With economic growth around the world generally unimpressive, Oracle CEO Mark V. Hurd has shared some predictions for the future face of business.
His first prediction is that 80 percent of IT spending is going to be in the cloud rather than traditional IT by the year 2025. Currently, that same percentage is devoted to traditional IT efforts such as testing, upgrading, patching, tuning, and other maintenance. This leaves very little left over in the budget for innovation, which is a missed opportunity because the newest technology has the potential to dramatically increase revenue.
Hurd feels that firms can reduce their costs by 30 percent simply by making the shift over to the cloud. Not only does this save money, but it puts the responsibility of security in the hands of the cloud vendor. Cloud vendors have a vested interest in boosting application quality and security.
Moreover, he predicts that corporate-owned data centers will decline in number by 80 percent in the same period. As workloads shift to the cloud, he sees the need for such data centers falling as the business world moves closer to becoming fully digital. Physical IT assets can be costly and will soon become a thing of the past. He also envisions applications that are currently developed in-house being developed and run on cloud platforms and infrastructure. This will amount to savings on hardware and software as well as the electricity needed to power such systems.
Sharper Focus on Innovation
Finally, he foresees 80 percent of IT spending being devoted to innovation by 2025. He thinks the longstanding business models will be completely transformed by then, with innovation spurring much better internal collaboration tools and customer-facing applications than ever before.
As CEOs and CIOs face incredible pressure to bring results and new approaches, switching everything to the cloud can bring about significant benefits.
This blog post was based off of an article from LinkedIn by Oracle’s CEO, Mark V. Hurd. View the original here.