and this year, many Oracle sales teams are experiencing triple digit growth, with overall targets of 1 to 2 billion dollars in additional AAR.
This growth trend is not just a Mid-Market phenomenon. Last year Oracle closed four cloud deals with over 25 million in AAR, and showcased flagship Client GE, who’s CIO Jim Flowler stated that they are moving everything to the cloud that they can over the next few years. Mark Hurd, Oracle Sales Leader, described a current market with over 74 billion in potential and only 5% penetration to date, making the bold prediction that by 2025, 100% of all dev/test and 80% of all applications would exist in the cloud.
So is Oracle Cloud ready for you? – That depends on who you are – but a growing segment of the market believes that it is and Oracle is making sure we all know it.