Archivo de la categoría: Oracle

financial, Financial Results, News & Analysis, Oracle

Oracle records 40% growth in cloud business

OracleOracle announced its quarterly results with revenues at $9 billion, down 3% in comparison to the same period last year, though the cloud business recorded growth of 40%.

The company missed analyst expectations for total revenues, though earning per share was up at $0.64 versus the estimates of $0.62. Oracle played up growth in its cloud business, particularly PaaS and SaaS, where revenues were up 57% to $583 million. Total revenues for the cloud business stand at $735 million, though IaaS earnings were down 2% to $152 million.

“Our Cloud SaaS and PaaS revenue growth rate accelerated to 61% in constant currency in Q3,” said Oracle CEO, Safra Catz. “This dramatic revenue increase drove our non-GAAP SaaS and PaaS gross margins up to 51% in Q3 as compared with 43% in Q2. Our cloud business is now in a hyper-growth phase. Our gross margins are climbing toward our target of 80%.”

Although generally considered in the industry to be playing catch up, Oracle has been demonstrating healthy growth over recent months in comparison to competitors. The company claims that it grew twice as fast as Workday and three times faster than Salesforce.com, with the latter receiving particular attention on the earnings call.

“Oracle is now selling more new SaaS and PaaS annually recurring cloud revenue than any other company in the world including Salesforce.com,” said CTO Larry Ellison “We are growing much faster than Salesforce.com, more than twice as fast. Because we sell into a lot more SaaS and PaaS market than they do. We compete directly with Salesforce.com in every segment of the SaaS customer experience market including sales, service and market.”

Ellison also highlighted the potential for future growth in the SaaS segment, where Oracle operates in markets Salesforce.com doesn’t, in particular enterprise resource planning, ERP, and human capital management, HCM. The company is seemingly adamant in beating Salesforce.com at its own game to become the largest SaaS and PaaS company worldwide.

“Oracle Fusion ERP is the overall market leader in the enterprise cloud ERP market. I should say we have more than 10 times the number of ERP customers than Workday. And ERP has always been a much larger market than CRM. Salesforce.com is missing all of that ERP market opportunity,” said Ellison. “And that in term it should make it easy for Oracle to pass Salesforce.com and become the largest SaaS and PaaS cloud company in the world.”

The company anticipates growth will continue in the next quarter, though analysts anticipate a number of challengers to Oracle’s retained customers over the coming months. With competitors, including AWS and Microsoft, expanding their offering in the database business, the flexibility of Oracle’s proposition and pricing could be called into question.

“People are coming after us, because we are by far the market leader in database. If you’re in the database business, the only one you can come after is us,” said SVP Investor Relations, Ken Bond “So, of course, Amazon, they’re going to be in the database business too is coming after us, and of course Microsoft wants to be bigger in the database business, they have to come after us.”

M&A, News & Analysis, Oracle, Ravello Systems

Oracle buys enterprise workload manager Ravello Systems for a reported $500m

OracleOracle has disclosed details of its acquisition of workload management specialist Ravello Systems. No financial terms were revealed over the deal, but sources familiar with the company value the sale at $500 million, according to venture capital news site Venturebeat.

Ravello, which makes tools that help enterprises manage their enterprise workloads in the cloud, signed an agreement to be acquired on February 22 with all employees joining Oracle’s Public Cloud division.

The new management features will help Oracle’s Public Cloud beef up the performance of its computing, storage and networking workloads. Oracle has launched a number of initiatives aimed at positioning its cloud business more favourably against market leaders Amazon Web Services (AWS) and Microsoft Azure.

In February BCN reported how Oracle had added new Platform-as-a-Service (PaaS) and Infrastructure-as-a-Service (IaaS) cloud offerings from its Slough data centre, which currently caters for 500 UK and global customers. Clients from both the private and public sector are being promised tailored versions of the new services, which include Oracle’s Database, Dedicated Compute, Big Data and Exadata cloud services.

