Oracle: Determined to challenge and defeat IBM and SAP

After Oracle formally acquired SUN in 2010, Oracle CEO Larry Ellison disclosed to the public that it will compete with and beat IBM in high-end systems and compete with SAP in the application area And beat it.

In 2013, Oracle's high-end M systems redefined extreme performance by defeating IBM Power systems in terms of price / performance and memory capacity. In addition, Oracle SaaS applications have been fully brought to market, with subscriptions up 35% by the end of the year. In 2014, IBM continued to evolve into a service company. The future of SAP is betting on a new platform. What are the new global expectations for Oracle? At a recent Oracle firm second-quarter earnings conference call, Ellison and Oracle CEO Mark Hurd conducted an in-depth analysis and forecast of the strategic focus of Oracle's 2014 strategy. The dramatic shift in enterprise IT continues with at least part of it being triggered by Oracle. Let's look at the ten major issues mentioned by Ellison and Hart. For the sake of understanding, here is a summary of two top executives' stance on Oracle and its future direction: Ellison: "We think including databases, cloud services (subscription volume increased by 35%) and integrated systems (subscriptions increased by almost 35% %), Will drive Oracle's business growth in 2014. "Hart:" We have a strong sales force that exceeded expectations in all sectors and we have very good results in Europe and the Americas And Latin America is equally impressive. "Overall, Ellison and Hurd highlighted SaaS and Oracle Cloud, Exadata and other Oracle integration systems as well as the top 10 insights for Oracle in 2014 Cloud-optimized Oracle Database 12c. 1) Oracle Corporation is the only enterprise-class technology company in the world that invests in and provides coverage of all three-tier cloud offerings for SaaS, PaaS and IaaS. "We wanted to provide IaaS to our customers while providing them with a highly differentiated platform-as-a-service (PaaS) that would give us higher margins and a highly differentiated enterprise-class cloud application. "Ellison said in a conference call:" Because we plan to be cost-competitive and price-competitive at the infrastructure level, while achieving a highly differentiated advantage at the platform and application level. "Ellison concludes with Oracle's statement that in all three Stratus unique advantages: Platform: "We think we will be very powerful platform because we have two major platform brands: including our database brands - Oracle Database 12c, and programming language brand - Java. Therefore, we than Any SaaS competitor has a more powerful platform. "Infrastructure:" At the infrastructure level, we plan to be more price-competitive than Amazon, Microsoft Azure and Rackspace, so we plan to do what I call commercial - - The commercial infrastructure as a service market is actively competing for the word commercial and Not a good word. "Application:" We have more enterprise-class SaaS applications than any other cloud service provider and we will continue to expand our product offering. "Oracle Fusion Cloud Applications for HCM, CRM and ERP all have A fully simplified user interface and an integrated social network make our enterprise applications as easy to use and familiar as Facebook while giving business associates and customers better collaboration and teamwork.All these new application interfaces are designed for Modern mobile devices like mobile phones and tablets. "2) Significant growth for Oracle SaaS applications saw a 35% increase in single-quarter subscriptions and triple-digit growth for some of the converged SaaS offerings. Mark Hurd, the president, told analysts: "In the cloud, we achieved a 35% increase in subscriptions and a significant increase in all major product lines. The integration of SaaS's HCM, sales automation and ERP even enabled Three-digit growth. "The number of our customers is growing rapidly and the size of the contract is expanding, and hundreds of customers are now on-line converging SaaS." Subsequently, Hart said: "As the company that has the largest cash flow in the enterprise IT space, Our cloud computing and integrated systems businesses have high growth throughout the enterprise. "Subsequently, referring to Oracle's overall software business, Hurd cited a comparison with its competitors:" Our software business grew more than two (Oracle's total software revenue for the previous quarter increased by $ 230 million compared to the same period last year, while Workday same quarter revenue was about $ 100 million.) 3) The current Oracle cloud business growth and the company decided to professional sales Teams are directly linked to competing directly with their competitors. Ellison said: "I emphasize that we organized against our long-term competitors Mark also stressed that we did not make any changes to the sales force, which is true. Some time ago, we decided to set up an HCM sales team directly and Workday competition.They think every day is to compete in every potential field of Workday, and compete with Workday.We have a team in the sales automation market, compete with Salesforce.com, another team in the service automation and Customer experience, competing with Salesforce.com, and a team focused on ERP and SAP. So far they have focused on the ERP cloud, a brand new market where all this team is focused on Workday. Workday Current Did not get into the ERP cloud, but they also wanted to get into that area, so we watched them closely and laid out across functional areas to compete more effectively with these new generation of experts. "4) Oracle expanded its integration system Of the product line, now includes not only the ultimate performance of the Exa system, but also Low-cost, high-capacity products for important but less demanding workloads. Ellison said: "Our integrated systems business has two products, including Exadata, Exalogic and Exalytics, these integrated systems with high performance in the market with a high reputation, of course, you can enjoy its high performance or benefit from Its lower cost.In addition, we have also recently introduced low-cost integrated systems that target both the mass and price-sensitive markets.We introduced the Oracle Virtual Computing Appliance, a low-cost commercial server running Linux, with InfiniBand Integrated and connected with InfiniBand and legacy Ethernet but our system has a virtual machine based on the industry standard Xen with industry standard Linux and standardized commercial servers and a high speed network interface.This is where the Oracle Virtual Computing Appliance . This product is relatively new, very price-competitive. We think this is a product for the mass market, and can compete with Cisco's products.At the same time, we also have the Oracle database machine introduced before, this is another Low-cost, mass-market-based products In this regard, we expect large-scale sales of integrated systems, not only the well-known, high-end Exadata, but also comprehensive systems covering the very highest performance to large systems that enable the creation of large-scale