‘Technology firms lose $16b revenue in two years’
These firms, which are mostly international, may have lost about $16 billion in the last two years, resulting from several economic meltdown currently facing economies globally.
Making this disclosure at a press briefing in Lagos to announce the planned ‘Oracle Cloud Day’ scheduled for November 17, the Country Manager, Oracle Nigeria, Adebayo Sanni, said the firm will be riding on the success of the recently held Oracle Open World in San Francisco, USA, last month, which had more than 50, 000 participants from across the globe with over 100 participants from Nigeria.
Sanni said the relevance of cloud technology for Nigerians cannot be over emphasized because that is the future. According to him, the various cloud technology solutions and strategies being churned out by Oracle gave it about seven per cent growth, “this is even when other big IT companies have in the last two years suffered combined loses of about $16 billion in revenue. In fact in the last five years, we discovered that IT spending have dropped significantly.”
According to him, it has become important again to discuss cloud strategies for business growth especially for emerging countries like Nigeria, stressing that lots of companies Chief Executive Officers (CEOs) needed to get their priorities right, by looking for measures to enter new market, drive revenue growth and survival in the market that has become highly competitive
“There is need for CEOs to look at the future and this is where cloud actually comes in. At the Open World, customers were opened to what Oracle was doing concerning cloud going into the next decade. There we explained our cloud strategies, which are Software As A Service (SAAS); Infrastructure As A Service (IAAS); Platform As A Service (PAAS). Oracle is the only company playing in these key areas. Lots of announcements were made in terms of key designed areas, which our strategy was actually based on in terms of driving cloud in the last 10 years. This has also formed part of the reason why we are organizing the ‘Oracle Cloud Day’ in Nigeria.
“We have changed it from just the Oracle Day because we have come to realise that we need to get people aware that the future is cloud. It is coming up November 17 in Lagos and we shall be giving customers the opportunities to drive their own agenda. It is really key for us to introduce latest developments in the cloud that would be beneficial to this part of the globe. We are looking forward to over 500 customers to be able to share the future together as far as cloud is concern”, he stated.
Sanni, who disclosed that Oracle has sold about $450 million worth of cloud solutions as at May 2015, said the challenges with IT spend have to be looked in two ways, which are ability to drive agility and enter new market with focus on driving revenue and survival.
He explained that survival means that players like Oracle will need to look at where their IT spend is going and value coming from there, which centres around operating model, which are the technical depth and security.
“These have contributed significantly in revenue drop for companies and apart from this, the age of IT equipment in many companies have also dropped significantly, over 30 per cent. 80 per cent of the budget actually spent on maintenance and this will continue to be a challenge for CEOS and CIOs and there is also the issue of system failures.