Palo Alto based Ravello was founded in 2011 and was balancing the cloud workloads for clients such as Arista, Brocade, Red Hat, SUSE and Symantec. In total it had raised $54 million in funding from venture capitalists such as Sequoia Capital, Norwest Venture Partners and Bessemer Venture Partners because its Cloud Application Hypervisor offered enterprises a way to unify the application environment across public and private clouds.

Ravello CEO Rami Tamir explained on the company web site why the technology will be part of the Oracle Public Cloud. “This agreement will accelerate our ability to reach more customers,” said Tamir, “our top priority is ensuring an uninterrupted service and seamless experience for you and all of our customers and partners. Rest assured, Ravello’s service will continue as is. Ravello will join Oracle’s IaaS mission to allow customers to run any type of workload in the cloud.”

Consumer Tech, Mobile, News & Analysis, Oracle, Samsung

Samsung and Oracle in mobile cloud development pact

mobile online datingSamsung and Oracle are to combine their respective device and cloud expertise in a pact to jointly create tools, apps and enterprise systems for the mobile world.

The two partners are working with systems integrators to help industries make use of their existing systems in the cloud, modernising them to take full advantage of the new mobile and cloud and create cost efficiencies. Another joint ambition is to create a wider set of Apache Cordova plug-ins and code samples to help customers modernize their enterprise applications.

The objective, according to Young Kim, VP of the Enterprise Business Team at Samsung Electronics, is to use the cloud to create better mobile user experiences out of their collective expertise in enterprise software, mobile cloud and device features.

Samsung and Oracle want to help developers and solution providers to create the next generation of mobile applications and services and drive ‘a new frontier of productivity’ according to Kim.

Samsung and Oracle have worked with systems integrators on new cloud based mobile and Internet of Things systems, which will be unveiled at Mobile World Congress in Barcelona. These include an HCL Technologies-inspired predictive maintenance system for Samsung Gear S2, the Oracle IoT Cloud Service and the Oracle Service Cloud. This digests data and uses this intelligence so that enterprises can cut the costs of high value asset maintenance. Another invention, from Sofbang’s contracts management team, speeds the management and approval of contracts through notifications on Samsung Gear S wearables. The data is protected by Samsung’s cloud-based KNOX mobile security. Another system that combines wearable devices and the cloud is L&T Infotech’s, which hooks into the Oracle IoT Cloud Service using Samsung tablets, smartphones and wearables to increase asset operating life, decrease downtime and cater for proactive maintenance.

Samsung said it is beefing up its support of Apache Cordova with extra plugins for developers to use in the Oracle Mobile Application Framework and Oracle JavaScript Extension.

“The support and unique additions found in Samsung hardware helped us create differentiated end user experiences in weeks with Oracle Mobile Cloud Service,” said Mia Urman, CEO at development partner Auraplayer.

hybrid cloud, News & Analysis, Oracle, Research

Cloud merits acknowledged but adoption concerns linger – Oracle report

cloud question markCloud technology is almost universally acknowledged for its catalysing effect on invention and customer retention, according to new research from Oracle. However, there are still major barriers to adoption.

In Oracle’s study 92% of its sample group of industry leaders testified that the cloud enables them to innovate faster. It also helps companies keep afloat better, with nearly three quarters (73%) reporting that using cloud technology has helped them to retain existing customers more effectively. The cloud also comes out well as a strategic weapon, with 76% of enterprises saying that the newer, more flexible model for handling information helps them to win new customers.

However, the study conducted for Oracle by IDG Connect indicates there is much room for improvement in the adoption of cloud computing. Only half (51%) of the survey sample say their businesses will have reached cloud maturity within two years. According to an Oracle statement, this is a consequence of current uncertainty about moving to the cloud.

