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Mark Hurd Video: Cloud Re-Engineers IT Economics

Mark Hurd: You have a situation now where managing all of the complexity of IT, of simply maintaining the existing systems, integrating all the systems in the old-fashioned approach today eats up roughly 80 percent of the IT budget.

Therefore, only 20 percent of the budget is spent on innovation. This is a very difficult economic model. Cloud computing offers business leaders an alternative. They can now save money, enable the business to focus on their core business, and push that innovation back again into the IT industry

The cloud provider is giving new innovation, if you will, a new code drop of the software multiple times a year with new features every time there is a new release of the software. This now has pushed the innovation back to the provider and has now fundamentally changed the economics of the customer’s IT budget.

Customers win, and the business wins as a result of this.