How Oracle learned to stop worrying and love the cloud

Thursday, July 18th, 2013


For years, Oracle and its stockholders took comfort in knowing that it was a leader in the enterprise software market. Oracle can boast statistics like having more than 390,000 customers in 145 countries around the world – including all 100 of the Fortune 100.

But over the past few years, there has been concern from analysts that Oracle may not be moving quickly enough to take advantage of the new cloud computing space. As David Linthicum said in a recent blog post on InfoWorld, “…the recent announcement that Oracle missed its Q2 projection has many analysts worrying and wondering about the impact of cloud computing on Oracle. Many also question if Oracle can take advantage of the growing cloud computing space.” Oracle answered critics last week with a series of announcements that gained a lot of attention in the cloud computing world.

Cloud Love

In a space of one week, Oracle announced partnerships with three of the cloud’s biggest players. First, there was the announcement that Oracle and long-time rival Microsoft had inked a deal that will allow Oracle software to run on Microsoft’s Server Hyper-V and Windows Azure platforms. Then came the announcement that Salesforce.com will continue using Oracle software for the next nine years and that Oracle with integrate Salesforce.com into its infrastructure platform. Then, the final announcement that Oracle’s human capital management applications and Netsuite’s ERP suite will be combined as part of an integrated cloud offering sold by both companies was released.

In one week, Oracle aligned itself with the biggest names in platform-as-a-service (Microsoft), CRM (Salesforce), and ERP (Netsuite). These announcements help Oracle in the short-term, as analysts complain that its own cloud offerings aren’t being developed fast enough. In other words, if Oracle doesn’t have cloud applications that can compete, it has made sure that the biggest players in the cloud market will at least be using their technology.

But what does this mean for cloud computing in general? The Oracle partnerships show that even the biggest enterprise software providers are making huge investments and strategic decisions in the cloud. And, with this shift comes more confidence from those enterprises to embrace this new technology. The cloud is moving from cutting edge technology to mainstream offering. In essence, it can serve to reassure the enterprise that cloud computing is the future and now is the time to start thinking about how to best leverage cloud computing for decreased costs and maximum competitive advantage.


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