We had the opportunity to attend Oracle OpenWorld, Oracle’s yearly mega user conference, held in San Francisco from October 1st till 5th 2017, at Moscone Center. Moscone is under construction, so it was tough to gauge attendance, but it seemed to be a tad down year over year. Massive press, analyst and influencer presence, as usual.
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Plenty of more video to watch if you prefer to consume content in that form:
Prefer to watch - here is the run down in video format:
Plenty of more video to watch if you prefer to consume content in that form:
Want to read on? Here you go:
AI Vision in keynote– As usual most product was announced in Thomas Kurian’s keynote. But what caught most of my attention was how well Kurian articulated the fundamental transformation that AI is bringing to enterprise software. Enabling Machine Learning on the IaaS layer, adding a Machine Learning service to PaaS and using Machine Learning in SaaS and DaaS was well articulated and understood – more than in other executive keynotes in the last years. And the keynote was nicely held together by an overarching demo, well done.
Oracle SaaS is ready– The key takeaway of Kurian’s (for SaaS) and Miranda’s demo was that they expect all Oracle customers to now look at the current versions of SaaS cloud and to consider upgrading. Functional parity if not superiority has been achieved. Manufacturing (finally) is there and good enough to make the statement. Now future will tell how well Oracle can get customers to upgrade out of its heterogenous ecosystem. Definitively an area to watch.
Can Oracle attract the load– Oracle is late to the IaaS game, but has used the opportunity to redefine some IaaS best practices, e.g. having three data centers at a specific location. It has built a nested hypervisor to be able to attract heterogenous load. But Oracle still needs to show that it can attract the enterprise load – both organic – from existing customers – and external – from net new customers. The reason AWS gets so much attention in the keynotes is not only because AWS is the IaaS market leader, but also because Oracle must show a clear value proposition over AWS, to capture that load that is moving from on premises. When congressional representatives can ask ‘why don’t you put this on AWS?’ – fellow CxOs will as the CIO / CTO the same question. Verdict is still out.
Can Oracle become gentle? The SaaS Business is different to the perpetual license business. Enterprises and vendors need to work together directly and on a day to day basis. That means a certain degree of affinity does not hurt, but helps the relationship. And while Oracle is certainly respected, it is seldom liked by CxOs. Oracle cannot rely on technological superior products only to win over customers. It has to become more customer oriented, more gentle. The good news for customers and prospects is – that it is not hard. It usually means to give up margin. And Oracle has plenty of that.
Beyond RDBMs Oracle has made progress on all layers of the stack. New Sparc / Exadata servers have been announced already before OpenWorld. IaaS gets cheaper storage, cheaper / better networking and more. Dyn seems to have been inherited. PaaS gets a Blockchain, Data Science Service and a serverless product. And Oracle can even partner with Microsoft, that re-iterated its commitment to Java. On the SaaS side, we will have to see that Oracle has reached functional parity or even a lead, that is easier said at OpenWorld than delivered with real customers. So, watch customer upgrades and adoption to the Oracle SaaS products.
On the concern side, Oracle needs to find a better way with customers and improve its image and day to day standing. Betting solely on the better product is risky. And with the overall bet of Oracle on the large, integrated, chip to click stack (from the Silicon to the user click in SaaS) – enterprises will even more think twice before they do business with a vendor of Oracle’s wreputation. Doing right and better with customers is always a good true North – but it seems it is not (yet) a priority for Oracle executives, as none of that was mentioned in the critical keynotes. More needs to be happen than just statements, programs and initiatives. And I know that Oracle executives know this – they just think they can get away with it by having the better product. That gamble will only work out if the product is so clearly superior, that enterprises have no alternative than use Oracle. To be fair, the Oracle integrated stack has that potential. There was a time when customers could only get a mainframe from IBM – like the vendor or not. But that’s not a long-term strategy, unless your product stays ahead of the pack – by miles. Fascinating to watch.
Overall, a good OpenWorld for Oracle customers. All product categories are being invested in and growing. Synergies in the layers of the Oracle stack emerge, e.g. in SaaS. Across the layers in e.g.Iaas and PaaS. And Oracle is plugging remaining gaps in HCM (for Taleo) and CX (for Siebel) on a single platform. At the same time Oracle is offering new capabilities, like multi environment deployment, serverless and more that make Oracle PaaS a serious contender for next gen applications. The AT&T deal, with Oracle’s Cloud at Customer deployment, may be a lighthouse opportunity after which more Oracle customers will continue their future with the vendor. So, it’s all about execution in Redwood Shores, once again. Stay tuned.
Want to learn more? Checkout the Storify collection below (if it doesn’t show up – check here) - all the major keynotes are covered:
More on Oracle:
Future of Work / HCM / SaaS research:
Also worth a look for the full picture
And if you want to read more of my findings on Oracle technology - I suggest:
Find more coverage on the Constellation Research website here and checkout my magazine on Flipboard and my YouTube channel here.
