Although he is not backward about coming forward at the best of times, Oracle Chief Technology Officer Larry Ellison has been talking up his outfit’s Cloud business lately, claiming it is doing rather well because if its SaaS presence.
Ellison claims Oracle’s cloud business is “defying conventional wisdom” by accelerating while it expands and this is because of its presence in the SaaS market where rivals are not competing.
“We think we have a fighting chance to be the first SaaS company to make it to $10 billion in annual revenue,” Ellison said.
Oracle is a number two SaaS vendor and had a total SaaS and PaaS revenue of $2.2 billion during fiscal 2016, up 49 percent from the year before. The top SaaS vendor, Salesforce made $6.67 billion in 2016 and expects its 2017 revenue to be $8.08 billion.
Public cloud IaaS leader Amazon Web Services said in April that it’s on track to hit $10 billion in revenue this year.
The cloud accounted for around eight percent of Oracle’s quarterly revenue, but this business to continue growing even faster in Oracle’s fiscal 2017.
Ellison also said Oracle is seeing “a huge amount of demand” for IaaS from its existing SaaS and database customers, which wish to avoid the data migration costs associated with AWS and other cloud vendors.
Oracle has made significant data centre efficiency advancements and can now offer lower costs, better security and superior reliability than any other provider in the market, he added.