Oracle continues to be a revolutionary leader, recently referred to as the Tesla of IT for their approach to innovation. Oracle’s unique advantage is they are viewed and valued as a software company, while still holding ownership over hardware assets. They have a whole new way of doing things, evident by what we witnessed at this year’s Oracle OpenWorld in San Francisco.
This year’s theme at OpenWorld oozed CLOUD, as it should have. Enterprises are slowly moving to the cloud and Oracle is intersecting just in time with a new suite of services. Homogeneity is what makes cloud successful and it’s tough to have homogeneity unless you own the applications stack, which Oracle does. As a proven powerhouse, Oracle is celebrating a new era of computing.
Larry Ellison kicked off OpenWorld Sunday evening with his keynote, explaining how the industry has evolved into the cloud from SaaS models. Now that the world is figuring cloud out, Oracle is gaining momentum having the most enterprise applications running in the cloud. Oracle started redeveloping their applications for the cloud 10 years ago and they have been entirely rewritten to run on Fusion middleware.
Oracle’s 6 design goals:
- Low Acquisition Cost and TCO
- Standards (SQL, Hadoop, NoSql, Java, Linux)
- Security (Last but not least!)
Ellison described the shift in the competitive landscape, saying Oracle no longer considers SAP or IBM competitors in terms of cloud. Only Microsoft is competing with Oracle at all three levels – IaaS, PaaS, SaaS. In 2015, Oracle expects to sell 50% more SaaS than Salesforce, which is currently the market leader.
Mark Hurd’s Monday keynote delivered some bold predictions regarding Oracle’s 2025 vision.
- 80% of production apps will be deployed in the cloud (25% currently running).
- Two suite providers will own 80% of the SaaS market. Only 20% of the SaaS market will be held by point providers.
- All new testing and development will run in the cloud. Today, 30-40% of IT spending is in these areas.
- By 2025, virtually all enterprise data will be stored in clouds. Why? Better economics, easier access and real-time availability.
- Enterprise clouds will be the most secure environments in the world.
Despite bold predictions on moving to the cloud, Oracle understands there will still be on-premise environments a decade from now. Hurd emphasized on-premise and cloud will need to coexist over the next decade in order to make a smooth transition.
“You can have precisely what you have in your data center in the cloud. Move workloads, data, and jobs from on-premise to cloud with the touch of a button. We will lead this, we will drive this.” – Mark Hurdhttps://www.slideshare.net/slideshow/embed_code/key/bAuJ3QSKSkLhtQMark Hurd: On-Premise and Cloud Will Coexist a Decade From Now. Who’s Best Positioned to Deal with Both? from Oracle
Over the last quarter, Oracle has acquired over 200 cloud ERP customers. Businesses using the company’s enterprise resource planning solution include Athenahealth, Australian Finance Group, Boise State University, Evite, Irving Materials, Lumosity and Tower Ventures. Oracle’s government customers are also seeking modernization in the cloud. Paul Pauesick, director of IT for the Kansas City Board of Public Utilities said he is now more effective at change management because he has more time to focus on it. “I’m not hardware sizing or messing with servers and racks, fire suppression and general infrastructure. I can concentrate on the applications themselves because those things are all gone” he said.
It was announced at OpenWorld that Oracle cloud ERP is branching out into manufacturing, as well as supply and demand planning with order management and supply chain management (SCM) applications.
Oracle Manufacturing Cloud allows users to design manufacturing processes and standards, create and manage work orders, and monitor shop-floor status. It has a graphical editing tool for building the sequence of manufacturing operations and integrates with Oracle cloud ERP software for product lifecycle management and product master data management, which can streamline product innovation from idea to manufacturing.
The Internet of Things is no longer just marketing hype—industries of all kinds are finding ways to use data collected from sensors and devices over their networks. Oracle introduced their Internet of Things Cloud Service, which can connect to any device to generate data while extending business processes within enterprise applications. This will lead to faster development of IoT applications, with preventive maintenance and asset tracking pre-integrated with other Oracle systems such as Oracle PaaS, Oracle SaaS, Oracle JD Edwards, Oracle E-Business Suite, and Oracle Fusion.
Meanwhile, the Oracle API Manager Cloud Service will help developers create and expose APIs to internal or external consumers quickly, but without compromising security.
Earlier last month, JD Edwards announced the release of JD Edwards EnterpriseOne version 9.2 to facilitate SMART (Strategic, Mobile, Architected for Real-Time) change. JD Edwards has invested heavily in providing transformational business solutions to future proof and address the demands of the digital economy. EnterpriseOne Release 9.2 provides customers with the choices to run their business their way.
WhiteLight Group Partner Paul Demes gave a presentation Maintaining Modern ERP: The Importance of Staying Current in which he discussed why it’s important for organizations to stay current with their ERP and the advanced capabilities and benefits realized by doing so.
Business Impacts of using a modern ERP system
- Better Responsiveness
- Enhanced Revenue Opportunities (Take advantage of disruptive technologies such as Big Data and IoT to improve operations and the customer experience).
- Reductions in Cost (Streamline operational processes).
- Governance and Regulatory Compliance
- Minimized Business Disruption (Avoids “rip and replace”).
- Attract and Retain Talent
Canon Imaging and Information Solutions also invited us to speak multiple times on their stage, where we highlighted examples of cultural change management when going paperless. You can learn more about going paperless in our new eBook Going Paperless with ERP.
As always, OpenWorld was a great opportunity to learn about what Oracle is up to, network with others in the industry and enjoy what the beautiful city of San Francisco has to offer. If you have any questions regarding the announcements made at OpenWorld, we would be happy to discuss them with you. Contact us here and we will be in touch.