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At Oracle’s recent cloud computing analyst summit in sunny Palm Springs, the company’s executive team insisted that it sees clear skies for its efforts in cloud computing. The summit was led vr_BTI_importance_of_cloud_computingby senior executive Thomas Kurian, who runs the entire product organization and reports directly to CEO Larry Ellison. He affirmed that Oracle intends to offer the full range of cloud computing – public, private and hybrid models – to its customers and partners. As one of the world’s largest software suppliers Oracle has much at stake to make its database and all tools and applications available in these cloud environments, including managed cloud services. Our business technology innovation research shows this is a smart bet. Cloud computing is important or very important to 57 percent of organizations, and more than half (55%) of cloud users have been using it for more than a year. I noted in 2013 that simplifying IT and innovating in business are key to its software strategy, and Oracle’s efforts since then have executed on this outline.

Oracle has been developing a public cloud for some time, but in the last couple of years it sharpened its expertise and gained customers through acquisitions while refining its focus and investing in technology. Oracle now offers software as a service through its applications team covering HR, customer service, sales, marketing, ERP, finance, the supply chain and other areas. I recently assessed the Oracle HCM Cloud service, which provides a good example of what the company is doing and one that we awarded for 2013 Ventana Research Technology Innovation Award.

Oracle is determined to provide infrastructure as a service and elastic computing services for storage, identity verification, messaging and networking. Here it is competing directly against Amazon, IBM, Microsoft and others. Oracle also offers its platform as a service for using its database and tools in a variety of ways including the Web and mobile to collaborative methods. This strategy also includes analytics and big data. Our big data analytics research found 27 percent of organizations using cloud-based systems for this purpose, and it is gaining momentum as the preferred method of access: 22 percent prefer software as a service for big data analytics, 7 percent prefer a managed service, and 18 percent have no preference. Oracle is confident it can compete on price with other public cloud players. In addition its newest focus in the public cloud is information as a service, which brings corporate and public data together for business needs. Oracle is also strengthening its cloud computing marketplace so its software will be easy not only to access and purchase but also to onboard and use.

The private cloud computing area is somewhat different. CIOs need options to expand their compute power rapidly according to business needs; such a plan once had to be executed in the company’s data center, but now the cloud offers alternatives. In a more controlled manner than for the public cloud, Oracle provides the full life cycle of management through Oracle Enterprise Manager across its applications, platform, database and infrastructure, which can help most IT organizations simplify and reduce their focus on managing their infrastructure and enable them to focus on the value of the information and technology they provide for the business. Oracle offers multiple methods of deploying a private cloud: virtual machines for server consolidation, clustered databases for platform consolidation, and multitenant occupancy for database consolidation. Its private cloud platforms can provide a range of computing services to support applications and even enterprise deployments for use of mobile technology.

Oracle also offers a managed cloud service in which it builds and manages a private cloud environment similar to IT outsourcing except that Oracle owns the software being hosted. In this arrangement Oracle can provide in the cloud any of its applications, platform and infrastructure and can also connect to customers’ on-premises systems. Oracle says that more than 550 customers around the globe are using this service, processing 1.25 trillion business transactions per day; it stores more than 41 petabytes of data as well. In this offering Oracle competes directly with companies that have been offering this type of service in managed and outsourced approaches, including HP, Accenture and TCS. Oracle has been steadily building a strong position for its own outsourcing and managed approach to cloud computing.

