Oracle continues to migrate its business and that of its customers to the cloud.

During the month of June, Oracle announced a series of initiatives designed to help inspire and enable organizations to adopt its cloud services, known as Oracle Cloud Infrastructure (OCI). There is also a lot at stake for Oracle, as it faces increasing competition from Amazon, Google and Microsoft who offer competing options for Oracle’s line of business applications in the cloud. Oracle released its financial results for fiscal 2021 on June 15, with cloud services and license support revenue for the year of $ 28.7 billion, up 5% from a year over year.

Among the initiatives Oracle launched in June to help businesses migrate to the cloud is the addition of 13 new services to its free offering on OCI. The free tier provides free access to OCI for limited use cases that allows users to try out the platform. Among the new services that have landed on the free tier are the Ampere A1 Compute instances. Oracle first announced high performance Ampere based on ARM in late May, offering an alternative to Intel-based x86 which is more commonly deployed on cloud infrastructure.

Ellison Steps Up Migration Efforts to Oracle Cloud

At an Oracle Live webcast event on June 22, Oracle founder Larry Ellison (on the picture) detailed his company migration to the cloud efforts and announced a new incentive support program and new pricing structure.

The new Oracle Support Reward program is designed to incentivize Oracle on-premises users to migrate to the cloud by providing credits that reduce a company’s Oracle support costs. Ellison explained that, quite simply, for every dollar an organization spends on OCI to run a workload, Oracle will reimburse 25 cents of the company’s Oracle support costs. He noted that some companies “spend a lot of money” on support invoices and now have the option of getting some of that money in the form of credits to the cloud.

For Ellison, the way to help more users adopt Oracle’s cloud is to remove what he called friction in the system.

“We’re actually getting a lot of smaller, less tech-savvy customers using our technology and moving to the cloud,” he said. “To better serve these customers – to better serve all of our customers – we have changed the way we do business.”

One of the ways that Oracle has changed in the cloud age is that it has moved away from selling licenses for an application, where there are significant upfront costs before an organization even begins to sell it. use.

“Our customers don’t like it,” Ellison said.

In the cloud, users don’t pay an upfront license fee, but instead pay for the services they use, once they are consumed and benefit from them.

Another thing that Oracle is actually changing is to actually provide publicly traded prices and discounts. Ellison admitted that Oracle’s business model in the past encouraged customers to negotiate a lot because the list price and the actual retail price were different, with some users being able to negotiate very large discounts.

Oracle is now moving to published pricing for its cloud services, with a defined pattern of usage-based discounts.

“We’re going to lower everyday prices, published prices, standard volume discounts, and pay as we go,” Ellison said.



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