Editor’s note: Analysts at Technology Business Research believe Oracle CEO Larry Ellison’s decision to retire from that post and the changes in other executive roles announced Thursday will lead the software giant to “rethink how it operates.” Oracle has a large presence in the Triangle after purchasing Morrisville-based Tekelec in 2013.
HAMPTON, N.H. – Creating a path to solutions across Oracle’s broad and deep portfolios will drive Oracle to rethink how it operates in the next 24 months.
Monetizing Database 12C with in-memory while extending growth in the Oracle (Nasdaq: ORCL) cloud business will dictate that Oracle continue to adjust its go-to-market and portfolio investments to tie software, cloud, and engineered systems together.
Customer paths to not only refreshing database installations but the applications and engineered systems designed to support increased performance will create a narrative of in-memory as driving business value, increasing share of wallet with install base customers and moving Oracle’s perception in the market from point product to solution.
With Oracle executives noting that only 30% of existing maintenance contracts are from its applications install base, opportunities remain to extend applications sales into the Oracle database install base to support broader growth. Double digit growth in CY3Q14 in both cloud applications overall and on-premise applications sales in North America illustrate a growing install base for Oracle applications.
Upcoming Sparc launches designed to support the 12C Database with in-memory emphasize Oracle’s dedicated focus on the database as the “point of the spear” for development and sales across the balance of CY14 and into CY15. With Oracle’s Database Cloud an prioritized focus of Chairman Larry Ellison ahead of Oracle OpenWorld, TBR sees Oracle setting the stage for competitive database sales engagements against competitors including SAP and IBM.
To improve organizational agility and execution, Oracle has kept its executive team focused on what they do best
Ongoing executive turnover within Oracle’s go-to-market organization emphasizes the challenges that remain ahead of Oracle in retraining and investing in its sales force to drive growth in established software as well as its evolving cloud portfolios.
Refining roles and responsibilities for Larry Ellison, Mark Hurd [now CEO], and Safra Catz keeps experienced hands at the helm of their respective halves of Oracle’s corporate teams – but the related promotions for Hurd and Catz increase the spotlight on how these three executives have and will collaborate going forward.
TBR believes Oracle will balance promoting from within along with increased profile for CEO Mark Hurd and Senior Vice President Rich Geraffo to set the stage for clear territory delineation between Oracle direct sales and channel partners to ensure software and cloud revenue growth into CY15.
(C) TBR
