Cloud Wars
  • Home
  • Top 10
  • CW Minute
  • CW Podcast
  • Categories
    • AI and Copilots
    • Innovation & Leadership
    • Cybersecurity
    • Data
  • Member Resources
    • Cloud Wars AI Agent
    • Digital Summits
    • Guidebooks
    • Reports
  • About Us
    • Our Story
    • Tech Analysts
    • Marketing Services
  • Summit NA
  • Dynamics Communities
  • Ask Copilot
Twitter Instagram
  • Summit NA
  • Dynamics Communities
  • AI Copilot Summit NA
  • Ask Cloud Wars
Twitter LinkedIn
Cloud Wars
  • Home
  • Top 10
  • CW Minute
  • CW Podcast
  • Categories
    • AI and CopilotsWelcome to the Acceleration Economy AI Index, a weekly segment where we cover the most important recent news in AI innovation, funding, and solutions in under 10 minutes. Our goal is to get you up to speed – the same speed AI innovation is taking place nowadays – and prepare you for that upcoming customer call, board meeting, or conversation with your colleague.
    • Innovation & Leadership
    • CybersecurityThe practice of defending computers, servers, mobile devices, electronic systems, networks, and data from malicious attacks.
    • Data
  • Member Resources
    • Cloud Wars AI Agent
    • Digital Summits
    • Guidebooks
    • Reports
  • About Us
    • Our Story
    • Tech Analysts
    • Marketing Services
    • Login / Register
Cloud Wars
    • Login / Register
Home » How Larry Ellison Will Build Oracle Cloud ERP Into a $30-Billion Business
Cloud

How Larry Ellison Will Build Oracle Cloud ERP Into a $30-Billion Business

Bob EvansBy Bob EvansDecember 14, 2021Updated:December 22, 20215 Mins Read
Facebook Twitter LinkedIn Email
Screenshot from video of Larry Ellison discussing Oracle cloud ERP
Share
Facebook Twitter LinkedIn Email

As thousands of Oracle ERP customers move to the cloud and as Oracle enriches its cloud-based Fusion ERP applications with industry-specific capabilities, Oracle’s ERP business should exceed $30 billion within the next 5 years, says chairman Larry Ellison.

On my weekly Cloud Wars Top 10 rankings, Oracle is #6.

In last week’s fiscal-Q2 earnings call, Ellison wove together two emerging trends that he says will inexorably lead to Oracle building a massive cloud-ERP business that he believes will surely reach $20 billion and could even surpass $30 billion:

  • the customer dynamics that point to a massive migration of up to 7,500 on-prem Oracle ERP customers to Fusion ERP; and
  • the booming appetite among businesses of every type for industry-specific solutions, which Oracle plans to enmesh around a Fusion ERP core.

Ellison’s grand plan blends some of the old—vast numbers of business customers jumping from on-premises into the cloud—with the new: the surging demand for purpose-built industry-specific solutions that provide greater specificity to help businesses optimize an entirely new generation of processes built for the digital economy and capable of harnessing the full power of data.

The great ERP migration 

On the migration side, Ellison said 8,500 customers have purchased Oracle’s various legacy ERP applications: E-Business Suite, JD Edwards, and PeopleSoft. Of those 8,500, he said, only 1,000 have moved so far to Fusion ERP, which means that 7,500 are moving into the red-hot prospect category.

“Those are all new customers,” Ellison said in an extended discussion about his ERP vision during the Dec. 9 earnings call.

“Add to that our 28,000 NetSuite ERP customers and that means Oracle could have a total of 35,500 cloud ERP customers that are new to Oracle. Only 1,000 of our on-premises installed base have migrated so far.”

Ellison then switched his focus from the sheer number of customers that could migrate to Fusion ERP to the potential revenue of the cloud ERP business for Oracle. He noted that it’s roughly a $5-billion business now on an annualized basis with a growth rate of about 30%, and that in addition to the 7,500 Oracle on-prem customers that have not yet moved to the cloud, there are lots of competitors’ customers to pursue as well.

“So let’s look out five years and ask the question, how big will we be in five years? I think the numbers are going to be approaching $20 billion in cloud ERP, where the majority of those customers are not migrating from Oracle’s on-prem business but instead are migrating from other people’s on-prem business, whether it’s a small company like Infor or a large company like SAP or a variety of other companies,” Ellison said.

A few minutes later, however, Ellison bumped up his estimate significantly from $20 billion because of the potential of a new category of digital-business solutions with Fusion ERP at the core surrounded by a tightly integrated set of industry-specific solutions.

