Oracle Pays for Cloud Deployment

The calm waters of Lake Colorado, steps from her offices, intertwine with the beaches. A few Virginia oak trees extend their branches. But you have to be careful of sleeping water. Headquartered in its new headquarters in Austin, Oracle is preparing for the future of its software in the age of the cloud. The company, which is historically based in California, moved to Texas last year, to Lady Bird Beaches, one of the reservoir lakes in downtown. Under the large, opaque windows of the building, sales teams are already working.

The purchase of this huge campus reveals the ambition of the group, which is already valued at $200 billion in the stock market and employs 132,000 people worldwide. Founded by Larry Ellison, the leader in management software has tackled the cloud market by investing $12 billion in two years to catch up. The strategy is starting to bear fruit. Safra Katz, the company’s CEO since 2019, explains that Oracle’s two cloud businesses now account for 25% of its turnover at an annual rate of $10 billion. The former CFO raised the company’s margins and set a clear path. “At the end of the year, we should go from 37 to 44 data centers around the world,” explains Regis Lewis, one of the pillars of this strategy in Europe and Asia Pacific. The Vice President wants to make Oracle one of the major players on the continent. After Marseille, a second data center will open on June 20 in Ile-de-France.

The name Oracle has long been associated with its management software and databases. Large companies turn to Oracle to provide the system for their financial, accounting, and human resource data. An area where competition has increased since the advent of Salesforce or Workday and the advent of German SAP applications. Enough to force Oracle to double its acquisitions as Cerner, the director of medical data, in December, for $28.3 billion. Its largest operation since the acquisition of PeopleSoft in 2004.

Diversify your income

During the latest results, in March, Larry Ellison was happy to bring in new clients, including banks such as Société Générale and soon BNP Paribas. In France, Oracle is proud to have consolidated Crédit Agricole’s financial data on the bank’s servers. An approach advanced by the group, which claims to be able to run its software on-premises as well as on a customer’s servers — in this case, Sun Micro-systems, which was acquired by Oracle in 2010. “Our customers’ data will always remain in the data center of their choice,” he asserts. Christophe Negrier, who was appointed in January as director of Oracle France.

But, in order to grow even more, the giant also wants to put digital gold in the vaults that it spreads everywhere. “Oracle would like to move some of its customers to its own infrastructure,” notes Gerald Carsenti, a former director of Oracle France, who left the company before moving to SAP. A strategy that allows her to be more flexible and diversify part of her income. “Oracle left later than others in this business, Gartner analyst Chris Pang asserts. In terms of market share, its cloud business in 2020 remained lagging (1.5%) as Amazon’s AWS (41%) services, Microsoft Azure (20%) or Alibaba (10%)”.

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