Oracle Bets On India To Grow Cloud Business

by Sohini Bagchi    May 15, 2017

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Technology major Oracle has chosen India as one of its key markets to take on rivals Amazon, Microsoft and Google and hence, it has taken the cloud route seriously. Of course reasons like Safra Catz’ strong faith on Digital India initiatives of PM Narendra Modi that made her revisit India in less than a year, could not be ignored.  This has made the company even more bullish to focus on the country’s enterprises and government sectors.

Staying afloat in the Cloud

At its flagship event Oracle OpenWorld in New Delhi, held for the first time in the country, the company announced a slew of cloud-based initiatives for the Indian market. Oracle has announced it will expand its cloud services in India over the next one year with the opening of a new Oracle data center in India. The $37 billion company [2016] has also announced the availability of Oracle ERP Cloud in India to help local and multinational firms operating in India prepare for the country’s transformational tax reforms - GST.

Read more: Oracle OpenWorld Will Open The World To India: MD

“The justification for the expansion is the explosion of growth in demand within Indian businesses and government,” James Stanbridge, VP for IaaS Product Management EMEA and APAC told CXOToday in an exclusive interaction.

“We are in fact hoping to get a bigger slice of government spending in India on cloud,” Stanbridge added, stating that Gartner believes that the Indian government would spend at least US$ 7 billion on IT products in 2017, which means a lot more opportunity for us and also our partners and customers.

Oracle CEO Safra Catz also called India as one of their fastest growing markets and that’s evident as the California-based IT giant that already accounts for 40,000 of the company’s global employee strength of 130,000 in the country.

“Governments at the national and state levels are rapidly moving into the future. Digital India is the only way to empower citizens and make governments accountable - a reason why we are investing so much here,” she said.

The worldwide public cloud services market would grow 17.2 percent to total $208.6 billion, with the highest growth come from infrastructure cloud services. India is mirroring this trend. A recent Gartner report indicated that Indian businesses and government are adopting cloud in greater numbers, with the public cloud computing market in the country is expected to touch a total of $1.8 billion in 2017. Of that the Infrastructure-as-a-Service (IaaS) segment is expected to see the highest growth (49.2%). It’s little wonder then that Oracle is gunning for aggressive growth in the IaaS segment with its ‘next generation’ cloud platform. 

“IaaS continues to be the strongest-growing segment as it has become more mainstream and enterprises move away from data center build-outs and move their infrastructure needs to the public cloud. It allows customers to go to market faster. Being able to access a secure and scalable infrastructure will help customers to run any workload in the cloud for instant added value and productivity for their business,” said Stanbridge.

How Oracle Cloud differentiates?

India is no wonder the latest battleground for big cloud computing providers today. So, how does Oracle differentiates its services from rivals Amazon, Microsoft and Google, among others. “Oracle is now the world’s fastest growing scaled cloud company and the only company that can offer a complete portfolio across all three layers of the cloud: SaaS, PaaS and IaaS is betting big on the cloud, specifically in IaaS. What differentiates Oracle’s IaaS cloud from others is its enterprise orientation and cost effectiveness.”

He further explained that AWS and Azure are incomplete Clouds in the sense that customers need to stitch things together at every layer of the stack, and that becomes a challenge. While AWS’ main focus is compute, and storage, which for storing files in the cloud makes sense. But when customers want to run applications, those capabilities come from third parties. And needless to say, integration becomes a challenge.

This was when Stanbridge was excited to be a part of the Oracle team. “Oracle is the only vendor that will deliver cloud as per your terms. It gives you the choice and the confidence to follow your own journey. We’re committed to your success as we put the customers first,” he asserted. 

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At a select media briefing session during the event, Catz also took a dig at cloud rivals, especially AWS, stating, “Do they (AWS) provide software as a service? Do they provide Oracle database as a service? They provide raw compute as a service, yes. And this is where we compete, and at the same price,” she commented.

In other words, while its rivals only have cloud infrastructure, Oracle has everything, clarified the executives, in their own words.

Read more: Digital India Driving Growth For Oracle: CEO Safra Catz

“Very recently, we announced the broadest array of IaaS offerings in the industry. Our newly announced portfolio of IaaS and PaaS solutions include market leading offerings, such as: Cloud servers that are 11 times faster and 20 % cheaper (IaaS), perform 105 times faster for analytics and 35 times faster for online transaction processing, to mention a few,” Stanbridge informed. 

With Oracle being able to offer the full cloud stack of SaaS, PaaS and IaaS they can definitely make an edge in the market. DD Mishra, Research Director at Gartner commented: “As the demand for agility and flexibility grows, organizations will shift toward more industrialized, less-tailored options. Organizations that adopt hybrid infrastructure will optimize.”

In this regard, Oracle has full faith in the country’s partners, customers and other stakeholders, as Thomas Kurian, President, Product Development at Oracle mentioned, “Our customers and partners in India have trusted their businesses and mission-critical workloads to the Oracle Cloud for years. Our slew of offerings further support customer choice and strengthen our commitment to the country’s market,” he said.