Oracle founder Larry Ellison has told the world that he expects Oracle’s IaaS and PaaS business to “accelerate into hyper-growth” over the coming year.
Strong SaaS sales dramatically improved the company’s fiscal in the fourth quarter and full-year 2017 results.
SaaS sales grew 76 percent to $1 billion in the fourth quarter pushing Oracle’s overall cloud revenues up 66 percent $1.4 billion. Total revenues for the quarter rose four percent to $10.9 billion.
Although IaaS and PaaS growth was 45 percent in the fourth quarter, rising to $403 million, Ellison predicted Oracle’s IaaS and PaaS business will soon grow so fast it will “be even bigger than our SaaS business”.
He said that during the new fiscal year, Oracle’s PaaS and IaaS businesses to accelerate into hyper growth, the same kind of growth it was seeing with SaaS.
Ellison, who is now Oracle’s CTO, also used the call to make his ritual traditional jibe at Salesforce, claiming fiscal 2017 was the second year in a row Oracle sold more cloud annual recurring revenue than its SaaS rival.
He said that Oracle’s rapid SaaS growth was the driving force behind Oracle’s revenue and earnings growth in Q4.
“The reason we are confident that we will pass Salesforce is because we have a three-fold SaaS application suites for ERP, for HCM and for CRM including financials, procurement, supply chain, manufacturing, human resources, payroll, marketing, sales and service. Salesforce in contrast only competes in three of these nine market areas,” he said.
Gartner is forecasting an uptake in public cloud spending and IaaS is going to be the main winner.
It looks like resellers that have taken the effort to specialise in infrastructure as a service (IaaS) are going to be laughing all the way to the bank for the next year or so.
Beancounters at Big G say that IaaS as the main area to benefit from a general upswing in customer spending on public cloud services.
They expect worldwide spending on public cloud services to increase by 18 per cent this year, which equates to $246.8 billion.
The IaaS market is expected to grow by 36.8 percent with SaaS not too far behind with a 20.1 percent. The SaaS market is expected to slow a bit quicker because it is further along in the maturity cycle and a lot of customers are already using HR and sales applications in the cloud.
Customer attitudes towards public cloud have improved as firms like Amazon have been successful at promoting the idea of putting data onto their platforms. Sid Nag, research director at Gartner said that while fears about security are still out there but there is also a pressure towards digital transformation strategies and an acceptance from most users that the public cloud will play some role in their future.
“The overall global public cloud market is entering a period of stabilization, with its growth rate peaking at 18% in 2017 and then tapering off over the next few years,” he said .
“While some organizations are still figuring out where cloud actually fits in their overall IT strategy, an effort to cost optimize and bring forth the path to transformation holds strong promise and results for IT outsourcing (ITO) buyers. Gartner predicts that through 2020, cloud adoption strategies will influence more than half of IT outsourcing deals,” he added.
Most IT directors want to buy cloud services from one provider but most have ended up buying stuff from three or more vendors.
That’s according to Martin Bishop, from Telstra, who released a survey showing two thirds of decision makers would like to plump for one vendor rather than many.
Bishop said that it’s a buyers’ market for cloud services but using multiple vendors could well mean a complex bank of clouds that make it difficult to manage and to control.
The research shows that four in ten of UK enterprises have adopted IaaS and another forty percent more have plans to adopt it.
Deployment of IaaS varies with manufacturing (61%), professional services *54%) and finance and insurance (46%) likely to use the cloud tech.
The company reached its findings by using Vanson Bourne to canvass 675 IT decision makers across five different geographies – the organisations are enterprises in the private sector with 250 or more employees.
By 2018, spending on public IT cloud services is set to be worth $127 billion.
That’s according to research from IDC, which indicates a five year compound annual growth rate (CAGR) of 22.8 percent – six times the rate for the IT market overall.
The spending is a result of the conjunction of IT vendors offering more services and buyers wanting to buy more kit.
IDC thinks much of the growth is likely to be industry platforms with their own communities.
The news is good for developers, as their numbers will triple and create as many as a 10 time increase of new cloud offerings.
And the offerings will be strategic rather than tactical.
IDC expects a great deal of consolidation in the cloud services industry as a result of increased competition.
Software as a service (SaaS) will dominate public IT cloud services spending – accounting for as much as 70 percent of expenditure this year. That’s because customer demand is chiefly at the application level, followed by infrastructure as a service (IaaS).
Channel players are finding it tough to cope with the fast change in cloud services, according to a report from MTI.
MTI surveyed both UK resellers and services providers and 77 percent of those responded said that Infrastructure-as-a-Service (IaaS) was the top priority for their clients.
Less than half provide IaaS directly and only 22 percent can provide the service through vendors, MTI claimed.
That, claimed Chris Roberts, channel sales leader at MtI, meant there’s a gap between what clients want and resellers offer.