Top 3 Positives
The Autonomous Database and Oracle Management and Security Cloud– This was the key topic of CTO Ellison’s keynotes- database on Monday, Cybersecurity on Tuesday. And the timing could not have been better, on a day Verizon has to share that all Yahoo user accounts were compromised, the ex-Equifax CEO gets grilled in Congress – there was certainly an open ear in audience and media for cyber security. Ellison drove home the point that Machine Learning, he called it as revolutionary as the Internet, will change security and software management. Oracle will start shipping the autonomous database for data warehouse loads in early 2018, transactional will come later. |
| Oracle 18c |
AI Vision in keynote– As usual most product was announced in Thomas Kurian’s keynote. But what caught most of my attention was how well Kurian articulated the fundamental transformation that AI is bringing to enterprise software. Enabling Machine Learning on the IaaS layer, adding a Machine Learning service to PaaS and using Machine Learning in SaaS and DaaS was well articulated and understood – more than in other executive keynotes in the last years. And the keynote was nicely held together by an overarching demo, well done.
 |
| Ellison on Machine Learning |
Oracle SaaS is ready– The key takeaway of Kurian’s (for SaaS) and Miranda’s demo was that they expect all Oracle customers to now look at the current versions of SaaS cloud and to consider upgrading. Functional parity if not superiority has been achieved. Manufacturing (finally) is there and good enough to make the statement. Now future will tell how well Oracle can get customers to upgrade out of its heterogenous ecosystem. Definitively an area to watch.
 |
| Miranda and the Oracle SaaS Suite |
Top 3 Concerns
Mega ERP vendor 10 years off-cycle– We are witnessing a unique situation for the ERP buyer. While in the past the major vendors would miss a technology change by a few years at max, we now have market where Oracle and SAP are 10 years apart. Oracle announced Fusion in 2004, SAP announced S4/HANA in 2014. If this means that buyers may change to the relative newer suite in the era of cloud and machine learning remains to be seen. The question for Oracle customers is – is Oracle ready to upgrade from Oracle e-Business Suite, Peoplesoft, JD Edwards, Siebel etc. and the question for SAP customers is – does a look at Oracle make sense. |
| Oracle Management and Security Cloud |
Can Oracle attract the load– Oracle is late to the IaaS game, but has used the opportunity to redefine some IaaS best practices, e.g. having three data centers at a specific location. It has built a nested hypervisor to be able to attract heterogenous load. But Oracle still needs to show that it can attract the enterprise load – both organic – from existing customers – and external – from net new customers. The reason AWS gets so much attention in the keynotes is not only because AWS is the IaaS market leader, but also because Oracle must show a clear value proposition over AWS, to capture that load that is moving from on premises. When congressional representatives can ask ‘why don’t you put this on AWS?’ – fellow CxOs will as the CIO / CTO the same question. Verdict is still out.
 |
Leone introducing Oracle Recruiting Cloud |
Can Oracle become gentle? The SaaS Business is different to the perpetual license business. Enterprises and vendors need to work together directly and on a day to day basis. That means a certain degree of affinity does not hurt, but helps the relationship. And while Oracle is certainly respected, it is seldom liked by CxOs. Oracle cannot rely on technological superior products only to win over customers. It has to become more customer oriented, more gentle. The good news for customers and prospects is – that it is not hard. It usually means to give up margin. And Oracle has plenty of that.
 |
| Ellison introducing 18c |
MyPOV
A good OpenWorld for Oracle customers. The vendor took the next step that ultimately all enterprise software have to take – the step to make products self-running and autonomous. The highest frequency of change for a RDBMS is going to be a security measure, even more as database load moves to the cloud. Automating both is attractive to enterprises, and Oracle is the first RDBMs vendor out of the gate with that vision and a tangible product roadmap. But more than the RDBMs needs to be supported, also more of the Oracle tech stack, so addressing that larger scope will be a key area to watch. We also witnessed what is most likely the largest upsell opportunity Oracle has created, as almost every production (and maybe also development and test database) will need the self-driving, autonomous features of Oracle 18c (that’s an upgrade) and the cybersecurity announced with Oracle Management and Security Cloud.Beyond RDBMs Oracle has made progress on all layers of the stack. New Sparc / Exadata servers have been announced already before OpenWorld. IaaS gets cheaper storage, cheaper / better networking and more. Dyn seems to have been inherited. PaaS gets a Blockchain, Data Science Service and a serverless product. And Oracle can even partner with Microsoft, that re-iterated its commitment to Java. On the SaaS side, we will have to see that Oracle has reached functional parity or even a lead, that is easier said at OpenWorld than delivered with real customers. So, watch customer upgrades and adoption to the Oracle SaaS products.
On the concern side, Oracle needs to find a better way with customers and improve its image and day to day standing. Betting solely on the better product is risky. And with the overall bet of Oracle on the large, integrated, chip to click stack (from the Silicon to the user click in SaaS) – enterprises will even more think twice before they do business with a vendor of Oracle’s wreputation. Doing right and better with customers is always a good true North – but it seems it is not (yet) a priority for Oracle executives, as none of that was mentioned in the critical keynotes. More needs to be happen than just statements, programs and initiatives. And I know that Oracle executives know this – they just think they can get away with it by having the better product. That gamble will only work out if the product is so clearly superior, that enterprises have no alternative than use Oracle. To be fair, the Oracle integrated stack has that potential. There was a time when customers could only get a mainframe from IBM – like the vendor or not. But that’s not a long-term strategy, unless your product stays ahead of the pack – by miles. Fascinating to watch.
