#oow16:By 2025 number of corporate owned datacenters will drop by 80%, says Oracle CEO

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By 2025 the number of corporate-owned data centers will decline by 80%, therefore forcing the CIOs to spend 80% of the their IT Budgets on innovations and not maintenance.

This prediction was made by Oracle CEO, Mark Hurd during the 2016 Oracle Open World, held in San Francisco California.

“The datacenters will decline symmetrically as workloads move to the cloud. The corporate datacenters that will remain will be using older hosting systems. This will facilitate the flip of IT budgets from maintenance to innovation,” he said.

With this prediction, Mr. Hurd explained further that with the prediction, cloud providers will take on the cost and complexity and since cloud solutions re-engineer the economics of IT, new ways to innovate to gain share, engage customers, bring new products to market and grow revenue will emerge.

Other predictions made by Mark Hurd an increase by 80% of production apps in the cloud, 2 suite providers to own 80% of the SaaS market, 100% of Dev/Test will be Cloud, nearly all enterprise data will be stored in the clouds and enterprise clouds will be the most secure IT, which is a prediction he still made last year.

According to Mr. Hurd, the argument on moving to the Cloud by many organizations is centered on cost effectiveness of adopting cloud solutions.

“Any CEO will tell you that if all cloud did was cost ;ess, it would be worth adopting, forgetting that cloud does more,“ he said,” but what CEOs forget is that cloud helps drive down capital expenditure , reduces labor costs, created certainty of monthly expenses as well as reduces costs on maintenance, upgrades and patches.”

He also added that as opposed to datacenters, cloud is more secure, reliable, extensible, easier to is, faster to market , extend applications and meet demand faster and to achieve this, cloud providers also invest a lot.

This year, Oracle used up to 5.2 billion USD on its R&D as a percentage of total revenue for al cloud vendors. Oracle also recorded 82% growth rate in the cloud.

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