Cloud Computing Growth Shoves Off Oracle Profits Down 12%

Oracle India’s profits saw a decline of 12 per cent in 2013-14 to Rs 297 crore due to heavy discounts on its products,

Oracle’s rival SAP, which has been quite aggressive with its cloud push in the country on the other hand, said its cloud revenue in India is growing over 50 per cent y-o-y , while it posted a growth of 15 per cent in profit in the last fiscal. Microsoft, similarly , doubled its revenue to Rs 2,261 crore in the same ..
Oracle’s revenue grew 10 per cent in 2013-14. Cloud computing is seeing rapid adoption in India as customers choose to pay on a monthly basis instead of a lump sum amount. As per a recent Gartner report, the public cloud market in the country will treble to $1.9 billion by 2018. It has grown to over $638 million in 2014 from $470 million in 2013. Gartner expects India to be the fastest growing market for cloud adoption globally .

On the other hand, the overall enterprise applications market witnessed a growth in the range of 1011 per cent during first half of 2014, as per market research firm IDC. “Cloud is really opening up huge base for us in other verticals and industries and non-SAP customers,” said Rajamani Srinivasan, head of platform and technology business at SAP India.”In the last two years, our cloud business has grown over 100 per cent.””The shift towards cloud is impacting enterprise applications market in more than one way,” said Vivek Gautam, research manager at IDC.”Some of the cloud CRM vendors had a better period due to growing adoption of such solutions. The major on-premise ERP vendors too have started re-aligning their cloud strategy and targeting their installed base to move to cloud.”
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