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Oracle Eyes AWS Success, Shifts Its Focus to Infrastructure as a Service

If yesterday?EU?s conference call with investors is any indication, Oracle?EU?s obsession with Amazon Web Services (AWS) is only growing. That’s probably not surprising, given the former?EU?s decision to invest heavily in its infrastructure-as-a-service (IaaS) business as a way to offset declines in revenues for its licensed software business.

But Oracle still has a long way to go before it will be ready to give the likes of AWS a run for its money in the IaaS space. Oracle chairman and CTO Larry Ellison (pictured above) made repeated references to AWS during yesterday’s call. The company also touted an increase of 62 percent in its quarterly cloud sales over the same period last year, reaching $1.2 billion for its fiscal 2017 third quarter that ended Feb. 28.

PaaS and SaaS Lead the Way

While that appears to be an impressive growth spurt in a relatively short time, that still leaves Oracle way behind Amazon?EU?s cloud business, which reported $3.6 billion in quarterly sales, a 47 percent jump in growth compared with a year ago.

However, Ellison chose not to focus on Oracle?EU?s software-as-a-service (SaaS) business or its platform-as-a-service (PaaS) business, which together represent the bulk of its revenues. Rather he focused on the company’s relatively smaller IaaS business, which generated only $178 million last quarter and grew only 2 percent over the previous year. Nevertheless, Ellison claimed that IaaS will soon be growing faster than either SaaS or PaaS eventually becoming Oracle?EU?s largest cloud business.

?EU?Both our SaaS and PaaS businesses are doing great, but I?EU?m even more excited about our second generation IaaS business,?EU? said Ellison. ?EU?Our new Gen2 IaaS is both faster and lower cost than Amazon Web Services.?EU? Ellison went even further, saying that the largest Oracle databases can only be run on the Oracle Cloud.

Bringing Oracle Databases…

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