Hybrid Cloud Space Is Getting Interesting With Oracle Corporation (ORCL), International Business Machines Corp. (IBM), And Microsoft Corporation (MSFT) Competing

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It’s a well-known fact that those who shunned cloud for fear of losing revenue have started focusing more on cloud and cloud-based apps. That included Oracle Corporation (NYSE:ORCL), International Business Machines Corp. (NYSE:IBM) and Microsoft Corporation (NASDAQ:MSFT). It is the cloud that is helping to save their quarterly numbers. While the cloud provides abundant opportunities to grow, there are also some areas that generate interesting competition or presence. Ultimately, it was the needs of the businesses that settled the issue. Now, hybrid cloud is getting more traction among users, and the cloud solutions providers have turned their focus towards that. Let us look at the three companies presence in the space.

What is hybrid cloud and what are the advantages?

The hybrid cloud is nothing but an integration of a public cloud provider with a private cloud platform provider, which is meant for the use of a single enterprise. That differentiates Amazon.com, Inc. (NASDAQ:AMZN)’s Amazon Web Services and Oracle Corporation (NYSE:ORCL), International Business Machines Corp. (NYSE:IBM) and Microsoft Corporation (NASDAQ:MSFT). It is quite clear that these three tech firms were not concerned with AWS or its growth. The advantage of having a hybrid cloud would make connectivity easy in the workplace. Aside from managing files, enterprises can align different business processes like scheduling, internal messaging, analytics, business intelligence, and other CRM systems.

It is not that public cloud offerings can do to integrate with on-premises hardware only. It is quite possible that devices like fax machines, scanners, printers, and physical security hardware, such as fire detectors, and cameras, can be loaded into public cloud adoption. Using the component of private cloud would prove to be more efficient. The hybrid cloud model also enables IT decision makers of the businesses to have more control of both the public, as well as the private components. That was compared to using prepackaged platforms of public cloud, particularly for managing the enterprise content. Let’s look into how Oracle Corporation (NYSE:ORCL), International Business Machines Corp. (NYSE:IBM) and Microsoft Corporation (NASDAQ:MSFT) are placed in the hybrid cloud.

Oracle Corporation (NYSE:ORCL) enjoys its presence in three layers. But the most important is a hybrid cloud. For big enterprises, data security is a big concern for using cloud modules since the control in respect of storage, as well as maintenance are shifted to the cloud service provider. Though such concerns continued to remain, enterprises are seeing the hybrid capability as an option to shift front-ends to the public cloud. Oracle Corporation (NYSE:ORCL)’s solution enables businesses to integrate the public cloud, as well as, on-premises to be managed as one set of resources. The key factor is that its solutions were compatible with the current software of on-premise.

Another key factor is that its on-premise data could be moved to the cloud, as well as back on-premise, offering increased flexibility and agility levels to the enterprises and businesses. This is more than an attractive feature of having a hybrid IT environment, and the big enterprises are likely to take advantage of it to shift some business areas on a piecemeal basis to the cloud. Such companies might need the capability to shift data, as well as apps between cloud and on-premise.

International Business Machines Corp. (NYSE:IBM)’s Relay technology is regarded as a secret weapon to position itself in the hybrid cloud space. Its updates sync instantly across various cloud environments. The company has recently demonstrated how the it would help its customers take advantage of the cloud, as well as cognitive computing. The company believes that it would create a fresh generation of apps and services. The company also has its presence in three layers of cloud computing.

The advantage of International Business Machines Corp. (NYSE:IBM)’s Relay technology is that it ensures all cloud environments remain current. That enables the businesses to experience similar cloud visibility, as well as cloud content irrespective of the location. The company’s GM for Cloud Platform Services, Steve Robinson, said that Relay was a process of doing every update in the master to be relayed back to the other environments. He said that the company has established a beacon for connecting the two. He said also that his customers believe that the advantage of Relay lies in managed update capability rather than just being a managed service.

Microsoft Corporation (NASDAQ:MSFT) does not want to lag behind in cloud computing since it would be one of the losers of license revenue due to the rapidly growing cloud module. The company badly needs to offset the loss of revenue. The company struck an alliance with Red Hat Inc (NYSE:RHT) to bring some more flexibility to its hybrid cloud enterprise environments. The advantage of the alliance is that the cloud products that were running under the Linux OS would integrate with Microsoft Corporation (NASDAQ:MSFT)’s Azure. The agreement indicated the changing landscape in the OS and the software firm does not treat Red Hat as a rival.

The company’s Azure is like an umbrella for all its cloud products in respect of enterprises. That included everything be it websites or remote apps or virtual machines. There is also similar list available with Red Hat Inc (NYSE:RHT). It remains to be seen as to how they would manage to avoid being at loggerheads.

Hybrid Cloud Market

If Oracle Corporation (NYSE:ORCL), International Business Machines Corp. (NYSE:IBM) and Microsoft Corporation (NASDAQ:MSFT) are interested in hybrid cloud, it was because of the potential it has. Last year, hybrid ended with $25.29 billion, which would get a boost to $32.18 billion in the current year before jumping to $40.97 billion next year and $52.16 billion in the year 2017. By the turn of 2019, revenue generated from the hybrid cloud would reach $84.67 billion. Research firm, Gartner Inc (NYSE:IT) expects half of the enterprises to use hybrid cloud by 2017.

Conclusion

There is plenty of opportunities available in the hybrid cloud for Oracle Corporation (NYSE:ORCL), International Business Machines Corp. (NYSE:IBM) and Microsoft Corporation (NASDAQ:MSFT). Significantly, all the three have taken crucial steps to ensure that they don’t lag behind in hybrid cloud offerings. That should allow them to add significant numbers of their upcoming quarterly results.

Disclaimer: The opinions and data expressed herein by the author are not an investment recommendation and are not meant to be relied upon in investment decisions. The author is not acting in an investment advisory capacity, nor is this an investment research report. The author’s opinions expressed herein address only select aspects of potential investment in securities of the company or companies mentioned and cannot be a substitute for comprehensive investment analysis. Any analysis presented herein is illustrative in nature, limited in scope, based on an incomplete set of information, and has limitations to its accuracy. The author recommends that potential and existing investors conduct thorough investment research of their own, including detailed review of the companies’ SEC filings, and consult a qualified investment advisor. The information upon which this material is based was obtained from sources believed to be reliable, but has not been independently verified. Therefore, the author cannot guarantee its accuracy. Any opinions or estimates constitute the author’s best judgment as of the date of publication, and are subject to change without notice.

Viraj Shah

Viraj Shah has completed M.Com (Finance) and is currently pursuing his CFP. He tracks US markets along with other global markets like India very closely. He is very passionate about stocks, real estate, and technology. He also believes that money can always be made in the market.

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