And to me, this is the real heart of the matter for (a) the business customers looking to leverage modern cloud technology to thrive in the digital economy and (b) the cloud providers competing savagely for the enormous revenues the leaders will surely grab.

“Before I describe those capabilities, I have a confession to make,” Ellison said, although I have to say he sounded more giddy than contrite.

“I don’t believe we are on our way to building a $20 billion cloud ERP business in five years because in fact I think it’s going to be a lot bigger than that,” he added. 

“As more and more companies adopt and run Oracle Cloud ERP, ask the question, ‘What does a B2B procurement transaction look like?’ In other words, how does it work when one Oracle Cloud ERP system is talking to another Oracle Cloud ERP system and placing an order?,” Ellison said.

In Ellison’s view, what that looks like is a whole new generation of industry solutions tightly integrated with Fusion ERP to deliver capabilities that far transcend what current or past ERP systems could offer.

“We are working in concert with our banking and logistics partners to originate purchase financing, product shipment, delivery tracking, invoicing and payments right inside the two transacting Oracle Cloud ERP procurement systems,” he said. 

“Oracle Cloud ERP will soon bring an entirely new level of automation to B2B commerce, one that very much resembles the ease of doing business and efficiency of B2C e-commerce. This new ERP automation system with all these new capabilities will dramatically simplify our customers’ procurement and supply-chain processes. 

“And as such, it represents a huge new opportunity for Oracle to grow its Cloud ERP ecosystem.”

This is the sort of astonishing new-age digital innovation that makes me think that the Cloud Wars in 2022 and 2023 will make those of 2020 and 2021 seem in comparison like holiday picnics. So lace ‘em up tight!

Cloud Cloud Revenue Cloud Wars Cloud Wars Archive Earnings Call ERP Industry-Specific Solutions Oracle
Share. Facebook Twitter LinkedIn Email
Founderuser

Bob Evans

Founder
Cloud Wars

Areas of Expertise
  • AI
  • Cloud
  • Digital Business
  • Innovation
  • Leadership
  • LinkedIn

Cloud Wars Founder Bob Evans actively analyzes the Cloud and AI categories through video reports, in-depth analyses, and interviews with the Cloud and AI market’s leaders and innovators. He’s also the creator of the Cloud Wars Top 10, a ranking and ongoing analysis of the world's most influential tech companies driving digital business and the digital economy. Bob is recognized as a world-class strategic communicator focused on emerging business strategy, disruptive innovation, and forward-looking leadership.

  Contact Bob Evans ...

Related Posts

AI Agents, Data Quality, and the Next Era of Software | Tinder on Customers

July 3, 2025

AI Agent & Copilot Podcast: AIS’ Brent Wodicka on Operationalizing AI, the Metrics That Matter

July 3, 2025

Ajay Patel Talks AI Strategy and Enterprise Adoption Trends | Cloud Wars Live

July 2, 2025

Slack API Terms Update Restricts Data Exports and LLM Usage

July 2, 2025
Add A Comment

Comments are closed.

Recent Posts
  • AI Agents, Data Quality, and the Next Era of Software | Tinder on Customers
  • AI Agent & Copilot Podcast: AIS’ Brent Wodicka on Operationalizing AI, the Metrics That Matter
  • Ajay Patel Talks AI Strategy and Enterprise Adoption Trends | Cloud Wars Live
  • Slack API Terms Update Restricts Data Exports and LLM Usage
  • Google Cloud Still World’s Hottest Cloud and AI Vendor; Oracle #2, SAP #3

  • Ask Cloud Wars AI Agent
  • Tech Guidebooks
  • Industry Reports
  • Newsletters

Join Today

Most Popular Guidebooks

Accelerating GenAI Impact: From POC to Production Success

November 1, 2024

ExFlow from SignUp Software: Streamlining Dynamics 365 Finance & Operations and Business Central with AP Automation

September 10, 2024

Delivering on the Promise of Multicloud | How to Realize Multicloud’s Full Potential While Addressing Challenges

July 19, 2024

Zero Trust Network Access | A CISO Guidebook

February 1, 2024

Advertisement
Cloud Wars
Twitter LinkedIn
  • Home
  • About Us
  • Privacy Policy
  • Get In Touch
  • Marketing Services
  • Do not sell my information
© 2025 Cloud Wars.

Type above and press Enter to search. Press Esc to cancel.

  • Login
Forgot Password?
Lost your password? Please enter your username or email address. You will receive a link to create a new password via email.