“It’s very difficult for resellers to be flexible enough to provide solutions as and when they come into fashion when demand from clients peak,” he said.
Nearly two thirds of resellers and service providers generate 40 percent of their turnover services.
HP said that its distributor and partner Westcoast will use its Converged Cloud offering to woo the reseller base.
The investment is over £1 million and will mean Westcoast will offer its resellers cloud services, to manage Microsoft Lync, Exchange and SharePoint in the distributors’ IL3 data centre.
The move, said HP, means that Westcoast customers – that is to say its resellers – will be able to use current credit lines as well as take part in a partner programme which includes training and support.
Duncan Forsyth, Westcoast’s MD said that the era of onsite IT is becoming IT in the cloud. “We want to support both,” he said. HP Converged Cloud will let his company deliver IaaS (infrastructure as a service) and SaaS (software as a service) for resellers with a minimal need for capital investment.
The system will effectively be based on HP products including Proliant Bladesystem c7000 enclosures with BL460c Gen 8 blades using Intel Xeon chips. The system will also use SoreServ storage systems, HP tape libraries and HP 5400 Switch series.
HP exec Michael Clifford said that managing and using data centres “frighten many resellers” but using its systems will help resellers to see clearly through the mists of the cloud and offer quality cloud services.
Market research company IDC has gazed in its crystal ball or inspected a set of entrails and has concluded that worldwide spending on public IT cloud services will be worth $47.4 billion this year.
And there’s more to come, according to the auspices. By 2017, spending will reach $107 billion meaning that between then and now sales will grow by 23.5 percent, compounded annually.
The analysts believe that cloud services are blowing into a chapter two phase where mobile, social and big data will become interdependent.
Chief IDC diviner Frank Gens calculates thus: “Over the next several years, the primary driver for cloud adoption will shift from economics to innovation as leading-edge companies invest in cloud services as the foundation for new competitive offerings. The emergence of cloud as the core for new ‘business as a service’ offerings will accelerate cloud adoption and dramatically raise the cloud model’s strategic value beyond CIOs to CXOs of all types.”
Virtual private clouds help to persuade organisations that the cloud is not dangerous but instead has a silver lining.
By 2017, according to Gens, public IT cloud services will account for seventeen percent of IT product spend. Software as a service (SaaS) will keep the biggest chunk of the pie, and account for 59.7 percent of revenues in 2017, while fast growing categories include the dreadfully named “platform as a service” (PaaS) and the almost equally gruesome “Infrastructure as a Service” (IaaS) with compound annual growths of 29.7 percent and 27.2 percent.
Linux distributor Red Hat is becoming all moist about OpenStack which it thinks will have as much impact as Linux did on the networking environment.
The company has produced a fully-supported OpenStack distribution so its customers can deliver open-source infrastructure-as-a-service (IaaS) clouds.
The announcement means that its OpenStack distribution graduates from a “community release” to a fully supported offering.
According to the company Red Hat wants to position OpenStack as a future cloud platform and is building it into a whole set of announcements and programmes.
Karl Stevens, public cloud solutions architect at Red Hat said that OpenStack was going to be the next Linux.
The announcement seems a little premature. OpenStack isn’t yet fully integrated with Cloudforms. If it manages this then it should help those enterprises who already have virtualised servers, to move on to a full IaaS cloud.
Red Hat has come up with a new partner network with the catchy title “Red Hat OpenStack Cloud Infrastructure Partner Network.” This network is intended to provide an ecosystem around the new stack.
Alvea Services has launched its Infrastructure Service, aimed at helping companies with additional virtual servers.
The managed security and cloud-based computing provider, says its new Infrastructure-as-a-Service (IaaS) has been designed for organisations that may need to vary their computing capabilities at a moment’s notice to match the changing needs of their business. Rather than have to invest in an IT infrastructure that may lie redundant when full capacity is not required, they are claimed to be able to use Alvea’s new service to quickly and easily provision additional virtual servers when they need them.
The company says this is is particularly important for project-based businesses, those that operate around seasonal fluctuations in demand or those that may need additional resource for testing or short-term data processing.
A key feature of the new service is its secure data seeding capability, either via encrypted hard disk or high-speed internet transfer, which allows businesses to move their data to the cloud quickly and securely. There is also a simple user interface to give clients instant provisioning of IT security and cloud services with a pay-as-you go model so that IT departments can react quickly to the changing needs of their businesses and only pay for the computing power they use.
The new service has been built around a UK-based data centre to comply with data “sovereignty” and security requirements and is operated by IT security and data centre management specialists.
The service is delivered and supported by a network of IT and security resellers that provide technical support and advice on how Alvea Infrastructure can be integrated into an organisation’s existing IT environment.
To demonstrate the service, Alvea is offering businesses free trials of the service, for a limited period of time, and inviting them to ‘try before you buy’ to test out the flexibility of the new service.