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Oracle promises IaaS growth as cloud business rises

But Oracle has to deal with reality: Amazon’s latest earnings report showed AWS’s quarterly revenue was more than $3.5 billion, up 47% year over year. It’s not a perfect comparison, given the strength of Oracle’s cloud SaaS business and Amazon’s lack of competing products in the ERP, HCM and CRM sector.

But it does highlight one of the major issues with Oracle’s offering: the company’s marquee IaaS offering is late to the game. Even its first-generation Oracle Compute Cloud has only been on the market since 2015. Compare that to AWS’ Elastic Compute Cloud (EC2), which launched in 2006.

One of the key issues with the Bare Metal Cloud offering is geographic reach. Right now, it’s only available from a single region, the U.S. southwest. Oracle has promised additional (and increasingly rapid) expansion of its physical footprint.

Meanwhile, AWS has 16 cloud regions, Azure has 34, and Google has 6. All of those providers have plans to launch several more over the course of this year. (It’s not a perfect comparison, since Oracle’s first-generation IaaS offering is available in other regions and competitors like Azure don’t strictly follow Oracle’s model of three availability domains per region.)

Broad geographic availability is important for reducing application latency for customers outside Oracle's home market the US, in addition to satisfying data residency compliance requirements for customers in other countries.

Oracle CTO Larry Ellison said that he expects increased cloud growth over the next five years as the company’s database customers continue to move away from on-premises technology deployments.

IDG News Service