Tuesday, October 17, 2017

After Germany, India lands Oracle data centre

Indian data centre follows from others announced for Germany, the UK, Turkey and US as the company seeks to increase its multi-billion Dollar cloud revenues.

First Dell, now Oracle. AWS’ cloud rival Oracle has stepped up its stance against the competition by announcing the setup of a new data centre in India.

The announcement comes as the company’s CEO Safra Catz carries out a three-day visit to India.

The company said in statement: “Over the coming months, Oracle will be reviewing proposals from government and business partners to provide customers with the capability to build and move workloads to an India-based cloud.”

Capital expenditure for the project has not been disclosed at this stage.

The Oracle Enterprise Resource Planning (ERP) Cloud is to be used in digital transformation-related projects and prepare the country for what Oracle calls “transformational tax reforms”.

Thomas Kurian, president of product development, Oracle, said: “Our customers and partners in India have trusted their businesses and mission-critical workloads to the Oracle Cloud for years.

“With this expansion we will be able to further support customer choice adding to capabilities already available through deployments of Oracle Cloud at Customer, as well as other Oracle Cloud data centre regions in Asia Pacific.”

The new data centre in India follows on from another announcement earlier in the month when Oracle unveiled plans to open three data centres in Germany.

The facilities will be used to host Oracle’s infrastructure-as-a-service (IaaS), software-as-a-service (SaaS), platform-as-a-service (PaaS) offerings, bare metal compute and Oracle Database Cloud Services.

Kurian said: “The expansion of the Oracle Cloud EU Region in Germany will deliver the best cloud services, not only our leading Software as a Service (SaaS) offerings but also our new PaaS and IaaS offerings.”

Earlier in the year, Oracle announced plans to open new data centres in London (UK), Turkey and Reston (VA, US).

In its latest financial report – Q3 2017 – released in March 2017, Oracle reported a 73% revenue growth around its SaaS and PaaS business on a GAAP basis, and an 85% revenue jump on a non-GAAP basis.

Total revenues were $9.2bn, with cloud revenues topping a total of $1.2bn. Total Cloud and On-Premise Software Revenues were $7.4bn.

Catz said: “The hyper-growth we continue to experience in the cloud has rapidly driven both our SaaS and PaaS businesses to scale.

“On an annualised non-GAAP basis, our total cloud business has reached the $5bn mark, and our SaaS and PaaS businesses grew at the astonishing rate of 85% in Q3. That growth and the resulting scale enabled our SaaS and PaaS businesses to increase non-GAAP gross margins to 65%.

“Our new, large, fast growing, high-margin cloud businesses are driving Oracle’s total revenue and earnings up and improving nearly every important non-GAAP business metric you care to inspect; total revenue is up, margins are up, operating income is up, net income is up, EPS is up.”