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IT Innovation | September 27, 2017

Cloud Changes Economics of Innovation

By: Nick Whitehead

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The cloud is a transformative technology—it really does change everything. The cloud, like the internet before it, is in the process of affecting every industry and geography. Why? In the digital economy, it's the new model of how IT services will be produced and consumed. Cisco's Global Cloud Index estimates that by 2019, 86 percent of workloads will be in the cloud.

The cloud is changing how businesses run and people work, it’s creating new categories and disrupting existing categories, and it’s changing how we communicate and share. The cloud is also changing the economics of business forever. And this is happening at an incredible speed and is here today. It presents an incredible opportunity for all of us.

According to digital strategist, author, and cloud computing expert Joe Weinman, the value of cloud computing goes beyond the money that is spent and hits at the heart of innovation. The ability to do things that weren't possible before is a primary driver, as is the value this creates. The cloud changes the economics of innovation—a new cloud economy allows you to save money and make money.

As a cloud services company, Oracle provides as a subscription much of what used to consume 80 percent of IT budgets on premises. This can create significant savings in terms of hardware and the number of people needed to manage and maintain it.

As Weinman says, the key driver for cost reduction in the cloud is what you pay when you don’t use it: zero. No need to invest in infrastructure to cope with peaks of demand, because you can consume on demand as needed—you might call this "elastic computing."

However, the most important value of the cloud is how innovation helps you make money. You can deliver new capabilities to the business and streamline existing business processes to create efficiencies much faster using the cloud. In that way, businesses see the value quicker.

Because Oracle provides you the choice and flexibility to subscribe to a blend of infrastructure, platform, and complete "cloud-native" applications, you can establish a balance, using all three to get the agility and flexibility that suits you.

The financial cost of the transition to the cloud is also minimized because Oracle's capabilities provided on premises and in the cloud (or a hybrid) are the same, so deployment can be flexible and seamlessly managed from development to test to deployment, with no recoding.

Our Innovation, Your innovation

The cloud is great for innovation and provides the best environment for collaboration between you, the customer, and Oracle, the cloud provider.

  • The cloud is the best place for you, our customers, to deliver your innovation because it offers both the agility and flexibility to develop new digital capabilities as fast as the business demands and deploy them at scale.
  • It's also the best and fastest way for you to access our innovation because all of Oracle's new capabilities are developed first in the cloud and released to customers quicker the same way.
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