Overall, a good OpenWorld for Oracle customers. All product categories are being invested in and growing. Synergies in the layers of the Oracle stack emerge, e.g. in SaaS. Across the layers in e.g.Iaas and PaaS. And Oracle is plugging remaining gaps in HCM (for Taleo) and CX (for Siebel) on a single platform. At the same time Oracle is offering new capabilities, like multi environment deployment, serverless and more that make Oracle PaaS a serious contender for next gen applications. The AT&T deal, with Oracle’s Cloud at Customer deployment, may be a lighthouse opportunity after which more Oracle customers will continue their future with the vendor. So, it’s all about execution in Redwood Shores, once again. Stay tuned.
Want to learn more? Checkout the Storify collection below (if it doesn’t show up – check here) - all the major keynotes are covered:
- Larry Ellison Sunday - Autonomous Database - read here
- Mark Hurd Monday - Predictions - read here
- Steve Miranda - SaaS - read here
- Chris Leone - HCM Cloud - read here
- Donatelli / Kurian - IaaS, PaaS, SaaS and DaaS - read here
- Larry Ellison Tuesday - Oracle Management and Security Cloud - read here
More on Oracle:
- News Analysis - Oracle Unveils New Programs that Transform how Customers Buy and Consume Cloud – Gloves Off - read here
- Summer 2017 News Analysis - Oracle invests in IaaS (or at least CAPEX) - read here
- News Analysis - Oracle empties the barrel - Revolver style (6) Cloud News Analyses - read here
- Musings - Does Oracle and Accenture make sense - or never ever! - read here
- Progress Report - Oracle HCM Analyst Summit 2017 - Oracle HCM stronger and stronger - read here
- Event Report - Oracle OpenWorld - the HCM perspective - Almost no news, but wait... - read here.
- First Take - Early Oracle OpenWorld 2016 Keynotes - read here
- Event Preview - Oracle OpenWorld 2016 - What to expect, what to watch for ... will IaaS start Clicking? - read here
- Market Move - Oracle acquires NetSuite - Oddly consolidation means more options for customers - read here
- News Analysis - Oracle Unveils Suite of Breakthrough Services.. or short: Oracle Cloud Machine - read here
- Progress Report - Oracle Cloud - More ready than ever, now needs adoption - read here
- Event Report - Oracle Openworld 2015 - Top 3 Takeaways, Top 3 Positives & Concerns - read here
- News Analysis - Quick Take on all 22 press releases of Oracle OpenWorld Day #1 - #3 - read here
- First Take - Oracle OpenWorld - Day 1 Keynote - Top 3 Takeaways - read here
- Event Preview - Oracle Openworld - watch here
Future of Work / HCM / SaaS research:
- Event Report - Oracle HCM World - Innovation around the Core - read here
- Event Report - Oracle HCM World - Full Steam ahead, a Learning surprise and potential growth challenges - read here
- First Take - Oracle HCM World Day #1 Keynote - off to a good start - read here
- Progress Report - Oracle HCM gathers momentum - now it needs to build on that - read here
- Oracle pushes modern HR - there is more than technology - read here. (Takeaways from the recent HCMWorld conference).
- Why Applications Unlimited is good a good strategy for Oracle customers and Oracle - read here.
Also worth a look for the full picture
- Event Report - Oracle PaaS Event - 6 PaaS Services become available, many more announced - read here
- Progress Report - Oracle Cloud makes progress - but key work remains in the cellar - read here
- News Analysis - Oracle discovers the power of the two socket server - or: A pivot that wasn't one - TCO still rules - read here
- Market Move - Oracle buys Datalogix - moves more into DaaS - read here
- Event Report - Oracle Openworld - Oracle's vision and remaining work become clear - they are both big - read here
- Constellation Research Video Takeaways of Oracle Openworld 2014 - watch here
- Is it all coming together for Oracle in 2014? Read here.
- From the fences - Oracle AR Meeting takeaways - read here (this was the last analyst meeting in spring 2013)
- Takeaways from Oracle CloudWorld LA - read here (this was one of the first cloud world events overall, in January 2013)
And if you want to read more of my findings on Oracle technology - I suggest:
- Progress Report - Good cloud progress at Oracle and a two step program - read here.
- Oracle integrates products to create its Foundation for Cloud Applications - read here.
- Java grows up to the enterprise - read here.
- 1st take - Oracle in memory option for its database - very organic - read here.
- Oracle 12c makes the database elastic - read here.
- How the cloud can make the unlikeliest bedfellows - read here.
- Act I - Oracle and Microsoft partner for the cloud - read here.
- Act II - The cloud changes everything - Oracle and Salesforce.com - read here.
- Act III - The cloud changes everything - Oracle and Netsuite with a touch of Deloitte - read here.
Find more coverage on the Constellation Research website here and checkout my magazine on Flipboard and my YouTube channel here.