Oracle Corp has predicted a sharp drop in the traditional IT spending of businesses across the globe over the next decade, making way for cloud services and leaving more room for innovation than hardware and software maintenance.
The forecast comes even as Oracle Corp has acquired a US-based cloud security start-up founded by two techies of Indian origin, Rohit Gupta and Ganesh Kirti. “By 2025, 80 per cent of IT budgets will be spent on cloud, and not on traditional IT. Almost all of the new applications will be on SaaS (Software as a Service) applications by 2025,” Oracle Corp CEO Mark V. Hurd told reporters here. “The spending on cloud infrastructure will continue to accelerate. It will not again be linear. It will be geometric in terms of the speed by which it will move,” Hurd said at the Oracle OpenWorld 2016 Conference here.
The US-headquartered company, which claims to be the fastest growing cloud firm, reported an 82 per cent revenue growth in its SaaS and related services at $815 million for June-August quarter. Oracle, which has a total of 20,000 cloud customers, said increasingly more and more companies will rely on cloud. He said there were also no security issues in cloud, which is a major concern for the future.