Though a compromise between privately owned IT systems and publicly available services is seen as the obvious choice, there are grave concerns about hybrid cloud adoption. Instead of getting the best of both worlds with a hybrid system, many users (60%) reported that the thought of managing multiple IT architectures was off putting. There are fears about the reliability and availability of network bandwidth, which was cited by 57% of the survey as a barrier to adoption. The lack of trust in the relationship with IT suppliers was also a major concern with 52% of the survey sample. Meanwhile those building private cloud infrastructures continue to see security as the prime concern, according to Oracle.

Attitudes could change, but that involves converting the considerable opposition of cloud-sceptics.  There are still significantly large numbers of IT experts who say that winning over key business decision makers is their biggest challenge. This was identified as an issue for 29% of those surveyed.

Johan Doruiter, Oracle’s Senior VP of Systems in EMEA, remained optimistic. “As cloud rapidly reaches maturity, we are seeing a shift in how enterprises perceive the chief benefits and barriers to adoption,” he said. “Traditional concerns have been replaced by the operational worries.”

IaaS, News & Analysis, Oracle, Platform as a service, UK

Oracle launches a mission critical PaaS from its Slough data centre

OracleOracle has added new Platform-as-a-Service (PaaS) and Infrastructure-as-a-Service (IaaS) cloud offerings from its Slough data centre, which currently caters for 500 UK and global customers.

Clients from both the private and public sector are being promised tailored versions of the new services, which include Oracle’s Database, Dedicated Compute, Big Data and Exadata cloud services.

Oracles claims that it is offering enterprises a mission critical PaaS and outlined four main selling points for the new services. Clients will now be able to develop, test and launch applications much more rapidly and cheaply, it claims. No supporting figures were given to exemplify this, however. Secondly, the new service will give companies greater flexibility without compromising their security, Oracle claims.

It will also use Hadoop’s open-source software framework for storing data and running applications on clusters of commodity hardware. This, says Oracle, will provide massive storage for any kind of data, boost the available pool of processing power and allow the data centre to handle a far greater volume of concurrent jobs. Oracle claimed that this can be delivered as a secure, automated service that meshes with existing enterprise data in Oracle Database. The fourth plank of its new offering is instant access to a virtual computing environment to run large scale applications on the Oracle Cloud.

Oracle currently has 19 data centres running its Oracle Cloud from various points of the globe. Last week it announced the intention to open a new Cloud data centre in Abu Dhabi. Oracle will be investing in two new cloud sales centres in Amsterdam and Cairo along with new offices opening this year in Dubai, Dublin and Prague.

In December 2015, BCN reported that Oracle’s co-chief executive Safra Catz warned fiscal 2016 will be “a trough year for profitability as we move to the cloud.”

In January 2016, however, BCN reported that Oracle had announced aggressive expansion plans with a recruitment drive for junior and senior sales staff to be based in six cities across EMEA.

The cloud software giant is now actively headhunting for 1,400 new cloud sales staff to work out of sales HQs in Amsterdam, Cairo, Dubai, Dublin, Malaga and Prague.

EMEA, Enterprise IT, News & Analysis, Oracle, Recruitment

Oracle creating 1,400 new cloud jobs in EMEA

OracleOracle has announced aggressive expansion plans with a recruitment drive for junior and senior sales staff to be based in six cities across EMEA.

The cloud software giant is now actively headhunting for 1,400 new cloud sales staff to work out of sales HQs in Amsterdam, Cairo, Dubai, Dublin, Malaga and Prague. Oracle will be investing in two new cloud sales centres in Amsterdam and Cairo and new offices opening this year in Dubai, Dublin and Prague.

The new initiative follows a multi-billion dollar investment in a new portfolio of cloud computing services which Oracle claiming it now has ‘everything from secure computing infrastructure to enterprise cloud applications’. It currently offers 600 cloud applications to complement its on-premise hardware and software offerings. As enterprises move to hybrid cloud computing models, Oracle says it is now placed to help them manage their overall enterprise computing environment while simplifying the potentially difficult transition to the cloud.

Oracle claims that in the six months since June 2015 it has added nearly 1,500 new software as a service (SaaS) customers and 2,100 platform as a service (PaaS) customers.

