Menu
Will Oracle’s Australian cloud crusade prove to be a misadventure?

Will Oracle’s Australian cloud crusade prove to be a misadventure?

Industry hopeful but remains wary of vendor’s chequered history

Oracle has recently launched its platform and infrastructure cloud offerings in Australia. But the question remains, can the global software giant make the transition and challenge the established cloud players?

Gartner research director, Michael Warrilow, told ARN that Oracle had strength in its cloud offerings and the company has made significant investments in staff and infrastructure.

“They are spending big money and they are poaching people from Amazon, and they have a lab up in Seattle where much of the engineering is happening," Warrilow said.

“There is a lot of potential and there is a lot of money being spent. It is a question of how successful will they be and are they too late?

“They have many years to catch up just to get into this race and billions of dollars that have to be spent. They are spending the money, how long they can afford to do that before the accountants start questioning the return [remains to be seen],” he said.

Michael Warrilow - Gartner research director
Michael Warrilow - Gartner research director

Microsoft and Google have good reason to have a multi-billion dollar investments in data centres that is underutilised, according to Warrilow, but Oracle doesn't have that, as much of its revenue still comes from on-premise.

“They have a claim in the PaaS [Platform-as-a-service] space; they may have some accounting differences in what they call PaaS as opposed to the rest of the world but database and middleware has been their bread and butter,” Warrilow said.

Coupled with this is the vendor’s chequered history in its approach to customer engagement. The company has a reputation for auditing its clients when licenses come up for renewal.

“That classic traditional Oracle sales strategy - you have to question whether that will be successful in the cloud where there is more competition and more freedom,” Warrilow added.

He said that, in many ways, Oracle needs to overcome itself before it can be successful in the cloud.

“[Oracle will] definitely have to reinvent their own go-to-market. Microsoft have done all the hard yards in that respect and it has taken many years to do that transformation. Oracle is going to have to do that to get the new opportunities," Warrilow said.

“They are not going to go out of business anytime soon because they have such an entrenched business, but as the move continues toward cloud, they need become more cloud friendly,” he said.


Follow Us

Join the newsletter!

Or

Sign up to gain exclusive access to email subscriptions, event invitations, competitions, giveaways, and much more.

Membership is free, and your security and privacy remain protected. View our privacy policy before signing up.

Error: Please check your email address.

Tags MicrosoftOracleAWSmichael warr larry ellison

Featured

Slideshows

The making of an MSSP: a blueprint for growth in NZ

The making of an MSSP: a blueprint for growth in NZ

Partners are actively building out security practices and services to match, yet remain challenged by a lack of guidance in the market. This exclusive Reseller News Roundtable - in association with Sophos - assessed the making of an MSSP, outlining the blueprint for growth and how partners can differentiate in New Zealand.

The making of an MSSP: a blueprint for growth in NZ
Reseller News Platinum Club celebrates leading partners in 2018

Reseller News Platinum Club celebrates leading partners in 2018

The leading players of the New Zealand channel came together to celebrate a year of achievement at the inaugural Reseller News Platinum Club lunch in Auckland. Following the Reseller News Innovation Awards, Platinum Club provides a platform to showcase the top performing partners and start-ups of the past 12 months, with more than ​​50 organisations in the spotlight.​​​

Reseller News Platinum Club celebrates leading partners in 2018
Meet the top performing HP partners in NZ

Meet the top performing HP partners in NZ

HP has honoured its leading partners in New Zealand during 2018, following 12 months of growth through the local channel. Unveiled during the fourth running of the ceremony in Auckland, the awards recognise and celebrate excellence, growth, consistency and engagement of standout Kiwi partners.

Meet the top performing HP partners in NZ
Show Comments