These three cloud approaches have in common the Oracle database, running as a database as a service. Supporting it is the Oracle Fusion Middleware as a service that operates its business applications and is the basis to build custom applications by providing user, process, documents, information and identity services. Middleware is also where Oracle is advancing its support of mobile computing and big data as well as batch-to-real-time integration to applications and data across the enterprise and cloud along with Web services support through the REST and SOAP interfaces. Our research shows that integrating data from cloud applications is important to 80 percent of organizations. Oracle is releasing in the first part of 2014 more technology like Java, document and business intelligence as part of its Oracle Fusion Middleware as a service. Oracle has enlisted its Java technology to support the “as a service” concept to help move on-premises applications to the cloud but also to support application deployments. Oracle has worked to ensure its middleware can operate in the Microsoft Azure and Verizon Cloud services. Also part of middleware is the database as a service that is part of the Oracle cloud and of the compute service for elastic computing; it can be provisioned and used on a subscription or a usage basis; customers also can subscribe to backup as a service. Beneath the middleware and the database is the infrastructure as a service, which provides direct support for computing, storage, messaging, identity and notification services. Oracle supports integration of other cloud computing environments such as salesforce.com with its on-premises applications.

vr_ngbi_br_bi_deployment_preferences_updatedOracle also is expanding its presence in application-centric cloud deployments. For instance, its Oracle Business Intelligence Cloud service will be available in 2014; here it plans to provide a range of real-time and self-service analytics and integration of data from the cloud and on-premises systems. Oracle already has been supporting its own BI applications in the cloud, but this step will help it compete in a market where many options have been available for several years. Our next-generation BI research found a need for this in 2013, when 25 percent preferred software as a service for enterprise BI and nearly as many (22%) a hosted private cloud. It is even more important for mobile BI: 26 prefer cloud deployment, 30 percent chose hosted by supplier, and 36 percent had no preference; only 9 percent prefer on-premises for mobile BI. For another example, the Oracle Planning and Budgeting Cloud Service is now available, based on its Hyperion Planning software. In BI and planning in the cloud Oracle definitely is not first to market and indeed will have to catch up to build a brand and trust with customers in these areas.

Given its size, Oracle is uniquely positioned with server, database, vr_BTI_BR_top_benefits_of_cloud_computingplatform, tools and applications all operating in the cloud in public and private approaches and as a managed service. Only IBM is close to providing such an extensive software and technology stack. The competitive edge of preintegrating the entire stack in the cloud is a great position from which to grow its business. Our business technology innovation research finds that cloud computing has improved the availability of applications and information for business; one-third (34%) of organizations said it has improved availability significantly. In addition the research found that cloud computing has lowered costs, improved the efficiency of business processes, boosted communications and knowledge sharing, and increased productivity for more than one-third of organizations. The skies look clear and not cloudy for Oracle, which will be delivering more cloud computing on a very aggressive schedule throughout 2014 and 2015. If you are transitioning to or evaluating cloud computing in any manner, from infrastructure and platform to tools and business applications, Oracle is a provider you can’t ignore.

Regards,

Mark Smith

CEO & Chief Research Officer

In the near future, technology will be something we wear or attach comfortably to our bodies. Wearable computers have been evolving for some time, and while that might seem futuristic to the uninformed, VRLogobug400x400in the technology industry it is rapidly becoming real. This trend is important for businesses to note, as our business technology innovation research shows that it is very important to more than half (56%) of organizations to find methods to use technology innovation to support both business processes and their people. Mobile technology is the third-most important innovative technology, after analytics and collaboration, and innovators will use all three together. Many organizations focus on acquiring and retaining the best possible workforce, which after all is their most valuable asset.

This is the context for wearable computing, a new kind of miniaturized mobile technology that can receive input and communicate with other Internet-enabled technology and even users in various ways. The first generation of tools is now available for purchase, taking the hyperbole about the Internet of Things closer to practical reality. We can’t teleport like Captain Kirk in Star Trek, touching his uniform sensor and saying, “Beam me up, Scotty,” but less fantastic wearable communication devices are here: Internet-enabled and connectable watches and glasses that make it possible to get information and respond to others readily. A bit farther out in the future of embedding computing in clothes is a new science called e-textiles and smart fabrics, which will also extend the potential for helping us work and communicate.

