As Oracle’s Gen-2 cloud revenues grow, co sees rising demand in India

As Oracle’s Gen-2 cloud revenues grow, co sees rising demand in India
Photo Credit: Reuters
5 Jan, 2021

In 2018, when database software company Oracle launched Gen2 cloud infrastructure, the world was a different place. Digital transformation was on the enterprise agenda but the pace was slow and cautious. 

With the pandemic and the resultant lockdowns across countries, demand for cloud services has gained momentum, putting Oracle’s Gen-2 cloud right in the centre of the action.

“Oracle’s Gen2 Cloud Infrastructure is adding customers and growing revenue at a rate well in excess of 100% per year,” Oracle chairman and CTO, Larry Ellison said at the time of the company’s FY 2021 second quarter earnings. 

“Demand for our Gen2 Cloud Infrastructure is exceeding our plan and we are opening new data centers as fast as we can.  Oracle opened 13 additional regional data centers in 2020 to bring our total to 29 regional data centers worldwide, more than AWS,” he said. 

In India, the company has seen demand for its products from firms such as electric wire makers Polycab, brokerage firm Religare Broking, IT management company Mphasis, Omega Healthcare, cable TV provider GTPL Hathway. 

Globally, the company provides the service to video conferencing giant Zoom, fast food franchise owner McDonalds and automaker Nissan.

The company did not provide any India specific numbers in terms of new clients or percentage of its cloud growth in its second quarter of FY2021  earnings. TechCircle has reached out for details on its growth in the Indian market. 

Fusion Cloud ERP has been another winner for Oracle, with enterprise resource planning being hot sellers for companies globally, including India.

Oracle saw its Fusion Cloud ERP revenue increase by 33%. Fusion Cloud refers to Oracle’s Cloud infrastructure used for development of new applications for cloud and subscription services.

“Over the last 4-5 years, we have doubled our overall customer base and have nearly 1,000 strategic partners in our network. All this is a reflection of Oracle emerging as the cloud provider of choice for our customers,” Shailender Kumar, regional managing director, Oracle India, said in a recent statement. 

The company also saw its Netsuite Cloud ERP increase by 21%, which is another SaaS (software as a service) based ERP offering from the cloud provider.

Watch: Oracle exec Vinay Kumar on why large enterprises need on-premise cloud services  

Oracle currently has two local cloud regions based out of Hyderabad and Mumbai, along with 29 others globally. It employs some 40,000 people in India.

The Hyderabad cloud region was installed in June 2020, while the Mumbai cloud region was launched in October 2019.

With security being the top concern for CIOs and CISOs as companies embrace digital solutions, Oracle rolled out Oracle Maximum Security Zones and Oracle Cloud Guard in September 2020. 

Maximum Security Zones allows clients to enforce security in designated cloud areas for sensitive data while  Oracle Cloud Guard works by continuously monitoring configurations and activities to identify threats and redress it across all cloud regions.

“They(clients) want to keep the services available for their end-customers. These are not fringe cloud migration they are doing, but the core work which is not discretionary," vice president - cloud (India) Sriram Rajan for Oracle, told TechCircle back in June, just a couple of months after the pandemic wreaked havoc for enterprise functions.

Oracle competes with IBM, SAP, AWS, Microsoft, Teradata and Snowflake, among others. The company currently has close to 1,000 channel partners in the country as part of its partner program the Oracle PartnerNetwork (OPN2020), which it said is helping the company witness more growth in the region.