Oracle: between the cloud and on-premise

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Poston Thu, 02 Oct 2014 5:31 pm

During Oracle Open World, the keyword of the event was " " cloud, more specifically the repositioning of the company to a supplier of applications, platforms and on-premise infrastructure to a cloud player.
However, for company executives, the transition to the new model still holds plenty of space to local structures, the so-called on-premise.
\"The goal is to triple the revenues of software-as-service (SaaS) next year, but without diminishing the share we have in on-premise,\" said Eduardo Lopez, VP of architecture and sales Consulting for Latin America.
This billing, according to the Executive, comes from the work of the company in approaching smaller customers who have interest in adopting it structures with suppliers so far with a reputation for being elitist, as Oracle.
However, for larger enterprises, Lopez believes the hybrid Cloud architecture, with data and applications divided between external and local data centers, is what will give competitiveness to Oracle, especially when dealing with large contracts and most protected sectors, such as financial and public.
Fernando Vendramini, VP of Managed cloud services of the multinational in Latin America, accompanies the thought of López. For him, at first the primary function of the company is to enable the hybrid cloud to companies.
\"This is the first step for clients that require a certain degree of specificity in their processes. Later, the plan is to move gradually to a public increasingly cloud, implementing safety and eliminating redundancies, \"predicts Vendramini.
For the future, specifically for software, Lopez believes the adoption of the cloud will be further accelerated.
" for applications, I imagine that in a short time our base should reach 90% and 10% with SaaS solutions installed in local infrastructures ", said the Executive.
For analysts, the company's investment in to position itself as a company now focused on services and applications in the cloud is a manoeuvre to counterbalance the downfall of your earnings with sales of software licenses.
According to data from Bloomberg, Oracle reported a profit in the first quarter of fiscal year 2015, but it was below market expectations. In addition, the forecast for the second fiscal quarter of this year also fell short of the expected.
The results are determining a transition from the sales model and even the company's administration, of which the most visible was the output of the day-to-day operations of the founder of Oracle, Larry Ellisson.
Technology market analysts point out that Oracle is at the moment for a situation similar to that of IBM in the early 90, when the rise of low-platform computing dethroned the mainframe, until then the flagship of the company.
Oracle has spent billions on acquisitions in recent years, but its core business remains database, in which the company has a great power to dictate prices and constantly generates revenue with upgrades and support. The operating margin reaches 47%.
The splendid cradle is affected by several other trends for some time: open source databases (to which Oracle reacted by buying the Sun), and, more than that, cloud computing and big data.
The problem, as evidenced by testimonials from López and Vendramini, is how to continue the migration to the new models, given the new demands but maintaining the profitability of installed base.
The problem was that one day IBM faced: a pioneer of new databases, the company scoffed at the idea of selling the new servers due to fear of killing the goose that lays the golden eggs, the good old maniframe.
In the meantime, new competitors, such as Oracle.
* Shappy covers the Oracle Open World in San Francisco at the invitation of Oracle.

Source: http://www.baguete.com.br/noticias/02/1 ... on-premise
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Adriano Alves
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