Aside from the NetSuite acquisition announcement, McGrath branded Oracle’s fiscal first quarter and earnings call as “relatively uneventful”, with the vendor stashed up on product and strategy announcements for its annual conference, Oracle OpenWorld, which starts this week.
As revealed by Oracle chairman and CTO, Larry Ellison, the tech giant will use the conference to introduce the second generation of its Infrastructure-as-a-Service.
“Our Generation2 IaaS delivers twice the compute, twice the memory, four times the storage and ten times more I/O at a 20 per cent lower price than Amazon Web Services,” Ellison claimed.
“IaaS represents a huge new cloud opportunity for Oracle to layer on top of our rapidly growing SaaS and PaaS businesses.”
Undoubtedly, McGrath believes Oracle’s cloud capabilities will remain the central basis on which announcements and strategy road maps presented at Oracle OpenWorld 2016 will build.
More specifically, however, TBR expects Oracle to focus on its Oracle Cloud Platform advancements, particularly Database 12.2, and the infrastructure improvements that will help it better compete against IaaS leader Amazon Web Services.
“We anticipate customers will voice praise and criticism around the database update that is being launched only in the cloud at first, becoming available on premises later,” McGrath said.
“Though this tactic aims to get more customers to move to the Oracle Cloud, TBR believes Oracle will need to be sensitive to its on-premises customers not yet ready to move to the cloud, but in need of the product updates that fall within their maintenance agreements.
“Though less certain to be a major point at the event, a solid industry-oriented cloud application storyline would provide Oracle a basis on which to accelerate adoption of applications in a highly competitive market, as Oracle aims fiscal 2017 at making headway on its goal of $10 billion in annual SaaS and PaaS revenue.”
Consequently, McGrath believes Oracle has an advantage in its base of largely acquired, industry-specific software expertise, with early translation of these differentiating capabilities to the cloud portfolio.
Various cloud solutions launched thus far in 2016 have catered to financial services, healthcare, communication service providers, retail and hospitality, within which Oracle has strong legacy portfolios and can differentiate in the cloud market by drawing on specialisations.
“Oracle’s industry expertise will remain valuable on premises, but Oracle has the opportunity to support differentiation of cloud applications in a crowded market,” McGrath added.
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