Chris Murphy, Director of Cloud content at Oracle, wrote an article in Forbes after talking with Chairman and CTO Larry Ellison about integrated Oracle Cloud suites and how they affect Oracle’s future growth.

Companies are starting to turn toward integrated suites of Cloud applications as they begin modernizing old software systems. They’re looking for applications that can easily talk with one another. During Oracle’s third-quarter earnings call, Ellison said this is a big reason Oracle’s Cloud applications business is growing so fast.

He explained that customers don’t want to be responsible for the complex process of integrating all of their different applications and having them run on a variety of different vendors’ Clouds. This is why Oracle provides front- and back-office integration in its Cloud-based application suites.

Cloud Applications: Oracle’s Big Revenue Increase

Of Oracle’s $9.6 billion third-quarter revenue, Cloud services and license support revenue accounted for 69 percent—$6.7 billion. CEO Mark Hurd said that revenue for Oracle’s Fusion human capital management (HCM), enterprise resource planning (ERP), supply chain (SCM), and manufacturing Cloud applications grew 32 percent during the quarter. Revenue for its NetSuite ERP Cloud applications grew 30 percent. Overall, Oracle’s total net income increased to $2.7 billion.

Hurd also explained that companies that are leveraging on-premises applications from smaller providers might face a challenge because those companies may not be making the same type of investments into a Cloud-based suite of applications as Oracle is. Oracle has invested in training teams to specialize in helping move businesses from on-premises applications to modern, Cloud-based application suites.

The Future: Oracle Cloud Suites and Infrastructure

According to Larry Ellison, Oracle’s future rests on two strategic businesses—Cloud applications (led by Fusion and NetSuite) and Cloud infrastructure (including Oracle Autonomous Database).

Oracle Autonomous Database was just introduced last year but already has nearly 1,000 customers and added 4,000 new trials in the third quarter. This chance for automation has companies lifting and shifting existing data warehouses, running at a lower cost, and improving developer productivity. Work that used to take days or weeks can now be done within minutes. The Autonomous Database also improves security through its automated patching of system vulnerabilities. It can patch itself with no need for downtime, which saves time for IT staff.

Be sure to check out Oracle’s Top 10 Cloud Predictions for 2019 for more insights on the future of cloud.

For more information about how Cloud applications and infrastructure are becoming the future of Oracle’s growth, check out the full article in Forbes attached below.

Additional Resources

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