Oracle Strengths, Domain Expertise, and Key Differentiators
In the Cloud applications market, Oracle has grown to be a power house since it started building a new suite of Fusion Applications from the ground up more than a decade ago. Our research showed that Oracle has emerged as the No. 1 vendor with a 10% share in the Cloud ERP market in 2018. With more than 1,100 products in its Cloud applications portfolio covering end to end business processes, Oracle has an edge over best-of-breed providers like iCIMS in talent acquisition or Veeva for customer relationship management in life sciences. Oracle also has an edge over the suite providers like Salesforce and SAP because of integrated support from its Oracle Cloud Infrastructure, which delivers much improved availability services and cloud experiences than those that rely on Infrastructure As A Service(IaaS) providers like AWS, Microsoft and Google. By 2020, Oracle expects that it will have 36 Gen2 Cloud regions around the world, compared with 25 at AWS. Additionally, Oracle’s Don Johnson, who runs OCI, expects it can deliver better in-country disaster recovery than any other IaaS provider because of its emphasis on mission-critical enterprise workload as well as attributes like database security. Even though major IaaS providers are still duking it out with global expansion plans, Oracle can make its entire Cloud stack built exclusively for a single customer in any of its regions. Oracle can also drive better cost performance for storage and compute because OCI leverages the Oracle full stack like Exadata hardware, built-in capabilities like live patching from its Ksplice purchase in 2011 as well as its expertise in running Linux since 2006. The result is that the value of Oracle Cloud applications running on its full stack will multiple when customers evaluate not just their best-of-breed capabilities, but also the security risks and actual costs of running them in the cloud. AT&T, for example, recognizes the value propositions and it’s in the process of moving its Oracle applications and other workloads onto OCI. Over the past five years, Oracle has been prepping itself for this endurance race by making its Cloud applications ready for prime time and strengthening them with the full Cloud stack. Meanwhile, its rivals have veered off by making extravagant purchases with SAP paying $8 billion for Qualtrics, Salesforce doubling down with Tableau for $16 billion, and IBM doubling that again with Red Hat for $34 billion. Oracle seems to be sitting pretty with a laser focus on scaling out its Cloud applications with the full backing of OCI.
Oracle Recent Developments
In October 2019, Oracle announced the passing of its CEO Mark Hurd after a long illness. The software giant has not announced a successor as Safra Catz, the co-CEO, and Larry Ellison, co-founder and chief technology officer, assume Hurd’s responsibilities. During its recent Oracle Open World event, the company trumpeted the performance and scalability of the Oracle Cloud Infrastructure supporting its burgeoning Cloud applications that enable customers such as AT&T to standardize on its full technology stack. At the same time, its autonomous offerings for Cloud database, requiring no human intervention to maintain and handle tasks like tuning, patching and upgrading, are spawning thousands of trials that could reshape how enterprise workloads are being automated and managed. During its recent Oracle Open World event, the vendor unveiled a long list of enhancements and industry-specific products including its Redwood user interface strategy that underpins its new branding and increased emphasis on Oracle Analytics Cloud that extends real-time analytics to its cloud applications. Additionally, Oracle is moving aggressively into voice interface with its digital assistant, new verticals apps like Vocado for student financial planning and joint venture management for oil and gas companies. It is also entering the Lease Accounting space with compliance applications that support rules like ASC842, GASB87 and other IFRS reporting requirements. Also, it’s rebooting its procurement offerings by launching a free Oracle Business Network for procurement and sourcing.
Oracle Mergers and acquisitions (M&A) Activities
Over the past two years, Oracle made several acquisitions. Recent acquired businesses include: DataFox, Grapeshot, Iridize, Vocado, Talari Networks, goBalto, Aconex, Apiary, DataScience.com, Moat, Wercker and Zenedge.
Oracle Customers in ARTW Customer Database
Leveraging a rigorous data-centric research methodology, APPS RUN THE WORLD ask the simple question: Who’s buying Oracle applications and why? And we provide the answers – supported by decades of research – to our clients around the world. Our Customer database has over 100 data fields that detail company usage of Oracle and other enterprise apps by function, customer size, industry, location, implementation status, partner involvement, Line of Business Key Stakeholders and IT decision makers contact details. List of Verified Oracle ERP Cloud, Oracle Analytics Cloud, Oracle CX Cloud, Oracle Data Cloud, Oracle EPM Cloud, Oracle ERP Cloud, Oracle HCM Cloud, Oracle Hospitality Cloud Solutions, Oracle PPM Cloud, Oracle SCM Cloud, Oracle Social Cloud, Oracle Utilities Cloud, Oracle Utilities Opower Cloud, Textura Cloud Solutions, NetSuite ERP, NetSuite HCM, NetSuite OneWorld, NetSuite PSA, NetSuite SCM, NetSuite SuiteCommerce, along with scores of industry solutions for banking, life sciences, utilities, and other verticals. customers.
