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Oracle announced their Q4 Fiscal 2014 Financial Results this morning and the results were less than expected.  Oracle attributes these results to the transition to cloud. Sales Transition This article (http://www.bloomberg.com/news/2014-06-20/oracle-sales-profit-miss-estimates-amid-cloud-transition.html?cmpid=yhoo) has a quote from Oracle’s CFO on this transition. “[Oracle Chief Financial Officer Safra Catz]… attributed lower revenue to the transition to cloud software, products for which the company recognizes revenue over the term of a subscription. With traditional software, Oracle recognizes revenue up front when it makes a sale.” It is fairly clear that Oracle knows that cloud subscription services is the future and this is not a question of “if cloud will be a viable financial business model?” but rather “when will cloud be a viable business model?”.  For Oracle, specifically, they clearly continue to struggle with this transition.  However, companies such as Salesforce and Amazon who absolutely embraced cloud from the inception are reaping the huge rewards of their once not-so-popular ‘faddish’ thought-leadership positions. Cloud Platform Another interesting part of this article is the publicly available facts that Oracle has started to clearly break out their financial results into several ‘cloud’ categories including infrastructure-as-a-service (IaaS), software-as-a-service (SaaS) and platform-as-a-service (PaaS). “As part of Oracle’s shift to selling more cloud software, the company broke out revenue for its cloud infrastructure-as-a-service products, which allow companies to store and run applications on the Internet. The company said it had $128 million of sales in that category. In two other cloud categories combined, software-as-a-service and platform-as-a-service, the company said sales rose 25 percent to $322 million.” Transition is hard, due respect to Oracle Without a doubt changing corporate DNA is extremely challenging.  We have previously shared our thoughts on  the difficulty of this change, as well as the financial implications, and even poked a little fun at Larry Ellison on ‘Subscriptions – Adobe and Oracle’ (http://saasisafad.com/subscriptions_adobe_oracle/), ‘Amazon Web Services (AWS) leading IaaS providers’ (http://iaasisafad.com/amazon-web-services-aws-leading-iaas-providers/) and ‘Software Subscriptions welcomes Oracle to the party’ (http://saasisafad.com/software-subscriptions-welcomes-oracle-to-the-party/). Cloud Is A Fad? As Oracle now tracks these categories of IaaS, SaaS and PaaS in their financial results we’ll monitor the outcomes and comment on the trends.  However we are very interested in your opinion.  What do you think?  Is IaaS a Fad?  Is SaaS a Fad?  Is PaaS a Fad?  Is BigData, Mobile or Cloud a Fad?  Please comment below. Share...

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It’s absolutely no surprise that Amazon Web Services (a.k.a. AWS) is the leading vendor of Infrastructure-as-a-Service (IaaS) for cloud computing.  As seen in the chart below Gartner, a well recognized market analysis company, does extensive research on particular industries and published what they call Magic Quadrant results for these industries researched.  Gartner carefully evaluates each companies “ability to execute” as well as “completeness of vision” for these companies.  Then in order to provide a nice visualization of this research they create four quadrants and position each company into one of four different classifications which are ‘niche players’, ‘visionaries’, ‘challengers’ or ‘leaders’.  As you can see from the Magic Quadrant graphic below published by Gartner in October 2012 on Infrastructure-as-a-Service (IaaS), Amazon Web Services is a clear ‘leader’ with a high ‘ability to execute’ as well as ‘completeness of vision’. So, how is it that AWS gets to enjoy such a leading position in the IaaS market place?  Well, it’s certainly no accident and it starts with innovative and visionary people, not technology. And Jeff Bezos, Amazon’s found and CEO, is one such person that has built Amazon, and AWS, into a great success through his personal passion and vision.  Of course he’s smart enough to surround himself with extremely talented people and he certainly did not achieve such success alone but his leadership for the Company is what resonates with customers, employees and investors. Below is a graphic I created, from my personal opinion only, on the evolution of Amazon and their transition from strictly an e-commerce company into an IaaS/Web Services company. These are not easy milestones to achieve but as you can see there has been evolution of their various businesses without ever losing focus of their core competencies such as e-commerce.   Now I would like to ask you to stop reading this post and take a close look at the graphic above.  Where do you think Amazon is currently on the technology-curve?  I would absolutely say they are at the “Monetize AWS” stage.  (Note:  I should mention that the graphic does not imply that AWS or Mobile is at the “Mainstream Markets” stage, yet rather the point of the graphic is the illustrate Amazon’s ability to transition their business over time since the Company was founded in 2005). In fact I’ve heard that AWS revenue is about $2 billion per year.  While that is a tremendous amount of revenue it pales in comparison to Amazon’s overall revenue of $66+ billion.  If e-commerce is in the tens-of-billions worth of revenue and AWS is only two-ish why in the world why would Amazon continue to heavily invest in...

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http://www.zdnet.com/u-s-federal-private-cloud-spending-to-hit-1-7b-in-2014-iaas-leading-the-way-7000018068/ Some interesting observations from this article summarized below: And, while private cloud spending will reach a mere $1.7 billion in fiscal year 2014, by 2017 the figure is expected to rise by more than three-fold to $7.7 billion.  While Software-as-a-Service (SaaS) leads the way in most sectors, over in the realm of government, Infrastructure-as-a-Service (Iaas) is leading the way, and set to grow to $5.4 billion in 2017. While the U.S. Justice Department needs SaaS offerings in a community cloud, the U.S. Social Security Administration relies on IaaS and Platform-as-a-Service (PaaS) in the private cloud, and the U.S. Treasury Dept. is leading the way in public cloud spending. Share...

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This news is pretty amazing.  Fujitsu claims that customers will be able to provision physical servers in as little as ten minutes.  Typically to configure hardware it would take days or weeks. Below is a schematic of the Conventional and New method for provisioning Infrastructure.  This is made possible by Fujitsu’s “Resource Pool Architecture”.  According to the news release, “Fujitsu Laboratories developed “Resource Pool Architecture,” which pools the various individual hardware resources dispersed throughout a datacenter—including CPUs, memory, and disk storage—and brings them together as part of an architecture created within a physical server.” Here is a link to the entire article:  http://www.fujitsu.com/global/news/pr/archives/month/2013/20130704-01.html Share...

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