Kara Swisher, host of Recode Decode, was live at Oracle’s headquarters for Media Day in May 2017. Following a live interview with Oracle CEO Mark Hurd, Swisher took questions from the audience. Oracle’s transition to the cloud was the major focus of the interview, as it is the fastest-growing segment of all enterprise spending.
Below is a segment of Swisher’s interview with Hurd:
Swisher: So, this is taking the existing customer and bringing them to the cloud essentially?
Hurd: Yeah. I think that’s a good description of it.
Swisher: Is this taking too long? I mean, cloud has been something that’s been happening for a while. Talk a little bit about your process for it, because you, and not just you, but Microsoft, Google, and others have led … Amazon, I think they have about a third of the cloud business, both commercial and otherwise. Have you guys taken too long to get to this?
Hurd: Well, let’s talk about the industry overall, Kara. I think it’d be probably interesting to get some context. Our industry is a couple of trillion dollars of spend. Half of it’s consumer. Half of it is everybody who’s not a consumer, companies. Of that trillion dollars of spend, it’s hard to even get to 50 billion of it yet is in the cloud, so as a percent of total enterprise spend, still relatively small. If somebody asked me a baseball analogy, I would say we’re in the first inning of all this.
Swisher: All right. If you insist on a baseball analogy, but go ahead.
Hurd: I don’t insist, but it’s just one analogy. Now, that said, the cloud revenue, albeit small compared to the enterprise revenue, is growing roughly 50 percent per year, so it is beginning to compound, and the traditional on-premise world is in decline. In that context, now you look at our numbers, we’re doing awful well. We’re gaining a lot of share. We’re gaining a lot of share relative to those cloud vendors, where the growth rates we put up over the past couple of years.
The full transcript of the interview is available on Recode.net.