About 30% of business applications have moved to cloud in India: Oracle

At a time when the buzz is all about the adoption of generative AI, only 30 per cent of business applications have moved to the cloud in India, said Oracle India. While this is similar to the global trend, it also represents a huge opportunity for Oracle.

Shailender Kumar, Senior Vice President and Regional Managing Director, Oracle India said: “Given the kind of applications that can be moved to cloud, as a few may be on mainframes too, only 30 per cent has been moved to cloud. While this is a global figure, for India too this will be similar.”

Kumar further added that today every customer across verticals like BFSI, telecom, retail, large or SMB etc., are discussing cloud and how fast they can do so. “The discussion is around, how fast we can move, and then of course, allay some of the fears they have like security, control over data, latency,” said Kumar at a select media meet during Oracle CloudWorld Tour in Mumbai.

Kumar’s comments are of significance as Oracle is one of the largest solutions providers in the database segment and works with over 20,000 customers across enterprises, SMEs and the public sector in India.

Oracle in India has clocked 50 per cent year-on-year growth in cloud consumption in recent quarters. “In India, Oracle has clocked 50 per cent YoY growth in cloud consumption in the recent quarter. Also, our SMB business has been growing in cloud consumption by over 70 per cent for the past three years. Our cloud regions in Mumbai and Hyderabad are running at full capacity, with customers deriving business benefits of scale, price, performance, and reduced costs – it’s multicloud or hybrid cloud,” said Srikanth Doranadula, Group Vice President, Technology, Oracle India.

When asked what is driving its growth in India, Kumar said there are four reasons for its growth.

“First, wherever customers have Oracle workloads, they are talking about innovation and then transformation into cloud. Second is the open-source drive and adoption, and we have a presence there with MySQL. Third is the data platform such as warehousing and the entire analytics. Everyone has huge data and it's only increasing. This data will only make sense if it's topped with a layer of analytics,” he said.

And the fourth driver is generative artificial intelligence (GenAI). Kumar said that Oracle has been embedding AI in its products for years. “Every industry is exploring what are the use cases for genAI,” he reiterated.

To capture the growing market of cloud, Oracle has also revamped its India cloud strategy. The company is moving to a more vertical structure and focusing on verticals like healthcare, BFSI, manufacturing and telecom, education etc. The company has traditionally dominated space like BFSI, telecom and public sector.

Meanwhile, the company announced partnerships with fintech and lending player Yubi and Apollo Health & Lifestyle. Yubi is using Oracle Cloud Infrastructure to run its co-lending platform across India. Yubi’s platform handles more than 1 million daily average transactions, enabling 750 lenders to disburse joint loans worth $1.2 billion to more than 1 million customers across India.

Apollo Health and Lifestyle will use Oracle Fusion Cloud Enterprise Resource Planning (ERP) to optimise its financial operations and increase productivity. With Oracle Cloud ERP, Apollo Health & Lifestyle will be able to eliminate manual processes and embrace continuous innovation to improve speed and accuracy in reporting, align financial and operational planning, and gain insights to drive better decisions.

Pointers:

--Oracle India clocked 50% YoY growth

--SMB business cloud consumption up by 70% for past 3-yrs

-- Fusion applications saw a double-digit growth in H1FY24 with continuous growth riding on 43% in Q4FY23

-- Within SaaS, ERP cloud business contributed 34% growth in H1 FY24 YoY.
 

-- Q2FY24 has been the 3rd consecutive quarter of growth for Oracle Fusion Cloud Business
 

-- In Q2FY24, gained 28% revenues from net new customers
 

-- In Q2FY24, saw 13% overall growth – core ERP with 14%.