Oracle president Loic Le Guisquet, said that though these are ‘exciting times’ for the software giant it will be very cautious about who it selects. “I want socially savvy, switched on individuals who can help customers respond to the digital imperative and make their businesses future proof,” said Le Guisquet, “we’re looking for people who want to be relevant to the biggest trends shaping business and technology.”

Experienced cloud sales staff may soon come at a premium as Oracle admitted it may try to attract staff from other operators. “Recruits may well come from a sales organization within another cloud technology provider,” said a spokesperson.

Other stated targets will be “people with experience in the lines of business we sell to like finance, marketing and HR,” according to Oracle.

Networks, News & Analysis, Oracle

Oracle gets tax breaks to build cloud campus in Texas

OracleOracle has unveiled plans for a technology campus in Austin, Texas in a bid to expand its workforce by 50% in three years. It’s looking for millennials who want to work and live on site and sell cloud computing systems, by creating a combined office and housing complex.

Oracle is also to close its Oregon offices and incorporate the facilities in the new Texas complex. No details were given over staff re-location.

The move is part of a state initiative, including tax breaks and low regulation, as Texas positions itself as a home for innovation and technology. “I will continue to pursue policies that invite the expansion and relocation of tech companies to Texas,” said Texas State Governor Greg Abbott.

The site will include cheap accommodation as Oracle competes for talent in a region with a high concentration of technology start-ups. Its recruitment drive will be aimed at graduates and technical professionals at early stages in their career with the majority of new jobs being created in Oracle’s cloud sales organisation, Oracle Direct.

Oracle is to work with local firms in building the campus, the plans for which include the consolidation of Oracle’s facilities in Oregon. In the first phase it will build a 560,000 square foot complex on the waterfront of Austin’s Lady Bird Lake. It is also building a housing complex next door, with 295 apartments, for employee housing.

Austin’s technology community is teeming with creative and innovative thinkers and the town is a natural choice for investment and growth, claimed Oracle Direct’s Senior VP Scott Armour. “Our campus will inspire, support and attract top talent, with a special focus on the needs of millennials,” said Armour.

Austin’s biggest problems are affordability and mobility, according to Austin’s Mayor Steve Adler. “I look forward to working with Oracle to tackle our biggest challenges,” he said.

Enterprise IT, Financial Results, News & Analysis, Oracle, Platform as a service, Software as a service

Oracle cloud sales boom but at what price?

Oracle plane However Oracle’s co-chief executive Safra Catz warned fiscal 2016 will be “a trough year for profitability as we move to the cloud.”

Oracle’s total revenues were down by 6% to $9.0 billion with the sales of ‘cloud plus on-premise software’ down 4% to $7.0 billion. Meanwhile, total cloud revenue has gone up in the last quarter by 26% (in US dollars) and Oracle made $649 million on pure cloud software. The two most successful categories of cloud software for Oracle have been SaaS and PaaS which accounted for $484 million, a rise of 34%. Cloud infrastructure as a service (IaaS) revenue was $165 million, a rise of 7%.

Expect the SaaS and PaaS revenue to grow by 50% in Q3 and 60% in Q4, said Catz. According to Oracle it won 100 Fusion Human Capital Management system contracts and over 300 Fusion Enterprise resource planning deals in the last quarter. Oracle said it is on target to sell and book more than $1.5 billion of new SaaS and PaaS business this fiscal year.

“We now have more than 1,500 ERP customers in the cloud, that’s at least ten times more ERP customers than Workday,” said Oracle’s other joint CEO, Mark Hurd. “It was a very strong growth quarter for our cloud business, with SaaS and PaaS bookings up 75% in constant currency and billings up 68% in U.S. dollars.”

Not everyone in Wall Street is convinced however. “While the company is showing some signs of cloud success, the meat and potatoes legacy database and app business is under major secular pressure,” FBR Capital Markets analyst Daniel Ives told MarketWatch.

