Last spring, Oracle announced the Customer 2 Cloud program, which is helping enterprises smoothly transition to modern, cloud-based solutions while continuing to accrue value from on-premises investments. Oracle also reported that it has become the second-largest software-as-a-service (SaaS) provider in the industry. We spoke with Jeff Kristick, vice president of Oracle Human Capital Management, to find out how customers of HCM solutions are reacting to Oracle's Customer 2 Cloud program and the impact of SaaS on their IT roadmaps.
Q: What factors enabled Oracle to become one of the industry's leading SaaS companies?
A: Oracle has made a strong commitment to being a leader in SaaS, as well as other types of cloud solutions, starting with the development of Oracle Fusion Applications. Now we're seeing strong momentum in cloud-delivered Oracle applications, particularly for human capital management, customer experience, and marketing solutions. Our success today is reflective of the investments we've been making for years in product development.
Q: What impact will the Customer 2 Cloud program have on adoption of Oracle's SaaS applications?
A: Oracle is always cognizant of the technology investments that customers have already made, which is why it created Oracle Applications Unlimited to support applications running on-premises. With Customer 2 Cloud, we're also giving them a smooth financial transition to the cloud by allowing them to redirect existing seats toward a multiyear Oracle Human Capital Management Cloud subscription. This means that customers can use current support spend to move to modern cloud applications. In turn they can sign up for a cloud subscription to one of the Oracle solutions. It helps with the transition to the cloud and allows them to move at their own pace and with a solid business case.
Q: Is Customer 2 Cloud particularly important in the HCM space?
A: It is. The HCM community has a strong installed base of Oracle's PeopleSoft Human Capital Management, Oracle E-Business Suite's human capital management solutions, and Oracle's JD Edwards EnterpriseOne's human capital management solutions. Buyers want to move to the cloud on their terms -- when it makes sense from a business and financial perspective.
Q: What can you tell us about how this community is adopting Customer 2 Cloud?
A: It's still too early to give specific customer names. But I can say that since we launched it last April, we saw a strong uptake in that quarter and we've continued to see strong demand in our installed base since then. We are focused on helping customers build the business case for the cloud and helping them map out their journey.
Q: Are the people who are most interested in Customer 2 Cloud looking to immediately move their entire HCM platform to the cloud or are they interested in layering new capabilities onto their on-premises solution?
A: It's a good mix of both?an incremental shift and a transformational one. People recognize that they have important investments in on-premises HCM solutions that are still delivering significant value. Some want to layer new capabilities onto them over time. For example, they may want Oracle's talent acquisition cloud solution to improve how they source candidates, or they may want Oracle Talent Management Cloud to automate performance reviews. Other customers want to take a more transformational approach and move all their applications to the cloud. We see strong demand for both.