Oracle refocuses the company on chasing the cloud

Company wants to be one-stop cloud shop, but analysts say it's playing catch up

By Sharon Gaudin
Sept. 20, 2016


20151027 openworld oracle cloud signs

Intent on getting in on the momentum building behind the cloud, Oracle Corp. is refocusing the company to become a top cloud player.

The company is making that clear at its annual customer conference, Oracle OpenWorld, in San Francisco this week.

During his opening keynote, Larry Ellison, Oracle executive chairman and chief technology officer, said the company intends to take on Amazon Web Services and its top position in the cloud market.

"Amazon's lead is over," he said. "Amazon's going to have serious competition going forward."

Steve Daheb, a senior vice president of Business Groups at Oracle, didn't come out and so clearly say that the company is focused on chasing down AWS, but he told Computerworld in an interview Friday that Oracle is all about the cloud.

"I think Oracle is all in on cloud," he said. "If you look at the investments we're making -- billions of dollars, thousands of engineers – I don't think there's an element of the company that hasn't changed to help make this transition."

Cloud computing has been an ever increasing hot spot for enterprises.

Companies may have started slowly, anxious about security and reliability issues early on, but they've largely overcome those concerns and are investing not only launching new services and apps in the cloud but also in moving legacy systems there.

Earlier this month, for instance, 451 Research released a report noting that a majority of enterprises expect to be running their workloads in the cloud within two years.

According to the report, the level of enterprise workloads in the cloud is expected to shift from 41% today to 60% by mid-2018, and 38% of enterprises say they will at least consider, if not prioritize, the cloud for all deployments.

That's the booming market that Oracle wants to get in on.

To that end, the company announced that it's launching a set of new cloud data centers, a low-cost infrastructure-as-a-service (IaaS) offering, and a new Oracle Dense Cloud IO bare metal cloud server product.

On Sunday, Oracle said it was acquiring privately held Palerra, a vendor of cloud security services. Oracle also is in the process of acquiring NetSuite Inc., a business software services and cloud vendor, for $9.3 billion.

"We're showing up with the right solution at the right time," said Oracle's Daheb. "Customers want someone who has a much more complete stack … We do have the whole package ready. We have the industry's most complete offering. A lot of what we're offering at OpenWorld is enhancements, extensions to what we offer today."

That, according to Daheb, is the trick.

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