Oracle to Adopt Allout Approach toward Cloud Computing Business

World’s largest business software company to aggressively shift its business paradigm about cloud computing services from fad to futuristic. Oracle corporation gave very clear cues during OpenWorld Conference organized by the company in San Franscisco. Many executive level participants of the company and its partners along with the CEO of Oracle Corporation have clearly advocated the aggressive approach toward cloud computing.

It is very important to note that, a few years back, the company coined a term ‘fad’ about the cloud computing buzz, but now it is falling in love with the cloud computing solutions. The company is aggressively focusing on the artificial intelligence and super fast speed cloud based services fully optimized for the oracle software platforms.

In a direct onslaught on Amazon web services, the CTO of Oracle corporation Larry Ellison said that AWS was over 20 years behind the Oracle cloud platform in terms of many features and optimized performance.

In his official statement, Larry Ellison said, “Amazon Web Services are simply not optimized for the Oracle Database. I’ll go further than that: Amazon Web Services aren’t optimized for their own databases either, as you will see.” While talking about comparative analysis of the innovative approach and service optimization of both Oracle and AWS, he said, “Amazon services will not get better, but they will get worse”. He further said, “Oracle cloud is 24 times faster for analytic workload, 8 times faster for OLTP workload, 105 times faster for oracle database than the Amazon web service platform.”

While talking about the artificial intelligence in the cloud, Diane Bryant from the Intel Corporation, which is the partner in the Oracle’s pursuit towards artificial intelligence platforms in the cloud, said in her statement, “Cloud computing is a fundamentally more efficient way to deliver all kinds of machine-learning services. It’s now cost-feasible to store and compute massive amounts of data, which is allowing for many of the advances we’re currently seeing in artificial intelligence.” She further said, “Data is the game-changer. It is the differentiator for business. AI is all around us, not just in science fiction, and it is transforming the way businesses operate”.

It is very imperative to note that Oracle has recorded huge growth in the cloud revenue earlier this month, which is a very encouraging sign for the company to aggressively focus on this powerful domain of business in the future.

C5 Capital Eying Cloud Computing Market with a $150 Million Fund

This investment would be used in the cloud computing sector, which is growing at a very fast pace across the globe, especially in North American and European regions.

C5 The C5 Capital firm is targeting to invest in the cloud computing market with at least $150 million fund. It was announced by the company through the official statement today. The company is already positioning itself to invest in the fast growing technology based business, especially in the cloud computing market.

Earlier this month, the company has announced that it has pouched the European head of Intel Capital firm, which is one of the arms of the venture capital of a technology group based in the United States of America. The European head of Intel Capital, Mr. Marcos Battisti will join the company in the month of September 2016. He would be the head of this fund to invest in the domain of cloud computing business across the globe, especially in the European or North American companies.

It was further informed in the official statement of the company that it is the largest fund ever raised in the European region for cloud computing domain of business. This fund will improve the remote services, data storage and internet content of the targeted marketplace.

Earlier, the company has established a partnership with the Amazon Web Services AWS through a Bahrain based capital fund. That fund was mainly developed for the investment in the technology based startup companies in the African and Middle East Area. This fund was originally triggered by that partnership with the AWS to invest in the technology based businesses.

Mr. Marcos Battisti is highly experienced in different projects in the past, such as Sigfox Mobile Connectivity Company France and the Israel based Anobit Semiconductors. Later, the Anobit was acquired by Apple Inc.

This newly developed fund will be utilized in financing startups with a range of $5 to $15 million to develop the next stage of the companies.

While talking about the use of the funds, the chief capital officer of the C5 Capital, Mr. Daniel Freeman in his official statement said, “The cloud computing market remained at an early stage of its growth in spite of the reliance of many internet services on such remote infrastructure. This fund would be looking to back cloud infrastructure and platform providers as well as consultancies. It would have been a huge miss if we didn’t get involved in this market.”

It is important to note that this company is already investing in different cloud based businesses at low level.

Oracle to Acquire NetSuite to Enhance Its Cloud Portfolios

With this acquisition, the position of Oracle Corporation will further strengthen in the domain of cloud-based back end automation software applications.

Oracle  It was announced by the Oracle Corporation this weekend that it is going to acquire the NetSuite Inc, a well known company that offers cloud based software for backend process automation services. While informing about the financial terms and conditions of the deal, it was announced that the deal was sealed for $9.3 billion. The payment will be cleared in cash.

It is very important to note that Oracle Corporation is aggressively pursuing to gain a substantial share in the fastest growing cloud computing domain of business.

With this announcement, the share prices of NetSuite soared high with a substantial increase of about 18% in its current value. The shares were trading at about $108.07 at the mid of the trading day. Meanwhile, there was no significant impact of this acquisition on the share price of Oracle Corporation. They were trading at their stable position of about $40.93 per share.

In recent years, it has been found that many large IT companies have been aggressively shifting toward cloud computing services due to heavy demand and substantial potential in the market. In the pursuit of the cloud business enhancement, Oracle has been competing with its competitors like Salesforce, SAP, WorkDay Inc and others to offer the process automation and other software products. With this merger of NetSuite, Oracle will be able to compete in this domain more aggressively to achieve the business objectives.

While talking about the prices of this deal, Rodney Nelson, a market analyst of MorningStar research and analysis firm said, “It’s definitely pricey from Oracle’s perspective, but it’s understandable and it’s justifiable, especially in this environment, when we’ve seen software-as-a-service companies go as high as 10, 11, 12 times sales”. Similarly, other market experts also believe that the price of the deal is on the higher side.

In an analytical note, the Jefferies Market Research said, “This acquisition will yield immediate fruits for the Oracle to benefit from the mid size software marketplace, but the price paid seems steep.”

It is very important to note that Oracle has already acquired a couple of other companies operating in the domain of cloud business. Among such companies, Opower, Textura are a few very important to note.

Many experts are seeing it as an increase in the competition of cloud business in near future.