IBM, Oracle Tout Cloud Customer Wins

Scott Ferguson

IBM and Oracle are looking to rival each other in the cloud market by announcing significant customer agreements within a few days of one another.

On June 26, Oracle announced that it has signed an agreement with Bank of America to supply the bank with its cloud-based enterprise resource planning (ERP) and other financial applications.

The applications will run on-premises within Bank of America, but use Oracle's hardware, according to CNBC. Both the ERP and financial-planning apps will be used within the bank's international general ledger, as well as its broker-dealer system.

"We anticipate 80 percent of our technology workloads will be delivered on the cloud within the next few years, and this solution for general ledger reflects our evolving strategy and the improvements in cloud security and economics," Cathy Bessant, chief operations and technology officer, noted in a statement.

(Source: Geralt via Pixabay)

(Source: Geralt via Pixabay)

CNBC also reported that the Oracle ERP apps are displacing some SAP workloads used by Bank of America.

Not to be outdone, IBM announced a deal with America Airlines on June 27 that will see the airlines move several critical applications, including its main, customer-facing website -- -- along with mobile applications, check-in kiosks and other workloads to Big Blue's public cloud.

Although customer-facing parts will run on IBM's public cloud, American will still use its on-premises systems and other third-party software to maintain backend connectivity.

In addition, the two companies plan to develop cloud-native applications, and rewrite older apps using IBM's platform-as-a-service (PaaS) offering to incorporate more developer tools such as micro-services, Agile and DevOps.

M&A activity is turning the cloud upside down. Find out what you need to know in our special report: Mergers, Acquisitions & IPOs are Rocking the Cloud.

"We also wanted a partner that would offer us the agility to innovate at the organizational and process levels and have deep industry expertise with security at its core," Daniel Henry, American's vice president for Customer Technology and Enterprise Architecture, wrote in a statement on Tuesday.

IBM and Oracle have each tried to make their way in the public cloud market even as the two companies struggle with legacy offerings, including on-premises software requiring long-term contracts, and customer bases looking for more flexible offerings that are in the cloud.

In Gartner's recently released Magic Quadrant for infrastructure-as-a-service (IaaS), IBM and Oracle are each listed in the leadership category, but remain far behind Amazon Web Services when it comes to execution. Microsoft and Google also outranked Oracle and IBM in the report.

Related posts:

— Scott Ferguson, Editor, Enterprise Cloud News. Follow him on Twitter @sferguson_LR.

(6)  | 
Comment  | 
Print  | 
Related Stories
Newest First  |  Oldest First  |  Threaded View        ADD A COMMENT
7/7/2017 | 3:29:48 AM
Re: Says it all
Maybe Microsoft could buy IBM to thank it for helping MS so much in its early days.
7/6/2017 | 11:31:37 AM
Re: Says it all
It will be interesting to watch IBM and Oracle as they not only battle one another but to see if they will try to play catch up with Google and Microsoft or play for a more niche role in the cloud service arena.
6/30/2017 | 4:30:19 PM
Says it all
This says it all: "We anticipate 80 percent of our technology workloads will be delivered on the cloud within the next few years." Maybe sooner!
Joe Stanganelli
Joe Stanganelli
6/29/2017 | 12:04:44 PM
> SAP and Oracle seemed to be locked in as major rivals

Sounds like poetic irony, no? ;)
6/27/2017 | 5:06:31 PM
@danielcawrey: And Oracle has really doubled down on ERP, especially in the cloud. It seems what BoA wanted out of the deal was some type of hybrid solution, but Oracle manages the heavy lifting. 
6/27/2017 | 3:32:50 PM
For big companies, Enterprise Resource Planning, or ERP, is a big component to making all the gears move. SAP and Oracle seemed to be locked in as major rivals in the ERP space, and I find it interesting they defined these products as cloud because the servers are on-premise. 

However, when it comes to organizations like banks, on-premise is the only way to go. 
More Blogs from Scott Ferguson

For the last several years, CIOs and IT professionals have been wrestling with two specific issues as they work toward a cloud-centric future: Agile IT and the rush toward digital transformation. While enterprises want to keep innovating, finding a starting point and knowing which projects to tackle first remain a major obstacle.

To get a better handle on Agile IT and digital transformation, Light Reading Managing Editor Scott Ferguson recently spoke to two experts in these fields: Dan Kearnan, senior director of marketing for cloud at SAP, and Roy Illsley, a distinguished analyst with Ovum.

From its roots in industrial farm machinery and other equipment, John Deere has always looked for a technological edge. About 20 years ago, it was GPS and then 4G LTE. Now it's turning its attention to AI, machine learning and IoT.
Artificial intelligence and automation will become more integral to the enterprise, and 90% of all apps will have integrated AI capabilities by 2020, according to Oracle CEO Mark Hurd.
IBM is now offering access to Nvidia's Tesla V100 GPUs through its cloud offerings to help accelerate AI, HPC and other high-throughput workloads.
CIO Rhonda Gass is spearheading an effort to bring more automation and IoT to the factories making Stanley Black & Decker tools and other equipment.
Featured Video
Upcoming Live Events
March 16-18, 2020, Embassy Suites, Denver, Colorado
April 20, 2020, Las Vegas Convention Center
May 18-20, 2020, Irving Convention Center, Dallas, TX
May 18, 2020, Hackberry Creek Country Club, Irving, Texas
September 15-16, 2020, The Westin Westminster, Denver
All Upcoming Live Events
Upcoming Webinars
Webinar Archive
Partner Perspectives - content from our sponsors
Challenges & Key Issues of Constructing 'MEC-Ready' 5G Bearer Networks for Carriers
By Dr. Song Jun, Senior Solution Architect, Huawei Datacom Product Line
Good Measures for 5G Service Assurance
By Tomer Ilan, Senior Director of Product Management, RADCOM
Automation Scores Against Operational Costs – The Business Benefits of Automation and Orchestration
By John Malzahn, Senior Manager, Service Provider Product Marketing, Cisco Systems
All Partner Perspectives