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Mark Hurd: Cloud Pulls CFOs Into Business Model Revolution

Oracle CEO Mark Hurd said Tuesday that the benefits of cloud computing go well beyond cost savings, allowing companies to pay for innovation they can ill afford to ignore given slow-to-no global economic growth. “This is becoming a CFO-CEO discussion as much as an IT discussion,” he said during the opening keynote of Oracle CloudWorld 2017 here.

As Hurd explained, 80% of most IT budgets is consumed by routine maintenance of systems that companies run out of their own data centers. Money to address new security and compliance requirements is being pilfered from the remaining 20% that was intended to go toward improving customer service or developing more-innovative products and services. “More stress tests and compliance tests for regulated companies are putting significant pressure on innovation budgets,” he said.

Moving all those systems to the cloud would cut those nonproductive costs by 30% right off the bat, Hurd said, leaving much more room for innovation. CEOs and CFOs would jump at the cloud opportunity for that reason alone, but cloud applications also add new features more rapidly as part of the subscription “on the supplier’s dollar, not yours,” he said.

Read more at OracleVoice on Forbes.