Ownership: - NasdaqGS : ORCL
Number of Employees: 136000
Functional Market: Absence and Leave Management, Workforce Analytics, Scheduling, Task Management, Time and Attendance, Core HR, Payroll, Benefits Administration, Pension Administration, Compliance, Onboarding, Recruiting, Candidate Relationship Management, Applicant Tracking Systems, Performance and Goal Management, Learning and Development, Succession and Leadership Planning, Compensation Management,
Key Verticals: Aerospace and Defense, Automotive, Banking and Financial Services, Communication, Construction and Real Estate, Consumer Packaged Goods, Distribution, Education, Government, Healthcare, Insurance, Leisure and Hospitality, Life Sciences, Manufacturing, Media, Non Profit, Oil and Gas, Professional Services, Retail, Transportation, Utility,
Oracle Key Cloud and HCM Applications
Oracle ERP Cloud, Oracle Analytics Cloud, Oracle CX Cloud, Oracle Data Cloud, Oracle EPM Cloud, Oracle ERP Cloud, Oracle HCM Cloud, Oracle Hospitality Cloud Solutions, Oracle PPM Cloud, Oracle SCM Cloud, Oracle Social Cloud, Oracle Utilities Cloud, Oracle Utilities Opower Cloud, Textura Cloud Solutions, NetSuite ERP, NetSuite HCM, NetSuite OneWorld, NetSuite PSA, NetSuite SCM, NetSuite SuiteCommerce, along with scores of industry solutions for banking, life sciences, utilities, and other verticals.
Oracle HCM and Cloud HCM Applications Revenues, $M:
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|Cloud HCM Applications Revenues, $M||Subscribe||Subscribe||Subscribe|
* HCM Applications Revenues = License + Support & Maintenance + SaaS ( Hardware and Prof. Services are Excluded )
** All revenue figures are estimates based on public records, Cloud and Non-Cloud business models in Apps Run The World's vendor database, and annual survey results including vendor feedback.
Oracle Revenue Breakdown by Type:
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Oracle HCM Applications Revenues By Sub-Functional Markets, $M:
Split by Sub-Functional Markets
2018 HCM Revenues, By Sub-Functional Markets, $M
Oracle HCM Applications Revenues By Verticals, $M:
Oracle Total and HCM Applications Revenues by Region:
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Oracle Direct vs Indirect sales
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Oracle Customers - Breakdown by Geo, Size, Vertical and Product
No. of Oracle Customers: 18000
No. of Oracle HCM Applications Customers: 18000
No. of Oracle Cloud HCM Customers: 16000
No. of Oracle Cloud HCM Subscribers: 35 million
The latest count of Oracle ERP Cloud customers has exceeded 6,500 as of September 2019. On the HCM side, Oracle has about 3,000 customers for its Cloud HCM applications primarily for Core HR. It also sells to thousands of customers for its talent acquisition product. Our estimate is that Oracle has about 8,000 Oracle CX Cloud customers, including 3,500 that it picked up from acquisitions of Eloqua(1,000), Responsys(500), RightNow(2,000) and a string of smaller ones like Bluekai, Vitrue and Grapeshot since 2012. There are another 2,700 customers that have purchased Oracle SCM Cloud including 1,000 live. In total, Oracle has secured more than 20,000 Cloud apps customers including many that have purchased multiple products. Additionally, NetSuite continues to thrive with a base of more than 18,000 Cloud ERP customers primarily in the midmarket. Other tucked-in acquisitions included BlueKai for marketing data management with 200 customers, LiveLook for customer service and support with 500 customers, TOA Technologies for field service automation with about 100 customers, and Datalogix for Data As A Service with 650 customers. On the on-premise side, Oracle has more than 25,000 customers using such products as E-Business Suite, JD Edwards, PeopleSoft and Siebel. That does not include its industry-specific solutions like Micros for retail and hospitality, iFlex for core banking and PhaseForward for life sciences. Altogether Oracle has nearly half a million customers worldwide.
