The Reason Behind Larry’s Change of Mind:

Looking at Oracle‘s SaaS offerings, over 100 apps are now being recommended by the company via cloud. In the past two years, Oracle has acquired human resource and talent management company Taleo for $1.9 billion and a customer service app RightNow for $1.4 billion. Those, along with other apps for financial management, procurement and social networking are all delivered through the cloud.

Along with SaaS service, Oracle also has demonstrated their strong place in platform as a service (PaaS) offerings.  Java development frameworks, database management and middleware tools to create and set out applications are just some of them.

According to Andrew Bartels, a Forrester analyst, the reason behind Ellison’s positive turnover to cloud maybe because he has recognized the change in the tech world since his remarks.

However cloud doesn’t cause a short term threat for Oracle. But when it comes to long term, for a company which has mainly relied on service and maintenance revenues, it may pose a threat. Bartels sights that this might be the sole reason behind Ellison’s recent insistent move to become a key piece in a division, once he simply labeled ‘a fad.’