Here are the key excerpts from the Oracle CloudWorld held in Mumbai,
Cloud based applications in Human Capital Management (HCM) and Customer Relationship Management (CRM) are being widely accepted by clients, which is driving the growth in cloud-based applications. On the other hand, onpremise applications continue to dominate the ERP market, due to data security issues. ERP has a larger market share in the package implementation market.
Incrementally, larger organisations are opening up to cloud offerings, particularly in HCM and CRM. Cloud-based applications are more standardised and they offer a relatively lower scope for customisation as compared to on-premises applications. Earlier, large organisations were less flexible in adopting customised applications, but incrementally, they are adopting standardised solutions with some minor customisations.
The implementation cycle of cloud-based applications (four weeks to three months) is around one-third that of on-premise applications (9 months to 12 months). In a cloud application, all the components are prepackaged, which leads to a lower procurement. Larger number of implementations by SMEs can offset the revenue loss by increased volumes and to some extent by higher margins.
BFSI has been one of the most under-penetrated verticals in cloud adoption, because this vertical has faced several regulatory and compliance issues related to data security.
Although some cannibalisation of the on-premise package implementation business from cloud offerings is likely, on-premises and cloud applications are likely to co-exist in the medium term.