Oracle Market Opportunities, M&A and Geo Expansions
Oracle is wasting no time to improve the look and feel of its Cloud applications by adding dozens of designers to its UX team, while incorporating a diverse chorus of cultural perspectives into the new Oracle brand for the global audience. More than a pretty look and feel, Oracle Redwood, its new UI strategy, is capable of supporting supply chain applications like recall management for healthcare supplies. The strategy underscores the new UI is enterprise ready and mission critical. Another major enhancement comes in the form of its Oracle Digital Assistant, which relies on artificial intelligence and machine learning algorithms to automate a slew of business processes from filing expense reports or looking up salary information, all of which can be done autonomously in the background without requiring downloads of a separate app. For its core Cloud ERP applications, Oracle is adding such capabilities as Student Financial Planning for higher education customers, a product that it picked up from its recent acquisition of Vocado. Additionally, Oracle is beefing up solutions for other verticals such as joint venture management for oil and gas companies as well as IoT monetizing and subscription management apps for the emerging subscription-based economy. Taking a cue from its NetSuite division, which recently started offering Lease Accounting applications, Oracle will follow by taking such compliance applications to the broader market as it helps companies address rules like ASC842, GASB87 and other IFRS reporting requirements. Lastly, Oracle is expanding its applications strategy to cover more freemium services like eprocurement. During its OpenWorld event, SCM Cloud chief Rick Jewell unveiled Oracle Business Network for B2B procurement users and trading partners for free in bid to dethrone fee-based SAP Ariba Network.
Oracle Risks and Challenges
The passing of Mark Hurd marks a delicate moment for Oracle as the vendor has been making substantial progress in its transition to an 100% cloud provider by not making any further investment in its onpremise products. Thousands of its customers are either live or in the process of going live with their Cloud ERP offerings. The Oracle Cloud Infrastructure is critical in ensuring the successes of its Cloud applications. If Oracle stays the course by naming an insider to become its next co-CEO alongside CEO Safra Catz and co-founder Larry Ellison, it suggests that a great deal of continuity will prevail. If an outside is brought in, it could mean a shift in the direction of the board to either fast-track its own transformation or come up with a whole new approach – usually through mergers, acquisitions, divestitures, or a combination of three. Whatever the case, the history of the tech industry is a reminder that those that fail to transform quickly are often being abandoned by customers first as they invariably favor the leaders over the laggards.
Oracle Ecosystem, Partners, Resellers and SI
Much of its ecosystem expansion lies in developers and startups that Oracle plans to sign up to help sell the Oracle Cloud Infrastructure. After building out its marketplace on OCI, the vendor has attracted many ISVs that are listing their applications that are immediately accessible to customers under universal credit model pricing – meaning that they can run these products on a pay as you go basis. In many cases, these customers can use universal cloud credit from Oracle to defray the costs of running these applications. ShieldIO, for example, is one of these fast-growing startups that can take Oracle Autonomous Database to the next level with Homomorphic Encryption, using NetBeans and Java, all running on OCI. Another way for Oracle to scale out its ecosystem is through Oracle Cloud free tier that developers can do development and testing work with autonomous database, compute, storage, load balancing and monitoring, all on OCI under free tier service plan for an unlimited time. Across its ecosystem, the number of Oracle partners has been rising steadily – now nearing 30,000 mark, compared with 25,000 a few years earlier. Much of the increase was attributed to increased use of Value Added Distributors like Avnet and Arrow that carry both hardware and software products. These VADs can support more resellers than what Oracle or Sun was able to fulfill their needs in the past. Since 2012 Oracle has successfully upgraded its partners through more rigorous certifications programs in 60 specialization areas for its hardware and software products. Hundreds of these specialized partners have been added covering tens of thousands of new Oracle Partner Network product specialists. Majority of Oracle's Cloud Solution Partners have been coming from firms like Accenture and Indian systems integrators. These partners also include Managed Service Providers that offer Cloud hosting support to ISVs. Overall speaking, channel contributions to Oracle's revenues have improved considerably as the vendor aims to drive more indirect sales in markets where it has limited presence.
Oracle Cloud Platform (PaaS) and Infrastructure (IaaS) Details
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Data used in research reports are derived from publicly available documents, continuous surveys of applications vendors, customers, resellers, Independent Software Vendors, systems integrators and other verifiable sources.
Vendor shares and market forecast results are based on a combination of existing databases as well as demand side and supply side research conducted throughout the year with validation from vendors, customers, channel partners and documentations such as earnings releases and 10Q and 10K filings, vertical industry studies, regional and country-level statistics from public and private institutions(i.e. colleges, universities, government agencies and trade associations).
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