During his Oracle OpenWorld 2017 keynote, Oracle CEO Mark Hurd reiterated one of his predictions for 2025 – that 80 percent of IT budgets will be spent on cloud services. As is true for several of his other predictions, it is clear that for many companies the prediction is becoming a reality right now.
Hurd foresees a substantial shift within the industry. In a recent study by IDC, spending dedicated to non-cloud IT infrastructure is currently around 57 percent. However, IDC notes that this amount has been falling year-over-year and spending devoted to cloud-based IT is up over 20 percent from 2016.
These trends in cloud migration represent an increased awareness of the cloud’s benefits for companies all over the world. Companies are growing tired of attempting to integrate different IT components and troubleshooting applications that require consistent upgrades, fine-tuning, and patching. Migrating to the cloud means companies no longer have to be concerned with the routine monitoring and maintenance that comes with a traditional IT infrastructure. Hurd states that in a cloud environment, not only are vendors like Oracle managing the performance and security features of the service, but companies can also benefit from reduced costs.
Generally speaking, companies can reduce costs 30 percent by simply moving to the cloud – reason enough for most companies to make the move (and many are). Think of that: You can strip out 30 percent of your IT costs without any reduction in performance and reliability.” – Mark Hurd, CEO, Oracle
Another advantage of adopting cloud technologies is that cloud vendors are operating in an incredibly competitive marketplace. Competition is driving each vendor to deliver an adaptive and efficient platform from the start and to constantly innovate and improve their services. In the end, notes Hurd, Oracle is dedicated to providing its customers with Oracle Cloud infrastructure, platform, and applications that are scaled and optimized, built on standards, cost less, and enable more innovation.