Oracle’s Board of Directors declared a quarterly cash dividend of $0.15 per share of outstanding common stock.

cloud exchange, Datacentre, Equinix, News & Analysis, Oracle

Equinix creates direct link to Oracle Cloud Services via Cloud Exchange

CloudData centre operator Equinix has agreed to give its Cloud Exchange users direct access to Oracle Cloud Service, the software vendor’s public platform for infrastructure services.

Equinix claims that Oracle users will get quicker response times and better performance as data is accelerated through its Cloud Exchanges in its Amsterdam, Chicago, London, Singapore, Sydney and Washington data centres.

It should also provide a better framework to support the hybrid cloud systems that most enterprises run, as well as solid support for migrations to the cloud, according to Oracle. “It gives Oracle’s enterprise customers the flexibility to pick the network services best suited to their diverse workloads,” said Thomas Kurian, Oracle’s president of product development.

The Oracle Cloud aims to simplify the building of new applications and migration of existing on-premises applications to the cloud. The Oracle Cloud Platform offers customers and partners the same platform as a service (PaaS) foundation upon which Oracle runs its own software as a service (SaaS) offerings. According to Oracle 19 of the world’s top 20 SaaS providers now use its Cloud service. In October it announced that Oracle Cloud Services it launched 24 additional PaaS and IaaS services.

Oracle’s 400,000 customers include all 100 of the Fortune 100 companies and it has sold 1,000 ERP systems running in the cloud. By offering direct access on Equinix Cloud Exchange, Oracle said it can create much faster connections between the on-premise systems many companies still use and the Oracle public cloud.

“The addition of Oracle Cloud to Equinix Cloud Exchange helps our customers execute on their business strategies,” said Equinix CEO Steve Smith.

Cloud is the fastest growing part of Oracle’s business. It supports 62 million users and 23 billion transactions each day. Oracle Cloud runs on 30,000 devices and 400 petabytes of storage in 19 data centres around the world.

Datacentre, IBM, Intel, News & Analysis, OpenWorld 2015, Oracle, server

Oracle and Intel announce plans to ramp up the offensive on IBM in the cloud

Oracle openworld 2015Intel and Oracle are to build on a previous collaboration which saw them jointly take on IBM in the cloud computing hardware market. Now they are conspiring again, this time to target Oracle’s database and software customers, in a bid to get them to ditch their IBM computer servers and buy Oracle/Intel servers instead.

The new pact was announced at the opening of Oracle’s tech conference as Intel CEO Brian Krzanich took the stage of Sunday with Oracle CEO Mark Hurd. Project Apollo, in which the two manufacturers pooled engineers in a joint bid to investigate how massive cloud computing data centres can run faster using Oracle hardware with Intel chips, was pronounced mission accomplished.

On Sunday Hurd and Krzanich announced the new hardware partnership and a back up conversion programme. Oracle CEO Mark Hurd said ‘thousands’ of customers have dropped IBM for Oracle when running Oracle software. To back this up, Oracle launched a migration support programme. The ‘Exa Your Power Program’ (EYP) is aimed to help customers move their Oracle Database from IBM Power systems to Oracle Engineered Systems using Intel technology.

The EYP is a free database migration Proof of Concept study in which Oracle will assess a customer’s environment, create a database migration results report and show how it thinks the customer could significantly cut the time and costs of running critical database workloads.

“CSC has successfully migrated dozens of customers’ enterprise workloads,” said Ashish Mahadwar, Executive General Manager of Oracle’s Emerging Business Group. “We recently migrated an Oracle Database for a major insurance provider from IBM Power 7 to an Exadata X5 engineered system as a Proof of Concept.”

Mahadwar claimed that test results showed a Siebel Application runs four-to-ten times faster and ETL Processes running up to 12-times faster on Exadata.

Transformation of the enterprise is already underway with the continuous improvements in a vast software ecosystem that Intel and Oracle jointly deliver according to Mahadwar. “The Exa Your Power program will make it easier for customers to realize the benefits of moving to Intel architecture,” said Mahadwar.