As a twenty year veteran of the Oracle ecosystem, I’m excited to attend this year’s Oracle Open World 2017. My goal is to understand from partners, customers and analysts what progress Oracle is making in transitioning its business to the cloud. Specifically, are customers migrating their database and middleware workloads to Oracle via subscription? To discuss this and more please email me at email@example.com to meet up at Oracle Open World or use the hash tag #OOSWO via twitter.
In last year’s keynote address, Larry Ellison suggested it may take up to ten years to transition its core business (databases) to the cloud. In that scenario, Oracle seeks to place its engineered systems—i.e., Exadata machines—into customer data centers and leverage a subscription model as opposed to traditional license and support fees. Incremental improvements will continue to make seamless connectivity to Oracle’s cloud a reality. This has the potential to be lucrative for Oracle in the process as subscriptions, when fully burdened with operational costs, can be a multiplier of existing annual software support revenues. This shift will also enable customers to get out of the data center business.
Most of Oracle’s customers are now wondering how to respond to Oracle’s pursuit of cloud leadership. Oracle has already said its cutting edge features will only be available via subscription, thereby reducing the shelf life for traditionally licensed and deployed databases. Rip and replace alternatives may be expensive or impossible for some organizations, so the importance of a properly-vetted, long-term database strategy is as vital now more than ever.