Oracle must stay in control of cloud transformation

Laurent Lachal/Ovum
06 Oct 2014
00:00

Oracle’s transformation into a cloud-centric business is not the first important change that the company has gone through.

It has grown through the beginnings of the database era, through the client-server age, the birth of ERP, and the emergence of SOA.

Nevertheless, transitioning from an upfront license plus maintenance business model to one based on subscription revenue is difficult. It impacts the business at all levels, from strategy to accounting, sales, and customer relations.

This is why Oracle has been particularly diligent in refocusing its sales force and processes to push its public cloud offerings, for example. The transition is also traumatic for investors as it impacts revenue and profitability levels.

This is why Oracle is so keen to emphasize that it is in control, because this control is paramount if the company is to achieve its revenue and profitability ambitions in a cloud transformation context.

Laurent Lachal is a senior analyst for infrastructure solutions at Ovum. For more information, visit www.ovum.com/

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