clouds on commercial servers. "5 ) Oracle's overall hardware business has stabilized, including market share of high-growth businesses won from its competitors. "Before we talk about the hardware business, there are already points of view that point to the Oracle Database Machine that Larry refers to and we have now sold 2,000 Oracle Database machines. We will not talk much about this product, , This product is just an entry-level system, although this product has been a great success, but we are very interested to see the core system in this quarter's share of our M series and T series and SPARC product line to achieve a real continuous growth.If calculated on a quarterly basis, we have maintained a quarterly growth, in fact, according to the annual decline in our business is very small and our core UNIX competitors It is clear that this will be a big gain compared to the overall hardware business that really gained a lot of market share if we added that part to the quarterly performance of integrated systems. "6) The new Oracle Database 12c is The cloud has brought optimization, now has the option of memory can greatly improve performance. Ellison said: "Let me talk about another integrated system, that is, M6 memory system.As we all know, everyone is interested in the memory database.We have introduced the Oracle12c memory option, the user can Oracle12c memory In conjunction with the M6, which has 32 TB of main memory, 99.99% of the world's databases are now main memory and the performance is greatly improved, so we think this will be a very interesting combination. Companies that have a lot of clouds are interested in 12c, and those that do not sell apps but create a private cloud are also interested, so the portfolio can be sold to NetSuites around the world, enabling it to offer higher quality services at a lower cost , Or sold to large banks and telecom companies to enable them to create more efficient private clouds. We recently saw everyone interested in 12c over other database versions. I think multi-tenancy options and memory options in 2014 and There will be rapid growth in 2015. "7) Some customers use Exadata to evaluate how Oracle Database 12c Multitenant solutions reduce complexity Reduce costs and improve performance. Ellison said: "We have seen some customers in the laboratory testing and testing, of course, this is indeed Mark said they have a lot of Oracle environment, want to integrate all these into a few machines and reduce manual Managing all of these machines Exadata has the ultimate performance, yet many are questioning the size of the Exadata market - how many people need this extreme performance? This is not an issue with an Exadata machine delivering its ultimate performance to an application , Instead an Exadata machine helps reduce 50 or 100 machines and consolidates 100 separate applications and 100 separate databases into one simple Exadata and manages them in a single environment, which is multi-tenancy So, as Mark put it: Our customers spend money on managing ten, hundreds, thousands of different Oracle environments and different versions of Oracle They had to patch, upgrade, Back up, do all these things, but we can streamline these operations to make them more reliable processes that work with Exadata Tenant options keep costs down and we have many opportunities to sell these systems to our customers to help them reduce the cost of managing their Oracle environment for a better experience in terms of performance, reliability and maintainability. " 8) Oracle Database 12c will provide customers with new capabilities and new sources of value that will allow them to embrace cloud computing more fully and to find more reliable, stable memory technologies. Ellison said: "The latest version of Oracle Database 12c is designed specifically for cloud computing.Oracle 12c makes all the Oracle enterprise applications become multi-tenant applications without having to make any changes to the original application.Oracle 12c can also be achieved by It's a memory application that dramatically speeds up all Oracle applications without having to make changes to a single application code. "For questions that Oracle 12c may have on Oracle revenue, Ellison said:" Yes, I think we will reach more than However, our database business is a very large business, and the business will be driven by two factors, multi-tenant options and memory options I do not want to emphasize ... For memory options, I hope people will start getting interested in the second half of the year. "9) Oracle Database 12c offers customers a tremendous opportunity to consolidate an ever-increasing database environment. Hurd said: "I think we have also seen the benefits of 12c for our performance, which is one; Second, on your reference to the integrated system in the database, we now have the opportunity to obviously integrate the Oracle environment To a large machine. Most customers have found dozens of ways to configure an Oracle database with Oracle 8, Oracle 9, Oracle 10, Oracle 11, as well as many different operating systems and many different hardware platforms "Our opportunity is to streamline and standardize the Oracle environment," said Hart, adding that our customers spend tens of millions of dollars because of their complexity and, in most cases, hundreds of millions of dollars a year to run Oracle Database environments We can streamline and standardize on Exadata, which in our integrated systems and 12c will be to provide our customers with a private cloud and database as a service, and we will have the opportunity to save our customers the power of running Oracle environments 30% or even 40% of the total cost of this is a great opportunity for us and 12c is to integrate these environments An Extra Opportunity. "10) Oracle's large portfolio of products is rapidly evolving toward cloud and more advanced technologies and has removed a large number of commercial products acquired from SUN. Ellison said: "Simply put, our product mix is ​​changing.When we acquired the SUN, when subjected to some criticism.However, we have gone through a transition period, and now our integrated system hardware business has been increased, SUN The hardware business of commercial systems has shrunk and now we are beginning to break away from commercial systems and strive to gain greater competitive advantage in this market for integrated systems. We are now basically in the transition. The integrated systems business is now a big business, Our far-off commercial business has much higher profits, so the hardware business has shifted from low-end hardware to more high-end hardware, and we also have Oracle's storage business, and our software business has also taken place Change, most of the software business comes from our upgrade and new licenses, and update and update the business with higher profit margins.With the cloud application business continues to increase, another annuity business profits will be higher than the permit The business of certification is higher, and time will tell us that the changes we make to the overall product will be Oracle's future profit growth play a positive role in promoting. "