Oracle losing legacy software sales, growing (public?) cloud sales

Once again, the key metric of new software license sales was off—falling 19% to $1.35 billion compared to last year, and missing analysts’ expectations of $1.44 billion.

On the other hand:

“Our cloud revenue will be larger than our new software license revenue next fiscal year, when the transition will be largely complete.”

And:

“Our cloud applications goal is to be the world largest and most profitable SaaS company. We are growing our cloud business much faster than Salesforce.com, and we can beat them to the $10 billion mark, but it’s going to be close,” Ellison told analysts on the call.

Also:

Database-as-a-service, which basically runs a company’s database on a third party’s cloud, is a fast-growing category for Oracle, according to the company. In fact, Oracle co-CEO Mark Hurd said that business was up 700% year over year, hitting $100 million in quarterly revenue.

Source: Oracle’s Cloud Business Has Yet to Surpass Its Falling License Sales

Lesson learned from India: Four common traits of a profound digital transformation

Agatha over at 451 visits Indian outsources, commenting on how they’re changing to do more cloud related work:

Aside from spending a great deal of effort on building a market-driven culture, the company has instituted a fundamental shift in workforce mindset by moving away from doing what they are told and on to identifying new opportunities to add value and delight customers.

Also:

Aside from spending a great deal of effort on building a market-driven culture, the company has instituted a fundamental shift in workforce mindset by moving away from doing what they are told and on to identifying new opportunities to add value and delight customers.

And:

Wipro reported that public cloud partners serve as a key building block of its hybrid cloud migration strategy. For public cloud deployments, it has teamed up with AWS, Microsoft Azure, SoftLayer, Oracle and vCloud Air to provide managed public cloud offerings. Meanwhile, public cloud partners increasingly represent an important sales and marketing channel for HCL Technologies, with a number of deals having significant public cloud roadmaps. There are a few providers that focus on building vendor-specific expertise and credibility, such as Infosys, which is the premier consulting partner for AWS, and CMI industry advisory group. CMI at TCS claims to have more than 120 certified AWS architects and over 800 trained associates.

Source: Lesson learned from India: Four common traits of a profound digital transformation

Link: Gartner: Cloud Email Adoption Still in Early Stages

“The cloud email market is still in the early stages of adoption, Gartner said, with 13 percent of identified publicly listed companies globally using one of the two main cloud email vendors, Microsoft Office 365 or Google Apps for Work, respectively. With the majority of companies opting for smaller vendors, the cloud email opportunity is still ripe for channel partners… According to Gartner, 8.5 percent of public companies in its sample of nearly 40,000 public companies globally use Microsoft’s Office 365 service, while 4.7 percent use Google Apps for Work.”

Seems pretty crazy, but I’m sure there’s sunk costs, security and data handling issues, and, well, sometimes it probably is cheaper.

Source: Gartner: Cloud Email Adoption Still in Early Stages

I’m always wary of discounting Office: the closer you are to the corporate world, the more you appreciate its reach, but on the flip side, the further away I get from that world the more I appreciate how much of Office’s importance is based on habit rather than need.

Ben Thompson in his April 30th, 2015 newsletter.

The flywheel go-to-market model

The Flywheel Model differs from the Traditional Model in one fundamental regard. The enterprise sales team is exclusively inbound. They are explicitly denied the option of seeking business outside the customer base, and must gin up business from only existing customers. The enterprise sales team is an up-sell and cross-sell team. In fact, so is the mid-market sales team. Only the SMB marketing team is permitted to acquire new leads. In short, the Flywheel flips the traditional idea of enterprise people as hunters and others as farmers.

Also, some constraints on market match, such as:

Flywheel models work very well in sectors where the ultimate buyer has is very difficult to sell or market to, (e.g., product managers and engineers). The high customer acquisition costs of these customer types are driven by their software evaluation and product purchasing behaviors which differ from the norm. These customer segments often prefer educating themselves than relying on a salesperson. Engineers don’t buy software the way marketers do.

The flywheel go-to-market model

Feedly grows subscribers 900% from 2013 to 2015

As a heavy RSS user, I care a lot about Feedly. So, when they announced that they’d gotten 50,000 paid subscribers, I threw together some quick math:

Feedly growth from 2013 to 2015
Feedly growth from 2013 to 2015

This isn’t a perfect comparision because the terms of subscriptions are different. The first 5,000 subscribers came from a Kickstarter selling a lifetime subscription for $99 (I was lucky enough to get in on that). The next batch – 45,000, I presume – are paying $45/year.

Still, there’s some cash. Hopefully it’s eough to keep it going. I actually just use Feedly for a backend as I do most of my reading in Newsify. What I’d really like is Flipboard to work with Feedly. But, you know, this isn’t the mid-2000s when things like that would happen.

ERP is moving to SaaS all the sudden

The proportion of enterprises that have replaced or plan to replace existing ERP systems with SaaS has doubled from 12 to 24 percent in the past year, according to research published this week by industry analyst firm Forrester.

In addition, the numbers planning to use SaaS alongside on-premise ERP — for example in ‘two-tier’ ERP deployments — leapt by more than half to 41 percent. Taken together, the survey shows that 65 percent of enterprises expect to be using SaaS in some ERP role before the end of 2015 — a massive increase of two thirds on what respondents were saying a year ago.

ERP is moving to SaaS all the sudden