Tag: PaaS

Ellison bets on IaaS and PaaS business

Larry EllisonOracle 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.

Cloud of unknowing descends on public IT

Clouds in Oxford: pic Mike MageeMarket 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.