Oracle targets cloud computing for revenue opportunities
Monday, April 30, 2012
As more companies leverage cloud computing technology to lower their IT spending, simplify their operations and improve their database performance, Oracle believes its company's success lies in developing solutions for this emerging platform.
A recent Barron's report by Mark Veverka suggested that Oracle co-president Mark Hurd is backing the cloud as the database giant's next conquest and asserted the software delivered via the internet is the next big IT trend.
The cloud is expected to be a profit-booster for many companies. In fact, Veverka cited Morgan Stanley software analyst Adam Holt, who has suggested that Software-as-a-Service accounts for only 10 percent of the $150 billion enterprise software market. By 2017, this figure is expected to reach $180 billion, with SaaS more than doubling to $36 billion.
Other IT news outlets have reported Oracle's desire to carve out a bigger piece of the cloud. Network World's Brandon Butler recently indicated that the database giant announced it will provide SaaS, Platform-as-a-Service and social solutions alongside their traditional offerings. The writer also cited a TalkinCloud report that has revealed Oracle has already found success in the SaaS market, with the company's revenue in this area surpassing $1 billion.