As Oracle (NYSE:ORCL) prepares to launch OpenWorld, the company’s ability to control the cloud computing has come under scrutiny. The tech world is anticipating Oracle (NYSE:ORCL)’s efforts to push the cloud idea forward yet again. A diverse range of feedback was generated when Oracle (NYSE:ORCL) stepped into cloud computing technology.
The tech world was taken by surprise with the news of company’s co-founder; Larry Ellison’s change of office from CEO to CTO. However, this transition is not expected to bring any massive change as Ellison has enough shares in the company to exercise his power over engineers to report to him. In addition, some observers see this transition a positive step towards moving the cloud idea forward, as Ellison has been the one to denounce it in the past.
As Safra Catz and Mark Hurd take the CEO office, It is expected that Oracle (NYSE:ORCL) will be taken seriously on its cloud idea.
Oracle (NYSE:ORCL) wants to retain customers
In an interview with the New York Times, Hurd revealed that Ellison will be speaking at the Open World about a new platform-as-a-service (Paas). This new technology is expected to help Oracle (NYSE:ORCL) mark its entry into the world of cloud computing. However, it is yet to be seen how Ellison will deliver this year. His last year move of bailing out of speaking at the Open World to watch America’s Cup is still fresh in minds.
The company hasn’t publicized much about Paas. Hurd revealed that customers will use Java and database to build cloud applications in the latest version. Holger Mueller, analyst and vice president of Constellation Research, stated that company is treading on safer grounds rather than being aggressive.
Mueller further stated that the Paas push is more focused on keeping existent clientele on board rather than attracting new customers. The primary aim is to make a universal application that has ease of use as well as complete company management capability. It is yet to be seen how this application will run along with the cloud and testing process is underway to determine this.
George Gilbert, a TechAlphaPartners co-founder and Giagom analyst said that Oracle (NYSE:ORCL) has made impressive progress in technology world, compared to last few years. In light of recent performance, the company could run an infrastructure as big as Facebook. However, the use of Exadata machines (running Oracle’s Database 12c) for this purpose will be very expensive.
Oracle (NYSE:ORCL) needs to expand its business
The biggest setback for Oracle (NYSE:ORCL) to bring new clients on board is money matters. Compared to its competitors, the company’s database is considerably expensive and hence, makes it challenging to retain clients.
Hence, Ellison’s keynote at the OpenWorld is both crucial and decisive. In addition, Oracle (NYSE:ORCL) is not an obvious database provider for fresh start-ups due to lack of experience with cloud applications. Stephen O’Grady, an enterprise software observer noted that company’s software revenues are declining.
To keep the company up and running, Oracle (NYSE:ORCL) must bring in new customers and ascertain its success in cloud computing.