[Forbes] Oracle’s Mark Hurd: 3 Forces Are Driving Cloud Computing

Want to know why you’re hearing so much about cloud computing these days? Oracle CEO Mark Hurd points to three reasons:Mark Hurd at Oracle OpenWorld 2015.

  1. Companies feel an incredible need for tech innovation.
  2. The IT infrastructure they have to innovate on is old.
  3. There’s no money.

“That’s what’s driving this. Nothing else,” said Hurd at his keynote at the Oracle OpenWorld 2015 user conference. “It’s macro- and microeconomics, and the ability to get from here to there at a lower cost and get to faster innovation now.”  With those conditions as a backdrop, Hurd made five bold predictions about cloud computing by 2025:

  • Compared to about 25% today, 80% of all production apps would be in the cloud.
  • Two software suite providers would have 80% of the software-as-a-service market (Oracle will be one, Hurd said).
  • All of application development and testing will move to the cloud.
  • Virtually all enterprise data will be stored in the cloud.
  • Enterprise clouds will be the most secure place for enterprise data.

Let’s break down those three economic conditions that Hurd sees driving cloud momentum, in reverse order starting with “no money.”

No Money for IT

Hurd exaggerates of course by saying there’s “no money,” but it sure feels that way in many IT organizations, as tech spending declines worldwide. IT spending will fall by as much as 5% this year, according to analyst estimates, even as the pressure grows for digital innovation, from mobile apps to the Internet of Things.

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