The Cloud: A Fundamental Business Model Shift

Emphasizing that cloud computing isn’t so much a technology as a new business model, Oracle CEO Mark Hurd said it’s critical to helping companies worldwide achieve their four main priorities: increase revenue, boost cash flow, decrease spending, and manage risk.

At the root of that business model shift is the ability to free up money and people to innovate—help create new and different digitally driven products, services, and customer experiences within flat IT budgets, Hurd said last week during his keynote at Oracle Modern Business Experience in Las Vegas. That ability becomes particularly important in the current slow-growth economic environment, in which most companies must grab market to increase revenues, he said.

Unlike the tech special du jour—whether it’s big data, virtualization, artificial intelligence, or blockchain—the cloud is something bigger. “Why has cloud stuck over the course of 10 years? It’s not a technology. It’s really a business model,” he emphasized. “At its core, it simply drives down capital expenditures, reduces labor, creates certainty of outcomes, and reduces the cost of overall maintenance. In the end it costs less. And while it does all that, it’s actually more reliable, more secure. And it gives you access to more innovation.”

At the root of that business model shift is the ability to free up money and people to innovate—help create new and different digitally driven products, services, and customer experiences within flat IT budgets, Hurd said last week during his keynote at Oracle Modern Business Experience in Las Vegas. That ability becomes particularly important in the current slow-growth economic environment, in which most companies must grab market to increase revenues, he said.

Unlike the tech special du jour—whether it’s big data, virtualization, artificial intelligence, or blockchain—the cloud is something bigger. “Why has cloud stuck over the course of 10 years? It’s not a technology. It’s really a business model,” he emphasized. “At its core, it simply drives down capital expenditures, reduces labor, creates certainty of outcomes, and reduces the cost of overall maintenance. In the end it costs less. And while it does all that, it’s actually more reliable, more secure. And it gives you access to more innovation.”

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