For someone who helps run one of the largest legacy tech companies in the world, Mark Hurd made some cloud adoption projections that might even give execs from cloud leader Amazon Web Services pause.
For example: Oracle’s co-chief executive said he expects a whopping 80% of all production applications to run in the cloud by 2025. Production applications are the bread-and-butter financial accounting, database, inventory tasks that companies rely on to make money and are thus very conservative about moving, or even touching. By his estimate only about 25% of those applications now run in the cloud.
To recap: in cloud computing, businesses put their data or run their software applications either in a private cloud—which they own and operate but which lets them turn on and off computing resources as needed. Or in a public cloud, which is a set of massive computing and storage resources that are shared by many customers. Amazon (AMZN) leads the pack there, with Microsoft(MSFT) and Google(GOOG) starting to give it a run.
But back to the predictions, Hurd also said that in ten years time, he expects all (100%) of test and development jobs will run in the cloud. These are services that corporate developers use to fully test out custom or adapted software before deploying. Test and development now soaks up 30% to 40% of most companies’ total information technology budget, Hurd said.
And, nearly all data storage will also flow to the cloud by 2025, Hurd said during his Oracle OpenWorld 2015 keynote on Monday morning. He did not specify public or private cloud, so draw your own conclusions there.
This is an interesting note to sound since Oracle still makes the bulk of its money selling software that runs on premises, in a customer’s server room or data center.
Just a few weeks ago, executives from AWS told attendees of that company’s annual conference that they don’t expect all companies to move out of their own data centers any time soon. So it appears that Oracle has more aggressive cloud adoption stance than the cloud leader. But then again, what better way to signal to the doubting masses that Oracle is serious about this transformation?
But the journey begins with a single step and thus far the cloud news out of Oracle OpenWorld after executive chairman Larry Ellison’s Sunday night keynote comprised a collaboration with Intel (INTC), a couple of new software applications delivered as a service, but not a word about Oracle’s plans to offer public cloud computing capabilities.
Read more in The redemption of Oracle’s Mark Hurd.
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