Oracle CEO Mark Hurd kicked of the second day of Oracle Modern Supply Chain Experience 2018 with a keynote in which he provided an overview of where businesses are now and where they’re headed in a cloud foundational world. The importance of modern technology for a company’s ability to grow is a major focal point in Hurd’s recent cloud discussions.
Hurd believes the cloud will play a major role in the transformation of enterprise IT. Evolving business models and IT budget constraints present new challenges for business leaders, making it difficult for them to adapt to the latest technology innovations. Hurd shares the startling statistic that more than half of the original Fortune 500 companies are gone.
Companies go away in a relatively short period of time. But the cloud offers an opportunity to innovate on someone else’s IT bill. It costs less, you do less work, and it’s more secure. In fact, the likelihood that your custom environment is more secure than our cloud is zero.”
In his presentation, Hurd recapped his predictions for 2025:
- 100% of application development and testing will be conducted in the cloud.
- 80% of production apps will be in the cloud.
- 80% of IT budgets will be spent on cloud services.
- 80% of IT budgets will be spent on business innovation, and only 20% on system maintenance.
- All enterprise data will be stored in the cloud.
- Enterprise clouds will be the most secure place for IT processing.
Hurd also discussed the macroeconomics driving business and IT, business leaders’ expectations, and why the cloud is driving IT and supply chains. Consumer IT is growing approximately 20% per year, however business-to-business IT growth is close to zero. This presents challenges to transforming the supply chain.
Additional highlights from Mark Hurd’s presentation:
- The cloud simply costs less and you do less work, and it is more secure. You can innovate on our R&D bill instead of your IT bill.
- Most IT is spent on keeping the status quo and maintenance. The average app is 20 years old.
- The old systems and processes were all built with a different way of thinking of demand. Now, you can’t take 28 days to get something from here to there. You have to line up your supply chain with your demand.
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