Software giant Oracle will leave no stone unturned to become the number one player in cloud market soon.
Oracle Corp. President Mark Hurd earns an annual cloud subscription revenue rate of nearly $2 billion, which is industry's second-largest. Hurd also announced the aim of Oracle to be number one very soon in the cloud segment.
Big Potential in Cloud
Oracle sees huge potential of $10 billion in annual cloud subscription revenue from large applications customer base. It has penetrated only 5 percent of the installed base in cloud products. The company clearly sees green field opportunities in the marketing, service and ERP space. It sees $74 billion of addressable market for cloud apps.
Oracle operates in the multibillion dollar software development market with revenues exceeding $37 billion and a market capitalization of $187 billion. It is in direct competition with other software firms like IBM, SAP and Microsoft.
SAP as Rival
In cloud, SAP AG is its main competitor. SAP earns nearly 40 percent more from the cloud market.
Oracle plans to convince customers to extend on-premise installations by adding cloud modules in areas like marketing, talent management, procurement and other areas. It will aggressively pursue full-blown migrations of core on-premises suites to the cloud.
Customer 2 Cloud
Recently, Oracle announced the "Customer 2 Cloud" program to boost growth in cloud business. Through the program, it seeks customer migration from on-premise applications like human capital management and customer relationship management into Oracle cloud applications.
The C2C program may yield gains by way of additional customers from on-premise offerings in a SaaS model boosting revenue in the long term. The program also offers tools to make businesses ready for cloud.
Fusion Version Coming
Oracle is set to release version 9 of its Fusion applications products.