Multinational computer technology corporation
Oracle is to make 95% of its products available via the cloud by October of this year. The company, which has headquarters in Redwood City, California, United States, provides Enterprise Resources Planning software such as its Oracle E-Business Suite designed for SMBs and lager businesses. Only 65% of its products are currently available via the cloud, with the remaining 35% available on an 'on-premise' basis.
Despite getting into the cloud arena late, Oracle’s SaaS and PaaS activity has seen an annual 30% increase while its 'on-premise' software activity has seen a drop of 7%. The corporation has though suggested that both approaches will remain available to customers.
Some of the corporation's growth has been generated by the 76 acquisitions it has made over the last 10 years. To accommodate growth and interest the corporation will increase its Asia-Pacific sales staff.
Oracle's increased cloud activity is positive, but growth in the area has to take in the account the reduced margins received from subscription payments over customers purchasing on-premise licenses. Oracle's margin for SaaS and PaaS products was 52% in 2014, while margins for on-premise software licenses were 96%.
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