Internet-enabled bracelets and attachable technology eventually will be as small as earrings or a business card, but the first options, now available, are glasses and watches. Google Glass made its debut, but it is really for the technological elite who can afford it. Google is rumored to be planning to scale up production of the glasses, but Internet-enabled watch production is moving forward more rapidly. Following on the evolution of smartphones is the smartwatch, which are already in market and more will be coming out this year from technology manufacturers LG, Samsung and others. This will change the nature of a watch from a timekeeper to an informative device that can provide as well as situational alerts and weather updates help with business tasks and communication with customers. It’s not hard to imagine, after further investment, workforce notifications like time-off approval or analytic indicators being exchanged through smartwatches. This leap forward has been gathering strength since the 1980s, believe it or not, and has been revived as the Internet and smartphones enable monitoring of wellness and physical activity.

In fact, the most immediate value of wearable computing probably is in wellness; basic activity-tracking technologies are mainstream. As the technology advances, information will be more readily accessible through the Internet to the individual wearer or perhaps even to employers to track the health of their employees in high-risk work environments. As well as health monitoring and advances in the medical and healthcare industries in what’s called the body-area network, there are other aspects of activity tracking for work through wearable computing.  It can track the daily aspects of workforce management and even for labor regulations where the physiological well-being of employees is critical; miniaturized sensors can detect body temperature, pulse and other cognitive indicators. At some point sensors to monitor dangerous environmental elements such as gases or poisons will save lives. All of these innovations hold great promise of value for both individuals and the businesses they work for to provide confidence in safety and employee satisfaction.

While many of the foundation aspects of activity and physiological monitoring have been available for some time, it’s now becoming cost-effective for mass consumption. The most prevalent vr_HCA_10_data_types_used_in_human_capital_analyticsproducts are those that track walking, exercise and sleep patterns, from FitBit, Jawbone, Nike and others. And there are small devices like Misfit that can be worn as jewelry or carried in a pocket. While there have been instances of some of these devices causing irritation because they must contact the user’s skin to detect physiological activity, we expect these issues to be resolved soon. These popular items also can connect to applications on Apple and Android devices to provide status updates and other information about the wearer’s health. The information from these devices can be made accessible to employers that have wellness campaigns to engage the workforce and encourage people to be more fit and able to work. Our research in human capital analytics shows that people-related metrics are the first-ranked priority for 34 percent of organizations and that being able to get employee data is the most important to three out of four (76%); this has implications for the use of activity-monitoring data. Of course, this kind of use brings up privacy issues that have yet to be addressed but are no different than other devices used like smartphones and tablets except that now we might have more personal or body related information.

I hope this begins to show why all of us should pay attention to the arrival of wearable computing. This business technology trend will not show up in the IT priority list and probably not from conventional wisdom approach by IT analysts as they are not researching or engaged to business needs for technology but no worry as the relevance of it should not be underestimated. Used properly this new type of technology could help workforces be more productive and engaged and enable employers to receive and provide at a moment’s notice relevant environmental and physiological information based on the individual’s location and situation. The collaborative aspect of wearable computing is a key challenge that must be met to ensure that communications are streamlined and features of other technologies are incorporated. For example, wearable computing will be even more engaging when it includes the speech capabilities of smartphones. And with the growth in volumes of data, aspects of big data and analytics will be essential to optimize the information communicated through wearable computing.

These technological advances are part of the future of human capital management and included in our research agenda for this year but is just as important to the specific needs of sales, service., manufacturing, supply chain, operations and other business roles in an organization. Our technology innovation research identifies business improvement and improving the quality of business processes as driving examination of new technologies in more than half (57%) of organizations. In addition, the research shows organizations that are advancing in their use of the mobile technology experience benefits such as better communications and knowledge sharing in 62 percent of organizations; this suggests that, like other mobile devices, wearable ones can contribute to building a more engaged and satisfied workforce. This innovation provides new opportunity for organizations seeking a competitive edge and retention and productivity in its workforce. It will be a fascinating trend to follow, and we will be watching it closely.

Regards,

Mark Smith

CEO & Chief Research Officer

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