Download - Keynote Mark Hurd - oowBR 2016
Digital Transformation in the Cloud
Mark Hurd Chief Executive Officer, Oracle
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Earnings Continue To Grow Through Cost CuttingRevenue Growth Is Stalled Across The Economy
S&P 500 Sales per Share <1% CAGR
S&P 500 Earnings per Share ~5% CAGR
Customer Satisfaction and Stock Price Correlation
$ /
Shar
e
Source: Dow Jones Inc.
2008 2009 2010 2011 2012 2013 2014 2015
Estimated 5.1% Spending Decline In 2015 AloneWorldwide IT Spending Decelerated Over Last Five Years
2011 2012 2013 2014 20153.3
3.5
3.8
-6%
-4%
-2%
0%
2%
4%
6%5.0%
1.3% 1.5%1.0%
-5.1%
5-Year Total IT Spend Trends
Rev (UST) Y/Y Growth
$US
Trill
ionTotal IT = SW, HW,
Telecom, Services, Devices
Source: Independent Analyst Estimates
Global Growth
* Public cloud only, cloud above includes SaaS/PaaS/IaaS. Minor calculation differences can be due to rounding.
4
Global Y/Y Growth, All Markets, 2016
Cloud Software WW
On Premise Software WW
Total Software Market WW
25.0%
3.1%
6.2%
Cloud Opportunity for LAD
1.3% LAD Total IT SpendingMarket Growth Slow
LAD Public Cloud Adoption
Source: Gartner IT Spend for Enterprise Forecast, 2016Q1
Source: IMF, World Economic Outlook Database, April 2016. CAGR 2015-2020
of LAD Enterprises Deployed a Cloud Service by end of 2015
Over 70% of LAD Enterprises Believe Cloud Services Make Organization More Agile. This is more than any other region
CAGR (2015-2019)
rank Country $ trillion 5 yr CAGR1 United States 17.9 4.0%2 China 11.0 8.0%3 Japan 4.1 3.1%4 Germany 3.4 3.4%5 UK 2.8 2.7%6 France 2.4 3.0%7 India 2.1 9.7%8 Italy 1.8 2.5%9 Brazil 1.8 -0.3%10 Canada 1.6 2.3%
GDP Rank
LAD Public Cloud Market
Source: Gartner Geographic Differences Among Buyers, 2016. Numbers rounded from chart.
SaaS: 24.3%PaaS: 22.5%IaaS: 29.1%
Source: IDC Public Cloud Forecast, May 2016.
Top10
23.7%CAGR (2015-2019)
Stagnant Overall Growth Vibrant Cloud Growthbut
94%
VISION 2025
Prediction 1: By 2025 80% of Production Apps Will Be in the Cloud
• Public Cloud SaaS is 24% of the Applications market today.• 85% of all new applications today are
architected for SaaS.
2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 $-
$100
$200
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$400
$500
$600
SaaSPaaS & IaaS
Total Public & Private Cloud Markets (US$ billions)
Full Suite Requires 100’s of Applications:• Customer Experience Suite• Human Capital Management Suite• Enterprise Resource Planning Suite• Enterprise Performance Management Suite• Supply Chain Management Suite• Data Suite
Shared, extensible schemas across suites significantly reduce the cost and complexity of integration.
Enterprise SaaS Suites
80%
SaaS Point Solutions
20%
SaaS Market In 2025
Prediction 2:By 2025 Two Suite Providers Will Have 80% of the Saas Apps Market
• One of the least managed and governed areas in IT • Dev/Test suites offering rich standards-based
frameworks and languages will dominate• Dev/Test suites include:– Integrated development environment– Support popular languages– Mobile dev tools– SOA dev tools– Database dev tools– Integration dev tools– And much more ….
• 30% to 40% of IT spending is Dev/Test, making it an attractive Cloud workload for cost savings.
20%
70%
100%
Today
In 2020
In 2025
Prediction 3:100% Of New Dev/Test Will Be Cloud In 2025
• More data is already stored in clouds than in traditional storage systems.• 10’s of billions of IOT devices will generate
massive amounts of new enterprise data using modern cloud-based applications.• Public cloud storage capacity will be sourced
by service providers directly from component manufacturers, not existing storage vendors.
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5,000 Public CloudPrivate CloudTraditional IT
PBytes of Storage Installed
Prediction 4:By 2025 Virtually All Enterprise Data Will Be Stored In Clouds
Prediction 5:By 2025 Enterprise Clouds Will Be The Most Secure IT Environments. Oracle Is There Today.
OF ORGANIZATIONS TAKE 3 MONTHS+ TO PATCH
Source: Verizon Data Breach Investigations Report, 2015; IOUG Data Security Survey, 2014
74%
OF 2014 EXPLOITS HAD PATCH AVAILABLE FOR MORE THAN ONE
YEAR
99.9%
• Oracle uses its full security IP to run its Cloud• Full encryption by default• Implement latest patches rapidly across entire infrastructure• More secure than anyone
Why Cloud Computing Oracle Will Lead the Transition• Lowest cost• Least complex• Most reliable• Best security• Rapid innovation• Simple
• We will lead decade long transition to the cloud• Best of Breed SaaS Suite
built on Standards• Platform designed
for extensibility• We are in a class alone• Only IT company capable
of coexisting on-prem or in cloud• EXCITING NEW
ANNOUNCEMENT FOR BRAZIL
Complete: One Cloud for Your Entire Business
Social
User Experience & Mobile
Content & Collaboration
X✓
Value Chain
EPMMarketplaceDAASIndustrySolutions
HCMCX ERP
ANNOUNCING – NOW AVAILABLE IN PORTUGUESE